Ariel view - Yas Island, Abu Dhabi. Ariel view - Yas Island, Abu Dhabi.

As prices rocket in Dubai, Abu Dhabi is rapidly establishing itself as a viable alternative for those seeking accommodation in the UAE. But are there storm clouds on the horizon? Hotelier investigates ...

Have a conversation with anyone about Abu Dhabi and it’s virtually guaranteed a comparative with Dubai will be mentioned within 20 seconds.

Look, it’s just happened.

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But there are plenty of signs signalling the end of this “old hat” conversation and part of the reason for this is an expanding product offering and signs of positive growth in tourism and hotel statistics.

Figures just released by Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) show that from January to the end of June this year, 1,700,135 guests checked into the emirate’s accommodation — a 28% increase on the first half of 2013.

Arrivals delivered 5,147,392 guest nights, which was up 22% on the same period last year, with occupancy climbing 8% year-on-year.

Sultan Al Dhaheri, acting executive director tourism, TCA Abu Dhabi explains the positive trend.

“Our bullish half year performance was aided by a jump in year-on-year uplift for the month of June when guest arrivals rose 14% to 264,203, guest nights climbed 18% to 771,997, the average length-of-stay nudged up 4% to 2.92 nights and occupancy moved up 8% to 70%,” he reveals.

Hotel revenues also rose 16% to AED 413 million (US $112.4 million).

“The occupancy increase should also be viewed alongside the fact that the number of hotels in the emirate in June this year stood at 154 with a total of 27,405 rooms against June 2013, when there were 145 hotels accounting for 25,270 rooms,” says HE Jasem Al Darmaki, deputy director general, TCA Abu Dhabi.

“There was a considerable arrivals uplift during the month from within the UAE market, the GCC, China, Russia, India, France, Germany and the UK.”

TCA says a number of factors have been at play in delivering the half year and June 2014 results, including a highly competitive average room rate which now stands at AED348 ($95) – and increasing access to the destination with new Etihad Airways services this year from Madinah, Jaipur, Zurich and Los Angeles and the introduction of a non-stop service from Brisbane, Australia.

“Even more is promised with the Etihad network having expanded in July to include flights from Rome, Perth and Dallas, due online in December,” explains Al Darmaki.

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