Suite news for hotels leading tourist charge

Published on Tuesday 20 July 2004 12:44

• Hotel occupancy rates well above average

• City’s conferences and festivals credited

• Glasgow and Aberdeen falling below UK average

HOTELS in Edinburgh have been identified as the leading performers in Scotland’s hospitality market, a new survey has revealed.

The HotelBenchmark Survey reported that the city’s room occupancy rates - the most accurate measure of the industry’s success - grew from 18 to 30 per cent over the regional UK average between 2000 and April 2004.

The Capital’s results are in contrast with Glasgow and Aberdeen, with both consistently falling below the regional UK average.

The study includes the largest independent source of hotel performance data outside North America, and tracks the performance of more than 6000 hotels and 1.2 million rooms every month.

Fiona Salzen, a corporate finance partner with professional services firm Deloitte, who conducted the research and published the report, said: "Edinburgh holds a unique position in the hospitality industry outside London as a year-round destination with an enviable mix of business and leisure visitors."

According to Ms Salzen, Edinburgh’s growing reputation as an international conference destination and festival capital of Europe has significantly contributed to the improved statistics.

She added: "Edinburgh is the second-most-visited city in the UK and the second-largest financial services centre after London, and the city’s strength in industries such as biotechnology, microelectronics and software will undoubtedly contribute to the numbers visiting each year.

"These factors, combined with the pending completion of the Scottish Parliament building, paint a very bright future for the hotel market in Edinburgh."

The HotelBenchmark survey showed that Glasgow and Aberdeen were predominantly driven by corporate demand, and did not have a high season like that enjoyed by Edinburgh during Festival time in August.

The report said that despite Glasgow’s increasing rate of economic growth, hotel performance had been subdued as a result of the city’s lack of major events.

Graphs included in the survey show how Edinburgh’s revenue per available room was below the regional UK average in January 2000, at around 28, but rose to about 49 by April 2004. During last year’s festivals, that figure was more than 85.

In contrast, the figure for Glasgow and Aberdeen was just over 30 in April this year, compared with the regional UK average of about 42.

Bill Furness, the chief executive of the Edinburgh Chamber of Commerce, said the survey reflected the joint impact of tourism and business.

"It’s very pleasing to hear these results, especially considering the problems in the hospitality industry in other parts of the country," he said.

"The Capital has certainly been aided by the attractiveness of the Edinburgh International Conference Centre and we have also had a lot of new hotels in the city recently, so we now know that there is not an over-supply."

Mr Furness added: "This reflects very well on what Edinburgh has to offer to people."

The report follows upbeat statements from a number of hotel groups as tourism recovers from slumps caused by Sars, war and terrorism.