Aberdeen's hotel sector hit by oil industry slump

THE oil slump in Aberdeen has hammered the city's tourism sector, according to research.

The oil slump in Aberdeen has affected the citys tourism sector.

The city’s hotels saw occupancy rates and the average cost of a room plummet last year in the wake of a wave of job losses in the vital industry in the North-east. Occupancy rates were down 11 per cent in the space of 12 months, with the average cost of a room slumping by 13 per cent.

There was also a 25 per cent drop in the other key tourism sector indicator of revenue per available room in Aberdeen.

Bruce Cartwright, head of recovery services at PwC in Scotland, said both Edinburgh and Glasgow had performed well last year, with more hotels rooms expected to provide a further boost.

He added: “Growth in the travel and hospitality sector is expected to continue to outpace the wider economy, all helped by the weak euro.

“European travellers have only seen modest air fair price reductions as a result of the fall in oil prices – 2016 could herald even more competitive

pricing – but that will be of scant comfort to the sector in Aberdeen.”

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