| Element List | Explanation |
|---|---|
| Announcement Detail | Abdulmohsen Alhokair Group for Tourism and Development announces that the company’s businesses were affected by Covid-19 pandemic (Coronavirus) and by the precautionary and preventive measures taken by the government to control the emerging corona virus and to prevent it’s spread. |
1. The reasons that led the company being affected by this pandemic are as follows:
* All the Entertainment sites were closed from 15th of March 2020 to 20th of June 2020, due to the precautionary and preventive measures taken by the government to control the emerging corona virus, therefore no revenues recognized from the entertainment sites during this period.
* The occupancy rates of the hotel sector were reduced due to the precautionary measures, also all the meetings and wedding were stopped during the suspension period of the commercial activities, in line with the decision of the Ministry of Municipality and Rural Affairs about not allowing the gathering to prevent the spread of coronavirus and to protect the health of citizens and residents.
* The suspension of all domestic and international flights, affected the business of all company’s sectors.
2-The pandemic led the company’s revenues to decrease by SAR 224.5 million during the four months which started from March to June 2020, compared to the same period of last year.
3- The management has taken a series of actions to mitigate the effects of this pandemic on its operations, as follows:
* The gradual reopening of the entertainment sites on June 21, 2020, with applying all the preventive measures that issued by the Ministry of Health in all the company's commercial activities, by imposing the temperature checks, distributing of protective masks and sanitizers, in addition to adhering the social distancing, as stated in the company's announcement on June 21, 2020.
* Reducing the operating expenses by reducing salaries and related benefits expenses in proportion to the actual number of working hours, also reducing rent expenses by getting rent discounts from the lessors and reducing other operating expenses.
* Maintaining strong cash position and great banking relationships.
* The company contracted with the Ministry of Health to use some of it’s hotels as a quarantine.
On other hand, the company has benefited from some governmental initiatives to support the private sector companies that has been impacted from the current consequences of Covid-19, as follows:
* Saned system initiative, where the General Organization for Social Insurance (GOSI) burden 60% of the Saudi employees salaries, not exceeding 70% of the total number of Saudi employees.
* Hadaf program, which provide 30% from the salary or SAR 3,000 whichever is less, to support Saudi employees who were employed in the private sector from the date of July 1, 2019.
* Postponed of loan payments for all bank facilities and postponed the value added tax.
* Other government initiatives such as reduction of the electricity bills, extending the iqama validity of the employees and other initiatives.
4. The company can't determine when coronavirus pandemic effect will be ended.
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