Istanbul – Fastest growth in hotel room income

Posted on 14 February 2011

Date: 25/03/2009
Istanbul – Fastest growth in hotel room income

ISTANBUL – The Deloitte Report: Istanbul is the city with the fastest increase in the incomes from accommodation in Europe.

The institution named Deloitte has prepared a global report called “The Vision of Accommodation – Global Performance Evaluation – spring 2009″ in which Istanbul came forward as the city with the fastest increase in the income from accommodation in Europe.

The Deloitte Report, prepared by the data of STR Global, the largest hotel database of the world, examines hotels of three stars and higher. The number of tourists has increased by 5 percent, according to the report, but has decreased in the second half due to the global economic crisis.

The report says the average increase of the room renting income rates for Europe stood at 2 percent. The 20 big hotels with the highest income in the world accommodation sector happened to be at the regions of Europe and the Middle East, which includes Turkey. Istanbul has increased its average room renting income by 23.5 percent, raising it to $159, thereby becoming the fastest city to increase its accommodation income in Europe.

Ahmet Cangöz, Deloitte Turkey Tourism and Entertainment Industry Official, has evaluated “The Vision of Accommodation – Global Performance Evaluation – spring 2009” report and said the global shrinkage began to show its influence in the final quarter of last year and has reflected in the tourism sector even larger. “This influence will increase globally in the months to come” said Cangöz. “We observe that individuals and institutions make cutbacks in their travel expenses. Consumers who travel as tourists demand more reasonable prices from hotels. The hotels need to offer more values to the customers and the governments should increase the investments on transportation and airports to enliven the incomes.”

Performance of cities

The report has listed the most popular cities for business and leisure tourism such as New York, Dubai, Istanbul, Paris and London by indicators like room prices, vacancy rates and such. Istanbul has not only happened to be the fastest city in Europe to increase its accommodation income but also one to be with a healthy rate of new hotel investments. London, one of the most popular cities of Europe, has increased its room renting incomes by 20.3 percent and Paris, a famous tourist attraction spot, has managed to increase its only by 10.2. Meanwhile, Moscow, where room prices have increased by 10.5 percent, have risen to the first place among tourism cities with its average room price being $374. Istanbul is No. 16 on that list with an average room price of $227.

Double-digit growth in U.S. dollars has been witnessed in hotel incomes in the first half of the last year while, in the second half, the consumer trust started to drop due to the economic crisis and the tourism sector in general began to experience difficulties.

By the last quarter of 2008, the room profitability in many regions started to reflect the negative impacts. At the end of 2008, double-digit income increases like 14. 5 and 18.3 percent by room could only be witnessed in Central and South America, and the Middle East.

Hürriyet Daily News 24 March 2009

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