Abu Dhabi: Hotel room prices in Abu Dhabi dropped 14.2 per cent during the month of June 2014 compared to May 2014, according to a report released on Monday by the Statistics Centre Abu Dhabi (Scad).
The report, which tracks the Hotel Price Index (HPI), also showed a decrease in room rates by 5.1 per cent in June 2014 compared to June 2013. Additionally, rates were 7.2 per cent lower during the first five months of this year compared to the same period last year.
Meanwhile, rates for hotel apartments fell 3.6 per cent during June 2014 compared with May 2014. Hotel apartments’ rates also decreased by 0.8 per cent during June 2014 compared with June 2013.
However, rates of hotel apartments have increase by 0.5 per cent during the first five months of this year compared with the same period last year.
According to the report, prices of five-star to one-star hotel rooms have gone down over the past year.
Christopher Hewett, senior consultant at TRI Hospitality Consulting, commented on the drop in prices saying. “Average rates have dropped in June, and that’s a historical reduction during the summer. We tend to see occupancy at low levels especially in the hot months.”
According to Hewett, hotel room rates in Abu Dhabi range between $125 and $135 (Dh459.12 and Dh495.85) during the summer months to attract more visitors, whereas the average during the rest of the year is $147.
“In Dubai, average room rates are at $340, so this makes [Abu Dhabi] a lot more attractive especially for transit visitors. [The Abu Dhabi Tourism and Culture Authority] has been trying to focus on getting transit visitors to stay in the emirate so the prices certainly help against rival markets like Doha and Dubai,” he said.
Looking into each hotel category, the report showed that one-star hotels registered the greatest drop in prices of 19.4 per cent during June 2014 compared with June 2013. This was followed by a 7.3 per cent drop in rates of five-star hotels, and two per cent in rates of three-star hotels.
