Abu Dhabi Hospitality Sector Shining

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Abu Dhabi recorded steady growth of 5.5% in the year 2010, in both number of hotels and visitors.

According to the latest data compiled by the Abu Dhabi Statistics Centre (SCAD), the guests in hotel and serviced apartments in the UAE capital rose by 17.7% last year. However, the annual occupancy rate dropped to 64.7% from 72.2% due to increase in the number of hotels and hotel apartments.

At the same time, the Abu Dhabi Tourism Authority (ADTA) in January had an increase in hotel guest by 8%, with around 1.81 million stayed in the hotels and hotel apartments.

ADTA also said that in May there was a significant increase in hotel guests and occupancies. The revenues were helping Abu Dhabi to achieve the target of receiving two million guests in 2011.

The number of guests staying in the hotels and hotel apartments increased 10% to 694,181 in the first four months of this year compared to the same period in 2010. However, the total revenues of hotels dropped marginally in 2010 compared with the previous year.

One reason for the decline in revenues “could be due to the competitive prices” offered as a result of the increase in the number of hotels and the consequent rise in the number of rooms.

Source: Gulf News

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