Abu Dhabi’s investment in tourism has led to oversupply in the market and a lower demand for the currently operating hotels, according to hoteliers in the region.
The lack of demand has led to hotels across the capital dropping their rates for the summer period much earlier than they would normally do.
City Seasons Group of Hotels managing director Thomas Tapken said: “It is normal to see rates going down from July but this year they started to drop in May, right after ATM and they will stay down now until after the summer”
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Tapken, who has a property in the city centre, said his average room rate and occupancy was down by 10 to 15% from the first quarter of 2010.
“We regrettably have been forced to drop our rates already but I would have preferred to sacrifice my occupancy at the expense of my average room rate as I do believe the city should have maintained the rates” said Tapken.
“It’s going to be a painful summer for us all,” he added.
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Jun 11, 2010 , Oman
Dear Bored, I absolutely agree with you, you nailed it. Our figures speak differently despite room rooms supply in the 3 and 4 star category right besides our 5 star operation.
Jun 10, 2010 , Thailand
More mind blowingly mundane comments that really do nothing more than give a bit of publicity to a new MD...