| The tourist accommodation industry fared worst | | | | for 2008 as a whole. |
| than expected in 2008 after a particularly difficult | | | | Overall, the tourist accommodation market fared |
| operating environment in the second half of the year. | | | | worst than initially expected largely because of the |
| The outlook for 2009 appears even darker mainly | | | | domestic and European travel market as residents |
| because of the European and national economy slow | | | | opted to holiday at home. Short-term resident arrival |
| down resulting in reduced visitor arrivals. Furthermore, | | | | fell by 2% in 2008 per the National market, extending |
| additional room supply and competition between the | | | | the weak trend at least until 2009. Domestic and |
| different types of accommodation offered will keep | | | | foreign visitor nights in hotels, motels and |
| room rate drops in check. | | | | guesthouses and serviced apartments in Bucharest |
| Industry weathers difficult operating environment | | | | dropped by 2.8% in 2008. |
| We thought operating conditions were tough in 2008 | | | | In terms of room supply, the serviced apartment |
| but 2009 proves to be another challenging year for | | | | market in Bucharest saw a sharp increase in supply |
| the tourist accommodation industry with the | | | | reflecting its increasing popularity. |
| international financial crisis, the impact of the recent | | | | The hotel segment will not recover from the poor |
| Russia-Ukraine gas disputes and the Middle East | | | | showing in 2008. The average room rate dropped by |
| conflict overseas visitor arrivals plummeting. | | | | around 8% in Bucharest, caused in part by the |
| International visitor arrivals dropped by 8.9% in the | | | | increase in the number of hotel rooms as |
| six months from June | | | | refurbishments was being finished. Conventions and |
| Yet, room occupancy rates for hotels held well with | | | | big events did not absorb supply as usual, causing the |
| the average rate for the first half of 2008 at 62.3%, | | | | drop in rates. |
| down 6.8% points from the same period in 2007 and | | | | Bitter prospects ahead |
| that for motels & guesthouses was down 1.9% | | | | The outlook for the tourism accommodation sector |
| point. Serviced apartments fared slightly better with | | | | appears darker with the number of foreign visitor |
| an average occupancy rate of 64.4%, down 1.4% | | | | arrivals expected to drop after two years of |
| points. | | | | economical decline in the EU and US. This scepticism is |
| The second half of 2008 became less active in the | | | | underpinned by a global economic slow down and the |
| hotels, motels & guesthouses and serviced | | | | international financial crisis. |
| apartments market with the average room | | | | According to the Bucharest Serviced Apartments |
| occupancy rate and average takings per room night | | | | Company (BSAC) international visitor arrivals are |
| occupied down 4.3% points and 8.6% on the year | | | | projected to drop by 9.9%, bringing the total number |
| second half respectively. This caused a weaker | | | | of visitors in Bucharest to 1.2 mn in 2009. |
| performance for the tourist accommodation market | | | | |