Demand for Abu Dhabi hotels rise in October

Above, Emirates Palace in Abu Dhabi. Occupancy at Abu Dhabi hotels was above 90 percent on the days the World Skills competition was held. (Courtesy Emirates Palace)
Updated 11 November 2017
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Demand for Abu Dhabi hotels rise in October

DUBAI: Demand for Abu Dhabi hotels rose in October, propped by the three-day World Skills competition held during the month, preliminary data from hotel industry tracker STR showed.
The arrival of more than 10,000 international visitors, 1,300 competitors and 100,000 visitors from the UAE for the World Skills Competition, held from October 15 to 18, pushed hotel room demand by 13.2 percent, STR said, as against room supply going up by only 0.5 percent.
“Occupancy was above 90% three times during the event, while ADR [Average daily rate] was more than Dh500 each night,” STR said in its preliminary report.
Average occupancy for the month was pegged at 80.9 percent, with average daily room rate up 2.3 percent to Dh465.58 and while revenue per available room rising 15.3 percent to Dh376.88.
STR will release the full October results later this month.
Indian tourists continue to be the main international source market for Abu Dhabi’s hotels, with more than 33,000 guests checking into the emirate in September, according to the Department of Culture and Tourism – Abu Dhabi.
Chinese tourists meanwhile came in second, with more than 28,000 visitors from the Asian country visiting Abu Dhabi’s three regions: Al Dhafra, Al Ain and Abu Dhabi city. The UAE has allowed Chinese visitors to get visas on arrival starting this year.
The emirate welcomed 4.4 million guests in 2016, and is on track to exceed that number this year, the Abu Dhabi tourism agency said.


Oil jumps as market tightens, more gains seen

Updated 24 September 2018
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Oil jumps as market tightens, more gains seen

  • Brent crude hit its highest since May at $80.47 per barrel
  • Commodity traders Trafigura and Mercuria said that Brent could rise to $90 per barrel by Christmas

LONDON: Oil prices rose 2 percent on Monday as US sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel.
Brent crude hit its highest since May at $80.47 per barrel, up $1.63 or more than 2 percent, before easing back slightly to around $80.40 by 0730 GMT. US light crude was $1.18 higher at $71.96.
US commercial crude oil inventories are at their lowest since early 2015 and although US oil production is near a record high of 11 million barrels per day (bpd), subdued US drilling activity points toward a slowdown in output.
Commodity traders Trafigura and Mercuria said on Monday that Brent could rise to $90 per barrel by Christmas and pass $100 in early 2019, as markets tighten once US sanctions against Iran are fully implemented from November.
J.P. Morgan says US sanctions on Iran could lead to a loss of 1.5 million bpd, while Mercuria warned that as much as 2 million bpd could be knocked out of the market.
The Organization of the Petroleum Exporting Countries as well as top producer Russia are discussing raising output to counter falling supply from Iran, although no decision has been made public yet.
OPEC leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, on Sunday ruled out any immediate extra increase in output, effectively rebuffing a call by US President Donald Trump for action to cool the market.
“I do not influence prices,” Saudi Energy Minister Khalid Al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.
A source familiar with OPEC discussions told Reuters on Friday that OPEC and other producers have been discussing the possibility of raising output by 500,000 bpd.
“We expect that those OPEC countries with available spare capacity, led by Saudi Arabia, will increase output but not completely offset the drop in Iranian barrels,” said Edward Bell, commodity analyst at Emirates NBD bank.
JP Morgan said in its latest market outlook, published on Friday, that “a spike to $90 per barrel is likely” for oil prices in the coming months due to the Iran sanctions.
Struggling with high crude prices and a weak rupee, Indian refiners are preparing to cut back crude imports.