Abu Dhabi hotels record 16.3% revenue growth in H1

The first half of 2013 saw Abu Dhabi hotels record a 16.3% increase in revenues compared to the same period last year, rising to a total of AED 2.7 billion (US $735 million).

The emirate also saw a 12% increase in the number of hotels in H1, with occupancy rates still managing to reach 70.7%, an 8.3% annual increase. 

Speaking exclusively to Hotelier Middle East Abu Dhabi Tourism & Culture Authority director of strategy & policy Mohammed Al Dhaheri highlighted the TCA’s role in the increase by explaining: “We are working very closely with our stakeholders and strategic partners such as Etihad Airlines, Abu Dhabi National Exhibitions Company, all the hotels. We’re working with malls, with attractions, we’re trying to provide and aggressively promote and market Abu Dhabi in our key markets.”

“We’re trying to provide a very convincing value proposition for the Emirate, and it’s working,” he added.

Al Dhaheri identified these key markets as Western Europe, India, China, Russia and Australia. The largest market of the group is the Indian market which accounts for 27% of guest nights in the Emirate.

He also stated that the TCA will continue its aggressive marketing strategy to ensure the numbers keep on rising. “We will work very closely together, [and continue to] go and participate in international exhibitions, we will take our partners into dedicated road shows in our key markets. We are building the relationships internationally with the local providers,” he said.

Although revenues have increased substantially as compared to 2012, revenues within 2013 have declined due to seasonality, especially the Ramadan period. However, Al Dhaheri expects the numbers to rise towards the end of the year with the festive season arriving.

He concluded by sharing his predictions for the impact of the Dubai Expo 2020 on the Abu Dhabi tourism and hotel market. Al Dhaheri commented: “[People] will come mainly for the Expo, they will come for business but they will need a place to stay, they will need a place to eat, they will need a place to shop, a place to entertain.”

“The whole UAE will benefit from it and given our very close proximity to Dubai and the abundance of hotel rooms here, yes [I think we will too],” he concludes.