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.


OPEC oil ministers gather to discuss production increase

Updated 19 June 2018
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OPEC oil ministers gather to discuss production increase

  • Analysts expect the group to discuss an increase in production of about 1 million barrels a day
  • The officials were arriving in Vienna ahead of the official meeting Friday

VIENNA: The oil ministers of the OPEC cartel were gathering Tuesday to discuss this week whether to increase production of crude and help limit a rise in global energy prices.
The officials were arriving in Vienna ahead of the official meeting Friday, when they will also confer with Russia, a non-OPEC country that since late 2016 has cooperated with the cartel to limit production.
Analysts expect the group to discuss an increase in production of about 1 million barrels a day, ending the output cut agreed on in 2016.
The cut has since then pushed up the price of crude oil by about 50 percent. The US benchmark in May hit its highest level in three and half years, at $72.35 a barrel.
Upon arriving, the energy minister of the United Arab Emirates, Suhail Al Mazrouei, said: “It’s going to be hopefully a good meeting. We look forward to having this gathering with OPEC and non-OPEC.”
The 14 countries in the Organization of the Petroleum Exporting Countries make more money with higher prices, but are mindful of the fact that more expensive crude can encourage a shift to renewable resources and hurt demand.
“Consumers as well as businesses will be hoping that this week’s OPEC meeting succeeds in keeping a lid on prices, and in so doing calling a halt to a period which has seen a steady rise in fuel costs,” said Michael Hewson, chief market analyst at CMC Markets UK
The rise in the cost of oil has been a key factor in driving up consumer price inflation in major economies like the US and Europe in recent months.
Already US President Donald Trump has called on OPEC to cut production, tweeting in April and again this month that “OPEC is at it again” by allowing oil prices to rise.
Within OPEC, an increase in output will not affect all countries equally. While Saudi Arabia, the cartel’s biggest producer, is seen to be open to a rise in production, other countries cannot afford to do so. Those include Iran and Venezuela, whose industries are stymied either by international sanctions or domestic turmoil. Iran is a fierce regional rival to Saudi Arabia, meaning the OPEC deal could also influence the geopolitics in the Middle East.