BAHRAIN has suffered losses of up to BD800 million due to the unrest, according to a study.

The findings were issued in a report assessing the economic impact of the troubles presented to Shura Council during its weekly session yesterday.

It recorded "direct losses" of BD200m to the economy and "indirect losses" of around BD600m.

The report said the cancellation of major events like the Gulf Air Bahrain Grand Prix, which accounted for losses of up to BD200m, and the Spring of Culture Festival among others were responsible.

It found the unrest led to an 80 per cent drop in tourism compared to 2010, which threatened the jobs of 4,000 workers.

Hotels also suffered a drop in business by 30.3pc between January and March, which only improved to losses of 29.3pc during the second quarter of last year.

Other businesses affected such as airlines, malls, taxi drivers, restaurants and markets also suffered, with the impact felt by locals, expatriates and visitors, said the report.

Up to 80pc of construction firms are also reportedly considering pulling out of Bahrain's market as a result of the situation and the fact banks were reluctant to give loans.

A joint committee involving the Bahrain Chamber of Commerce and Industry, parliament and Shura Council was tasked with assessing the impact of the unrest, which started last February.

Council Financial and Economic Affairs Committee Chairman Hon. Khalid Al Maskati has been tasked to come up with ideas to help revive Bahrain's worst affected sectors.

"There are huge negative impacts still going on that need immediate solutions and we with our partners in the chamber and parliament will from today start work to come up with long-run plans that will restore the market to its original state," he said.

His findings will be discussed in the National Assembly and later presented to His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa for implementation.

Hon.  Al Maskati said potential solutions that could be implemented now included providing businessmen with financial support to help them recover.

"Besides that multiple fees have to be revised to ensure that costs reduce," he said.

"The fees include those taken by the Labour Market Regulatory Authority or for training, tourism, health, customs, commercial registrations and municipal services.

"The Central Bank of Bahrain could also guarantee businessmen when taking loans to help refresh the market and ensure business recover.