Wealth Management by

Abu Dhabi reports 28% rise in first half hotel guest performance

August 5, 2014 10:47 am

Abu Dhabi’s hotels and hotel apartments have reported their best half year performance yet in terms of hotel guests, guest nights and revenues with occupancy also rebounding to reach 77%.

Figures just released by Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) show that from January to end June this year, 1,700,135 guests checked into the emirate’s accommodation – a 28% up lift on the first half of 2013. The arrivals delivered 5,147,392 guest nights, which was up 22% on the comparative period last year with occupancy climbing 8% year-on-year.

Hotel and room revenues both jumped 15% to AED3.089 billion (US $841 million) and AED 1, 578 billion (US $429.8 million) respectively.

The bullish half year performance was aided by a jump in year-on-year uplift for the month of June when guest arrivals rose 14% to 264,203, guest nights climbed 18% to 771,997, the average length-of-stay nudged up 4% to 2.92 nights and occupancy moved up 8% to 70%. Hotel revenues rose 16% to AED413 million (US $112.4 million).

“The occupancy increase should also be viewed alongside the fact that the number of hotels in the emirate in June this year stood at 154 with a total of 27,405 room against June 2013 when there were 145 hotels accounting for 25,270 rooms,” said HE Jasem Al Darmaki, Deputy Director General, TCA Abu Dhabi.

“There was considerable arrivals uplift during the month from within the UAE market, the GCC, China, Russia, India, France, Germany and the UK.”

TCA says a number of factors have been at play in delivering the half year and June 2014 results, including a highly competitive average room rate which now stands at AED348 – or just US $95 – and increasing air access to the destination with new Etihad Airways services this year from Medina, Jaipur, Zurich and Los Angeles and the introduction of a non-stop service from Brisbane, Australia.

“Even more is promised with the Etihad network having expanded in July to include flights from Rome and Perth and Dallas, Texas due on line in December,” explained Al Darmaki.

“We have also seen a concerted stakeholder campaign for our new Abu Dhabi Summer Season which has seen the destination putting out compelling entertainment, hospitality and attraction packages across the entire tourism eco-system.”

The results leave the destination well placed to attain its 2014 hotel guest target of 3.2 million “with a dynamic Q3 and Q4 to come,” according to Al Darmaki.

“There are a number of high profile major events lined up including the Abu Dhabi Hunting & Equestrian Exhibition, ADIPEC, Abu Dhabi Art, the F1 Etihad Airways Abu Dhabi Grand Prix, the newly-signed ISAF Sailing World Cup, National Day celebrations and the year-end hosting of the Volvo Ocean Race.

“We are also progressing plans for some exciting new destination product which we hope to announce to the market soon.”

Year-on-year domestic tourism is proving robust increasing by 25% as have GCC arrivals with growth being largely driven from Kuwait (44%), Oman (41%) and Saudi Arabia (21%).

India continues to be the destination’s most productive source market. In the first six months of this year 107,995 Indians checked into Abu Dhabi’s hotels – a 35% increase on 2013. These Indian guests delivered 408,862 guest nights, which was a 22% uplift, and stayed, on average, 3.79 nights.

“There has been a slight fall off in the average-length-of-stay of our Indian guests which we are now assessing and will work with stakeholders to better tailor product specific to this guest sector profile,” said Al Darmaki.

“Specific product marketing is now also being developed by stakeholders for the increasingly prolific Chinese and Russian markets.”

The UK is the destination’s second largest overseas market with 98,710 Britons checking into Abu Dhabi in the first half of the year – 26% more than last year. The British accounted for 423,737 guest nights, which was a rise of 17% and stayed, on average, 4.29 nights.

Germany came in as the third most productive international market. Some 67,768 Germans checked into Abu Dhabi – 8% more than in the first half of 2013 and delivered an 11% increase in guest nights to 328,351 staying, on average, 4.85 nights.

“We are quietly confident of ending the year right on target and addressing key areas which we have identified as ripe for improvement, including expansion of length-of-stay, particularly in our Al Gharbia Western Region and Al Ain,” explained Al Darmaki.

For more information please contact:
Mariam Ibrahim Al Hashemi
Public relation Executive
Email: MHashmi@tcaabudhabi.ae