Abu Dhabi nears yearly target for hotel guests

October proved to be a good month for the capital's hotels, which reported rising guest numbers year-on-year and for the first 10 months of 2010.

Hotels on Yas Island should witness an increase in occupancy on the back of the Ferrari World opening and Show Weekends.

The number of guests staying in the emirate increased by 16 per cent in that time compared with the same period last year, figures released yesterday show.

But with more hotels in the capital, there is pressure on occupancy levels and revenues, the emirate's tourism authority said.

The Abu Dhabi Tourism Authority (ADTA) said the emirate was certain to reach and might even surpass its target for the year of 1.65 million hotel guests, up from 1.54 million last year.

A total of 1,477,798 guests stayed in Abu Dhabi's 118 hotels and hotel apartments in the first 10 months of this year.

"Increased accommodation stock throughout Abu Dhabi impacted occupancy and revenue levels which slipped by 16 per cent year-on-year to 63 per cent and 5 per cent to Dh3.2 billion (US$871.2 million), respectively," the ADTA said.

Lawrence Franklin, the director of strategy and policy at the ADTA, said: "Though now a much more competitive destination than this time last year, we are conscious of the need to achieve a more healthy occupancy of between 65 per cent and 75 per cent to meet investor business imperatives and the demands of consumers.

"Importantly, occupancy during October was a healthy 72 per cent, showing that we have the capability to operate within this range."

In October, there was an 18 per cent increase in guest numbers on the same month last year to 151,335 and a 4 per cent rise in the average length of stay to 3.3 nights.

"We anticipate November's performance will be equally impressive with the emirate having hosted a number of key trade exhibitions and, of course, the 2010 Formula One Etihad Airways Abu Dhabi Grand Prix," Mr Franklin said.

"Add to this the recent opening of Ferrari World Abu Dhabi and the arrival of the Yas Island Show Weekends and our annual target is well within our sights."

Tourism from within the UAE grew 15 per cent over the first 10 months of this year compared with the same period last year to 616,238 guests, while international hotel guests increased 17 per cent to 861,560. Hoteliers say food and beverage is playing an increasingly important role in their revenue flows and the ADTA said revenue from this across Abu Dhabi's hotels reached Dh1.1bn in the first 10 months of the year, a 13 per cent increase on the same period last year.

This means those revenues now make up 36 per cent of all hotel revenues over the first 10 months, against 30 per cent in the same period last year.

Abu Dhabi is aiming to attract 1.9 million hotel guests next year. The sector is expected to contribute 11.1 per cent of the emirate's overall non-oil GDP.

The tourism authority is expecting an increase of more than 5,000 hotels rooms and a 0.4 per cent increase in overall non-oil GDP contribution next year.

"We are confident we can achieve this because our leisure proposition has, and will, continue to grow," Mr Franklin said.

Hotels scheduled to open next year include the Rocco Forte hotel, and the Park Hyatt and St Regis resorts on Saadiyat Island.