Room rates plunge in Abu Dhabi

Average room rates in Abu Dhabi are 23 percent lower than this time last year, while overall occupancy levels have dropped by 13 percent thanks to the additional hotel room capacity on the market - according to the latest figures released by Abu Dhabi Tourism Authority (ADTA).

While hotel apartments managed a 72 percent occupancy rate in July, hotels managed just 54 percent.

Despite this, visitors numbers to Abu Dhabi are in fact increasing. The emirate saw a 16 percent rise in the number of guests staying in the emirate’s 116  hotels and hotel apartments last month compared to July 2009.

Guest numbers rose to 137,714 with the number of nights stayed totalling 376,439 – a 24 percent increase on July 2009. The average length of stay also increased by six percent to 2.73 nights.

The figures make July the ninth consecutive month of double-digit guests growth for the emirate with, for the first time, international market growth of 29 percent outstripping domestic growth, which turned in a four percent increase.

The UAE still accounted for the largest number of guests in July with some 63,027 staying in the emirate’s hotels while the UK came in as the largest international market with some 7,101 guests – a 27percent rise on July 2009. Saudi Arabia turned in substantial growth of 47percent with some 4,682 guests,  while guests from France increased 36 percent to 2,070.

Mubarak Al Muhairi, director general, ADTA said: “Growth in what is traditionally a slow summer month for Abu Dhabi is immensely encouraging. Our guest performance this year has now gone over the million mark leaving us well placed to meet, if not exceed, our 2010 target of 1.65 million.

“We are confident because of what lies ahead in the coming months for Abu Dhabi with the October launch of Ferrari World Abu Dhabi which we believe will have strong regional and international appeal and November’s staging of the Formula 1 Abu Dhabi Grand Prix, which is shaping up to be an thrilling finale for the F1 season."