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This year, hotel owners in Bucharest reduced tariffs up to 40%, following a 30-40 % decrease in 2009. Specialists consider hotel owners no longer expect to register profit but finding ways to cover costs which will be higher as a result of VAT increase.
Daniel Ben Yehuda, General Manager of Ramada Plaza in Bucharest, 4 star classified, stated that the biggest challenge of the current year is dropping tariffs. If a better classified hotel cuts tariffs, the others will have to do the same.
Daniel Vasilescu, President of the National Association of Tourism Owners, FPTR, stated that tariffs lowered up to 40% in some cases, which resulted in no profit for some units. Moreover, the demand decreased this year by 30% compared to last year, stated Vasilescu.
However, several hotels managed to increase occupancy this year as a result of cutting tariffs. but revenues reached similar level or lower than last year.
Dropping tariffs impacted also the guests profile, so that in a 4 star unit one can meet both guests who previously stayed in 5 star hotels, but also guests from 3 star hotels, stated Yehuda.
In September 2009, there were 71 hotel units in Bucharest with 9,000 rooms, classified from 3 to 5 star. 4 star hotels prevail on the local market, which reflects the demand for accommodation for business purposes, approximately 80% of the tourists.
Sursa: Daily Business [01.07.2010]
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