Abu Dhabi hotel guests increase

The average length of stay during the first half of the year in Abu Dhabi hotels dropped slightly from 2.75 nights to 2.63 nights, contributing to a drop in occupancy rates by about 18 per cent.

Abu Dhabi Tourism Authority (ADTA) yesterday released figures that showed a 16 per cent rise in hotel guests during the first half, while guest nights rose 11 per cent.

"We are now well above our targeted annual growth of 10 per cent and have seen double digit monthly growth since last November's staging of Formula 1 Etihad Airways Abu Dhabi Grand Prix," said Mubarak Al Muhairi, ADTA director-general.

A total of 936,579 visitors stayed in the emirate's 116 hotels and hotel apartments during January and June, for a combined 2.47 million nights. Occupancy rates, however, fell 18 per cent to an average of 64 per cent.

"There are various reasons for a drop in average length of stay," said Guy Wilkinson, partner and general manager at Viability Management Consultants.

"Business tourists stay for about one or two nights while [holiday] tourists stay for seven nights. If occupancy is down, the mix between business visitors and tourists may have changed," he said.

The ADTA director-general said the authority is working with its stakeholders to try to increase the average length of stay of hotel guests. The domestic market recorded a 20 per cent rise on the same period in 2009 with 397,547 guests.

The UK was the most productive overseas market with an 18 per cent rise over the 2009 period, taking British guest arrivals to 60,994.

"Overall the international market grew by a healthy 13 per cent which is highly encouraging as it is a reversal of last year's scenario," said Al Muhairi.

The neighbouring GCC region again proved to be a key source market with guest arrivals growing by 30 per cent over the year to 52,505, the tourism authority said.

Abu Dhabi appears to be building its traditionally slow summer period with hotel guests in June this year rising 17 per cent on June 2009. The UAE capital's increased accommodation stock has changed marketplace dynamics. Over the past six months, the drop in occupancy levels also resulted in revenue dropping 5 per cent to Dh2.1 billion (about $572 million).

"In general you've got the efforts of Etihad Airways and ADTA itself promoting tourism in city. On the other hand, business guests are rising as Abu Dhabi continues to develop projects which would draw in business guests," Wilkinson said.

He said hosting cultural events such as World of Music and Dance (WOMAD) has helped increase the number of guests.