Event hotel rate hikes in Abu Dhabi ‘unlikely’
Abu Dhabi, January 5, 2010
Hotel room rate caps during major events in Abu Dhabi are unlikely in 2010, according to the Abu Dhabi Tourism Authority (ADTA), which manages the emirate’s tourism industry.
The authority, which this year implemented rate ceilings in the run up to and during certain major events, says accommodation inventory shifts in the market, equating to a better room supply and demand balance has led to a more competitive rate environment.
“Market forces are by themselves producing a more competitive environment making it easier for major meetings and events producers to satisfy demand from participants and visitors,” explained Nasser Al Reyami, ADTA’s director tourism standards.
“We now have some 17,000 hotel rooms in 111 hotels or hotels apartments throughout the emirate – this is a much improved scenario since this time last year when it was genuinely difficult to secure a room in Abu Dhabi,” he added.
“Over the past 12 months we have seen 4,500 rooms in 11 new hotels join our inventory with 2,250 of them in seven properties on Yas Island. In 2010 we anticipate a further 5,000 rooms coming on line,” Al Reyami continued.
“This new hospitality landscape has changed the entire demand/supply equation and competition is increasing with the obvious impact on rate structures. These make the need for rate caps virtually redundant,” he concluded. – TradeArabia News Service