Abu Dhabi Records 19 Percent Increase In Q1 2010 Hotel Guests

Abu Dhabi recorded a 19 percent increase in the number of guests staying in the emirate’s 116 hotels and hotel apartments in the first quarter of this year.

Figures released by Abu Dhabi Tourism Authority (ADTA), based on its accommodation sector census, show 462,173 hotel guests stayed in the emirate in the first three months of the year accounting for 1,252,144 guest nights - a rise of nine per cent on the same period last year.

"We are on track to attain our year-end target of a 10 percent increase in hotel guests to 1.65 million," explained Mubarak Al Muhairi, Director General, ADTA.

Domestic tourism performed well over the period with a 25 percent growth to 191,949 hotel guests. Abu Dhabi’s top five overseas markets were: the UK, with 19 percent growth to 31,320 guests; the GCC which increased 29 percent to account for 26,685 guests; the USA, which accounted for 21,776 guests which was actually a drop of just one percent; India, which rose 26 percent to 18,463 guests and Germany, which accounted for 16,467 guests but has slipped back by 20 percent compared to Q1 2009.

"These results have to be judged in light of Abu Dhabi’s growing accommodation inventory - which has gone to 17,600 rooms in the first quarter of this year, from just under 13,000 this time last year," explained Al Muhairi.

Average occupancy rates for Abu Dhabi’s accommodation providers in Q1 this year came in at 66 percent - ahead of some major international tourism destinations including Madrid and Berlin, both of which rated 58 percent and Beijing on 54 percent.

The ADTA Director General emphasised Abu Dhabi’s increasing room inventory is changing the emirate’s supply and demand dynamics, ultimately making the destination more competitive.

"Hotel guest revenue for Q1 amounted to AED 1.15 billion (US $313 million) and the average length of stay was 2.7 nights. Both measures have dropped slightly on Q1 last year by 5 percent and 8 percent respectively and we will be focussing heavily on improving both," said Al Muhairi. Increasing length of stay, even marginally, is a rapid and effective means of improving the bottom line for accommodation operators. But the good news for hotel guests, is that the destination is now more affordable than it has been for the past three years. In a value conscious tourism marketplace, affordability is critical to building demand.

"We will keep our foot on the pedal in terms of building destination awareness and appeal. In the first three months of this year the authority, ably supported by its stakeholder partners, hosted its largest ever number of inbound media familiarisation trips, some 105 organisations from 22 countries, and we will continue to build on this. Our international events portfolio expanded in Q1 to take in the inaugural, and highly successful, Abu Dhabi International Triathlon.

"We, again in co-operation with our stakeholders, are participating in more overseas travel fairs than ever before and we will also shortly roll out our first global advertising campaign to build key markets’ response, stimulate interest from emerging markets and cement our tourism proposition in the minds of potential travellers. In addition, we anticipate at least one more international destination joining our overseas office network by the end of the year and feasibility studies into three key candidate markets are being finalised. We are also about to announce a significant expansion to our Summer in Abu Dhabi family festival, targeted at the GCC.

"And we believe the influential third-party endorsement received from two of the world’s leading travel guides - Lonely Planet and Frommer’s - which ranked Abu Dhabi as among the top 10 destinations to visit this year has given solid credibility to our advancing leisure proposition." Abu Dhabi’s hotel guests remain heavily business-oriented with an 80/20 business-to-leisure profile though ADTA believes its growing leisure offering will change this ratio.

"Over the past year we have seen many private sector initiatives create new leisure offerings. We have welcomed the Big Bus open-top-bus tours of the capital city, speedboat tours around the coastline, fishing and diving, the opening of the Kids Park Zoo as well as two championship-ready golf courses on Saadiyat and Yas islands and the expansion of an all-grass course in Al Ain into an 18-hole facility.

"We believe the existing momentum can be accelerated and are looking at ways to motivate tour operators and entrepreneurs to bring new products to market. The launch of our Horizons Abu Dhabi initiative, which provides incentives to those with viable B2C concepts is a case in point - more will follow." ADTA’s first international visitor survey is shedding new light on Abu Dhabi’s total tourist profile, especially those visiting friends and relatives. "Visitors for these, and other overnight purposes, may swell our estimates of Abu Dhabi’s total visitor population by 20-30 percent," explained Al Muhairi. "When these extra visitors, who are predominantly leisure focussed, are taken into account, the business/leisure tourism split could look more like 60/40. ADTA’s target is to move this proportion closer to 50/50 by 2012. Expansion of leisure facilities, such as those on Yas Island, particularly this year’s planned opening of Ferrari World Abu Dhabi, the world’s largest indoor theme park, the development of world-class cultural attractions on Saadiyat Island and an expanded purpose built resort portfolio will help to realise this target in the medium term." Abu Dhabi’s hotel room stock is set to rise further this year - by 4,000 plus rooms. Another 11 hotels are slated to open by the year end including: the Venetian inspired waterfront resort Grand Canal Abu Dhabi by JW Marriott, being built by Abu Dhabi National Hotels which, with 500 rooms and suites, will be the second largest hotel development to date in the UAE; the Rocco Forte Abu Dhabi, a joint venture by Tourism Development ’&’ Investment Company and the UAE’s Al Farida Investment Company LLC, which marks the Rocco Forte Collection’s entry into the Middle East and the 257 rooms and suites Hili Rayhaan by Rotana in the emirate’s heritage city of Al Ain.

"Destination development is also being significantly enhanced by improved air access resulting from the growth of Etihad Airways’ route network, which is opening up access to high potential markets and the arrival of new airlines serving both Abu Dhabi and Al Ain international airports. There is also a significant amount of traffic now transiting Abu Dhabi International Airport which holds out huge potential for the development of competitive stop-over packages," added Al Muhairi.

Etihad Airways recently launched a five-times weekly service from Tokyo to Abu Dhabi while Air France is to commence a five-times weekly service from Charles de Gaulle to the UAE capital on May 3. On the same day Oman Air will inaugurate a daily scheduled service from Seeb International to Al Ain.
 

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