Dubai: Over a million guests stayed in Abu Dhabi’s hotels in the first five months of the year as occupancy reached 78 per cent, the Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) said on Monday.
From January to May, 1,435,932 hotel guests stayed in the emirate, marking an increase of 30 per cent over the same period in 2013. They stayed for 4,375,395 nights, up 22 per cent year-on-year.
While hotel occupancy rose 8 per cent, the revenue of hotels climbed 14 per cent to Dh2.675 billion, with food and beverage income up 12 per cent to over Dh1 billion.
However, average length of stay and average room rates have dropped compared to the previous year, said Jasem Al Darmaki, deputy director-general of TCA Abu Dhabi. Average length of stay fell 6 per cent to just over three nights, while average room rates dropped 4 per cent to Dh448.
“There is increased and enhanced product now coming into the market to give people more compelling reasons both to visit and to stay longer,” Al Darmaki said in a statement.
Average room rates in the capital have dropped in recent years due to new supply in the market, which has grown by 40 per in the last three years. According to a recent report by property consultancy Knight Frank, average room rates fell 52 per cent last year compared to the five previous years.
Analysts expect the downward trend in average room rates to continue until the year-end. Philip Wooller, area director for the Middle East and Africa at STR Global, expects average room rates to drop 5 per cent compared to 2013. However, he expects rates to pick up in the winter months.
“The market has been impacted by a severe supply and demand imbalance over the past three years as new stock entered the market. However, as the tourist numbers have increased, the equation is balancing out,” said Christopher Hewett, senior consultant at TRI Hospitality Consulting.
According to Wooller, the Abu Dhabi market is expected to see another 900 hotel rooms this year and around 2,100 rooms in 2015. But Hewett says seven hotels are expected to open in the emirate by the end of the year, which represent approximately 1,500 rooms.
On why average lengths of stay in Abu Dhabi hotels have dropped, Hewett said that most of the growth in demand is from international transit passengers who have a short average length of stay compared to corporate and leisure travellers in the region.
India leads source markets
India topped the capital’s international source markets, with 89,761 Indians checking into Abu Dhabi hotels in the first five months of the year, up 38 per cent year-on-year. This was followed by the UK with 85,956 guests, Germany with 59,821 and China with 52,392, up 204 per cent year-on-year, delivering the biggest increase.
Russian guests stayed the longest during the five month period, with 6.22 nights each.
Meanwhile, the capital’s domestic guests grew by 30 per cent from January to May.
TCA Abu Dhabi expects to see more visitors from Italy and Australia with the launch of Etihad Airways’ Rome and Perth routes in July.
The emirate, which has 155 hotels and hotel apartments, is expected to attract 3.2 million visitors this year.
