Building boom keeps Mid-East rates static
Hotel bedrooms in the Middle East cost the same last year as they did in 1993, according to a new report.
The survey, entitled Middle East Hotels - Trends and Opportunities, shows that between 1993 and 1999 average achieved room rates went up by less than 1%.
The price of rooms remained virtually static despite an increase in customer demand. This was because so many hotels were built in the region, which meant hoteliers had to cut their prices to attract guests.
Among the companies most actively involved in building hotels in the Middle East are Bass, Starwood, Hilton, Marriott and Le Méridien.
Egypt experienced the biggest increase in visitor arrivals last year. In 1999 4.5 million people visited Egypt, representing a 40% increase on 1998's 3.2 million. Dubai, meanwhile, witnessed large increases in bedroom supply. As a result, Dubai's average room rates fell last year by about 3% to US$104 (£70).
The survey, by HVS International, was based on a sample of 108 hotels, representing 31,000 bedrooms in 13 countries.
Copies of the report are available, free, from HVS International, 14 Hallam Street, London W1W 6JG, or visit the Web site at www.hvsinternational.com.
