Restaurants, shops see abnormal decrease in sales this Ramadan

By Chris Johannes and Zhelwan Z. Wali

ERBIL, Kurdistan Region — Some restaurant, specialty store, and kiosk owners in the Kurdistan Region's capital are observing a drop in business a week into Ramadan, blaming the lingering effects of the financial crisis and fewer tourists from other parts of Iraq.  

"Our market is very weak because Arabs do not come, there is weak tourism, the Erbil-Kirkuk road is blocked, people are taxed, and thus not even ready to risk using side roads like the Kirkuk-Taq Taq-Erbil road," Jabar Mahmoud Ahmed, the owner of Sham Restaurant, told Rudaw English on Thursday.

Tourists from other parts of Iraq typically come to the Kurdistan Region in the warmer months for its cooler temperatures, mountains, and different cultural scenes. A bridge linking Erbil to Kirkuk in Pirde (Altun Kupri) was destroyed in October 2017 amid clashes after the federal takeover of Kirkuk.

Ahmed's restaurant is located in the Eskan neighborhood of Erbil. The area is known for its local dishes, tea shops, and as a gathering place, where many socialize until 3 a.m.

He also blamed the downturn in sales on the fallout of Erbil-Baghdad relations following the Kurdistan Region's independence vote in September 2017. Business in different years was "very, very good, but due to the referendum and later events, everything has reduced."

Sham Restaurant is closed during the daytime during Ramadan, but after sundown they serve kebabs, tikka, and qozi (rice with meat).

“People cannot afford to buy them; instead, they eat fast foods like sandwiches because they are much cheaper," said Ahmed.

The KRG, with its economy heavily dependent on the public sector, introduced a reformed salary system this spring and disbursed funds. The government in Erbil has complained that Kurdistan's 12.67-percent share of the federal budget does not meet their needs and wants it returned to 17 percent.

Clerk Mohammed Kanabi waits for customers in Erbil on May 24, 2018.

Up the street, Roj Market has seen a decrease in sales at the start of the Islamic holy month, but is hopeful demand will increase.

“Prior to Ramadan, people bought everything they had needed," said shopkeeper Mohammed Kanabi. "The market has become weak..."

Ramadan began on May 17 in most of the Middle East, including in Iraq. Throughout the month of Ramadan, observers fast during the daytime and break their fast at Iftar, the evening meal after sunset.

Kanabi explained that many people stocked up on supplies before Ramadan.

"After 15 days and as people run out of their necessities... the market will boost with customers. As Eid nears, everyone will flock to the bazaars," predicted Kanabi.

Shops are hopeful that Eid al-Fitr will boost lackluster sales so far in Ramadan.

Not far away, Faruq Nuts owner Ahmed Harki revealed that previously, 40-50 customers would come during the day, but it has now plummeted to 5-10. After Iftar, they also have fewer customers.

"Our sales were better in the past than now," said Harki. “We used to order more items [prior to Ramadan], but now fewer."

Harki is also hopeful that the Eid al-Fitr feast will usher in more sales for the specialty store that has sweets, nuts, and seeds.

“As the Eid nears, we will have more customers," he said.

Tourism in the Kurdistan during the Eid al-Fitr holidays in 2017 generated a government-estimated $73 million. Some 243,000 tourists came to the Kurdistan Region in that span, a two-fold increase from the days in the year before.