Abu Dhabi hotels record in tailwind of Etihad Airways route expansion

The occupancy rate at Abu Dhabi’s 149 hotels and hotel apartments averaged 77 per cent, an increase of 10 percentage points year-on-year. Silvia Razgova / The National

A record number of tourists are checking into Abu Dhabi's hotels in the tailwind of Etihad's route expansion.

In January, the occupancy rate at Abu Dhabi’s 149 hotels and hotel apartments averaged 77 per cent, an increase of 10 percentage points year-on-year.

According to figures released yesterday by the Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi), 276,970 guests stayed at the properties, an increase of 36 per cent.

“Etihad’s expansion has been a key factor in the increase in demand for Abu Dhabi’s hotels,” said Christopher Hewett, a senior consultant at TRI Hospitality Consulting. “With the airline expanding to key feeder markets, coupled with overall market growth, we anticipate occupancy rates will increase by a minimum of 3 per cent to 4 per cent this year.”

Etihad is adding new destinations later this year – including Jaipur in India, Perth in Australia and Los Angeles and Dallas in the United States – and TCA Abu Dhabi forecasts a positive year ahead for its tourist numbers.

“These new services will complement greater planned frequency on Etihad’s services from Dublin and New York as well as airberlin’s doubling in October of its daily flights from the German capital to the UAE capital,” said Jasem Al Darmaki, the deputy director general at TCA Abu Dhabi.

Airberlin’s second daily flight between Berlin and Abu Dhabi from October 26, increasing its seat capacity to 8,344 each week, is also expected to help the numbers.

The average room rate in the capital rose 2 per cent to Dh462 in January and contributed to a 22 per cent rise in hotel revenues to Dh522 million. Dining in the capital is also catching on, with revenues from food and beverage sales showing a 21 per cent growth to Dh194m.

“Although we anticipate seeing the market grow in terms of overall demand, we believe the strong competitive environment in the capital will result in minimal rate growth this year,” Mr Hewett said.

Four and five-star hotels in Abu Dhabi recorded a 7.6 per cent increase in room rates, with an average of Dh607 in January, according to TRI’s HotStats survey.

In January, tourists from the US surpassed those from Germany to take the third spot in the guest numbers. India and the UK continued to be the top markets for Abu Dhabi.

A little more than 16,000 Indians checked into Abu Dhabi’s accommodation, a jump of 29 per cent year-on-year, while those from the United Kingdom reached 15,208, a 24 per cent rise. Travellers from both groups stayed on average four nights.

About 11,000 Americans stayed in the emirate, almost double the same month last year. And they stayed about four-and-a-half nights on average.

With the increased promotion of Abu Dhabi in China, there was a 353 per cent jump in travellers from that country in January. Staying an average of one-and-a-half nights, 9,751 Chinese tourists travelled to Abu Dhabi in January.

Abu Dhabi continues to add hotel rooms.

Rosewood Hotels and Resorts, with 189 rooms and suites, opened on Al Maryah Island in May.

Four Seasons Hotel Abu Dhabi is expected to open a property with 190 rooms and 125 residences on Al Maryah in 2016. A 250-room Viceroy Abu Dhabi is also planned for the island.

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