Karachi hotels gain from War on Terror

Karachi is not the most likely place to have enjoyed an increase in occupancy last year. As a major city in troubled Pakistan, the reverse might have been expected. But the PKF survey revealed a 4.3% increase in occupancy, putting it, at nearly 70%, third in the rankings behind Abu Dhabi and Dubai among the 19 cities in the Middle East and Africa survey.

Bedrooms were still cheap, at less than US$40 (£26) average achieved room rate, but yield, at US$27 (£17.50), was only fractionally down in a region that had an average fall in yield of 17.8%.

Paradoxically, the reason for Karachi's relative success may have been the War on Terror itself. Hotel rooms have been much in demand by journalists, aid workers and government officials since September last year.