Abu Dhabi sees hotel guest arrivals surge in 2014

The number of hotel guest nights in Abu Dhabi increased by 19% last year, topping 10.5 million, despite a fall in the average length of stay, while average room rates were also down slightly.

Figures released by Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) show that there was a 25% year-on-year increase in the total number of guests to 3.5 million last year.

And, while occupancy levels at hotels increased by four percentage points to 75%, the average length of stay decreased by 4% to 2.99 nights.

However, in terms of revenues, there was positive news across the board, with room revenue up 15% to AED3.26 billion (US $888.85 million) and F&B revenue up 11% to AED2.34 billion (US $636.88 million). Along with the revenues, this meant total hotel revenues were up 14% to AED6.28 billion (US $1.71 billion).

"The industry has performed extremely well, surpassing our 3.1 million guest target and with significant growth being recorded in occupancy and revenues," said Sheikh Sultan bin Tahnoon Al Nahyan, Chairman, TCA Abu Dhabi.

"The exceptional 2014 performance reflects the heightened awareness of our world-class tourism offering, and there are encouraging signs for further growth as we add more diverse products, drive more effective stakeholder coordination and expand our local, regional and global marketing initiatives," he added.

"Despite these encouraging results, there remains room for improvement, notably a dip in length of guest stay and a slight slip in average room rate, which we are actively addressing with the industry," said Jasem Al Darmaki, Acting Director-General, TCA Abu Dhabi.

"This is excellent news when viewed against the background of a 7% rise in available hotel rooms year-on-year," added Al Darmaki.

According to the TCA Abu Dhabi data, average room rates were down 1% to AED442 (US $120.33) last year, while revenue per available room (RevPAR) increased by 4% to AED331 (US $90.11).

Hotel inventory increased by 7% to 160 establishments, including hotel apartments. While the number of five-star hotels remained flat, at 34, there was growth in the one- three- and four-star segments. The total number of rooms in the emirate increased by 9% to 28,374.

In terms of nationality, the UAE remained by far the biggest market for Abu Dhabi hotels, accounting for 1.15 million guest arrivals and up 20% on 2013.

Meanwhile, there was strong growth from India, which remained in second place, with guest arrivals up 32% to 231,702. The United Kingdom was once again in third place, up 25% to 203,788 guest arrivals.

The biggest leap in guest arrivals came from China, up 166% to 120,350, becoming the sixth largest market.