Hotel room rate caps during major events in Abu Dhabi are unlikely in 2010, according to the Abu Dhabi Tourism Authority (ADTA), which manages the emirate’s tourism industry.
The authority, which in 2009 implemented rate ceilings in the run up to and during certain major events, says accommodation inventory shifts in the market, equating to a better room supply-and-demand balance has led to a more competitive rate environment which in turn will act to keep rates reasonable.
“Market forces are by themselves producing a more competitive environment making it easier for major meetings and events producers to satisfy demand from participants and visitors,” said Nasser Al Reyami, ADTA’s director tourism standards.
“We now have some 17,000 hotel rooms in 111 hotels or hotel apartments throughout the emirate – this is a much improved scenario since this time last year when it was genuinely difficult to secure a room in Abu Dhabi.
“Over the past 12 months we have seen 4,500 rooms in 11 new hotels join our inventory with 2,250 of them in seven properties on Yas Island. In 2010 we anticipate a further 5,000 rooms coming on line.
“This new hospitality landscape has changed the entire demand/supply equation and competition is increasing with the obvious impact on rate structures. This makes the need for rate caps virtually redundant.”