Abu Dhabi set to beat hotel target on big month

Abu Dhabi is on track to beat its annual target of 1.65 million hotel guests as the number of bookings recorded in the capital last month shot up by 16 per cent from a year earlier. The latest data released by the Abu Dhabi Tourism Authority (ADTA) yesterday showed a much greater increase in hotel guests than had been expected. "Growth in what is traditionally a slow summer month for Abu Dhabi is immensely encouraging," said Mubarak al Muhairi, the director general of the ADTA.

"Our guest performance this year has now gone over the million mark, leaving us well placed to meet, if not exceed, our 2010 target." Guest numbers last month increased to 137,714. A total of 1,074,293 guests stayed in Abu Dhabi's hotels and hotel apartments in the first seven months of the year, the ADTA said, adding that July was the ninth consecutive month of growth for the emirate. The authority aims to attract 1.65 million hotel guests this year, up from 1.54 million last year.

"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." Abu Dhabi Airports Company last week said it broke the 1 million mark in terms of passenger numbers in July, for the first time in a calendar month.

But despite such strong growth, the increase in guests was outpaced by the number of new hotels coming into the market and depressing rates and occupancy levels. This week, Rotana's Khalidiya Palace Rayhaan is set to open, adding another 443 rooms in the capital. The expansion of accommodation is part of the emirate's plan to expand as a tourism destination and has helped to drive prices down to more affordable levels.

"Additional room capacity continued to drive down overall occupancy levels, which are 13 per cent lower than July 2009, with average room rates down by 23 per cent," the ADTA said. "Hotel apartments achieved a healthier 72 per cent occupancy rate against their hotel counterparts, which managed 54 per cent." The ADTA said that for the first time growth in international guest numbers outstripped the rise in guests from the UAE last month. Overseas visitor numbers were up 29 per cent compared with July last year, while the number of guests from the UAE were up 4 per cent.

Guests from the UK accounted for the most bookings at 7,101 guests, up 27 per cent on July last year. Visitor numbers from Saudi Arabia rose 47 per cent to 4,682 guests. The authority added food and beverage revenues were up 14 per cent on last year, accounting for 35 per cent of all hotel revenues. The Fairmont Bab Al Bahr hotel said its restaurants had performed well all year, adding that summer promotions for its rooms had helped business.

"We launched a number of summer packages in May designed to suit different segments and these have been a great success," said Arshad Hussain, the director of sales and marketing at the Fairmont Bab Al Bahr. "We have already started to see a healthy pickup for room reservations and banqueting post Eid, and business on the books for October and November is very encouraging." The ADTA said visitors spent a total of 376,439 nights in hotels in the emirate, which was a 24 per cent increase on July last year.

The average length of stay was up 6 per cent to 2.73 nights. @Email:[e-mail]