Abu Dhabi hotel rates slump 15% in H1

Hotel rates in Abu Dhabi have fallen 15 percent in the last year, sending the UAE capital plummeting down a list of the world\'s most expensive tourism hotspots. Two years ago Abu Dhabi was the world’s second most expensive city for hotel rooms, but declining rates have seen the emirate drop to 24th place this year. Average hotel room rates declined by 15 percent in the first six months of 2011 compared with the corresponding period last year, from £185.62 ($301) to £158.07 ($256.38), according to a survey by international corporate services company Hogg Robinson Group. The report said the main reason for the sharp decline was an increase in the number of hotel rooms in the capital. Only Cape Town, which in 2010 was hosting the football World Cup, saw rates slump further in H1 2011. Dubai average rooms rates dropped in the first half of the year by seven percent, the report added, from £158.86 to £148.44, putting the emirate in 28th place. Worldwide, rates rose by an average of four percent in the first six months of 2011, with Moscow at the top of the ranking followed by Geneva and Zurich, both in Switzerland. Paris and Stockholm made up the top five positions, the report said. Commenting on the decline in rates in the UAE capital, the report said: \"Abu Dhabi has encountered a similar situation with increased supply and decreased demand due to the rise of business in the city and the recent safety concerns around unrest in the Middle East.\" Despite widespread political unrest, the Middle East & West Africa (MEWA) recorded a flat year on year although it is certain that occupancy was down, the report added. Margaret Bowler, director Global Hotel Relations at HRG, said: “The hotel survey for January to July 2011 shows a mixed set of results. \"In Asia Pacific hotel rates soared as a result of the region’s growing economic dominance and the proliferation of financial centres across the region including Hong Kong and Singapore. This contrasted strongly with the Middle East where hotel supply outstripped demand meaning rates fell sharply. “Overall, our research shows that global hotel rates are increasing and have been exhibiting signs of growth. Looking ahead, we anticipate that hotel rates will continue to rise if the economy improves.” From / Arabian Business News