Article by: Louise Birchall
Two years ago Abu Dhabi was the world’s second most expensive city for hotel rooms, but declining rates have seen the emirate drop to 24th place this year.
Average hotel room rates declined by nearly 15% in the first six months of 2011 compared with the corresponding period last year, from AED 1105 to AED 942, according to a survey by international corporate services company Hogg Robinson Group.
The decline has been attributed to an increase in the number of rooms in the capital, which moved down to being the eighth most expensive city in the first half of 2010, after occupying the second spot behind Moscow in 2009.
Similarly, Dubai average rooms rates dropped in the first half of the year by 7% to AED 884 from AED 946 in the first half of 2010 – putting the emirate in 28th place.
Worldwide, rates rose by an average of 4% in the first six months of 2011, with Moscow remaining at the top of the ranking.
Istanbul climbed into the top 10 list due to a sharp increase in hotel rates, the report showed.
Rates in Asia were said to have risen the most, attributed to the region’s growing economic dominance and proliferation of financial centres across the area, including Hong Kong and Singapore, according to UK-based Hogg Robinson Group.