The price of a hotel room in Abu Dhabi plunged 25% year-on-year, a new survey has revealed.
Hotels prices in the middle eastern city saw the largest fall among the 75 top global cities.
Previously ranked as second in the list of 75 cities with the highest room rates around the world, the middle eastern city fell to 19th place after the average price of a bed dropped from £223 to £168.
The fall reflected a slump in hotel rates across the whole region in 2010, according to HRG’s annual hotel survey.
The Middle East experienced the the greatest regional decrease in average room rates said the report, with Dubai recording a fall in rates of 5% in 2010 compared to 2009, and Doha a drop of 10%.
In the report, the travel management company suggested the slump was due to “enduring economic problems” in the area, although it also pointed out that signs of recovery were evident towards the end of 2010.
Douglas McWilliams, an analyst at the Centre for Economics and Business Research, said room rates declined across 2010 as a whole in the Middle East and West Africa.
“However, more recent data has pointed to recovery. For example in the final quarter of 2010, room rates in Dubai were up by 9.5% year-on-year,” he said.
“Economic growth in the region is expected to surpass typical advanced economy growth in 2011 and 2012.”
Europe also recorded an overall fall in rates in 2010, but the UK bucked the trend – London hotels upped their rates by 3%, compared to 2009.
The highest rise in hotel rates were seen in Asia Pacific and Africa. In Brisbane room rates rose by 32% year-on-year, while in Kuala Lumpur they rose by 13% and in Johannesburg by 17%.
Moscow retained the top spot as the most expensive city in the world for hotels, despite a fall in rates of 3% in 2010. New York City came in second place, followed by Geneva, Paris and Zurich.
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