Many cancelled their reservations in response to insistent media coverage of the attacks that sent shock waves across the country and hit international headlines.

Recently, the Kuwaiti foreign minister and the chief executive officer of James Finlay withdrew their bookings at the Sheraton Hotel, said Sinthia Siraj, marketing communications coordinator of the hotel.

A sombre mood has fallen over the nearly empty lounge of the hotel. "The difference between this and other hartals is that previous strikes ended at 6:00pm and evening events were not affected. This time the political situation was far worse. Wedding receptions and other social events were called off," Sinthia said.

A Purbani Hotel official told Star City on condition of anonymity that 80 rooms of 225 are normally in use. "But visitors have been checking out of hotel since the carnage. Only 22 rooms were booked on August 29 and five boarders were foreigners," the official said.

Hotel business nose-dived because of political turmoil and its impact far outstripped the floods that ravaged much of Bangladesh.

Many foreigners on business left Dhaka early to avoid general strikes, called to protest the grenade attacks. According to Singapore Airlines, flights leaving Bangladesh are now running to capacity, a 40 percent jump from normal passenger load.

Major hotel managers in the city, who refused to disclose the loss precisely, said they were experiencing a 50 to 70 percent decline in business, which includes revenues from hotel occupancy, catering, banquets and conferences.

A decline in hotel business is common during strikes as people who come here do their work faster and leave before general strikes.

Rapid Action Battalion personnel found just outside the Sonargaon Hotel are a stark reminder of recent events. The hotel is taking its own measures to tighten security, checking visitors at the entrance.

"Foreigners build their impression about Bangladesh through what they see on CNN and BBC. They may not realise the trouble is limited to one area. Sonargaon has suffered a 50 percent business loss after the grenade attack," said Imtiaz Ahmed, marketing communications manager of Sonargaon Hotel.

The Best Western La Vinci, a business hotel in Karwan Bazar, feels the impact of the blow. "Business hotels depend on government decisions. Now we have to pay our staff at the end of the month with insufficient revenues," said Badrul Alam Khan, front office manager of La Vinci.

The financial health of hotels is often an indicator of the direction of foreign investment. A foreigner said upon checking out of a hotel: "Many are thinking of moving to Bangkok to carry out our activities in a politically congenial environment."