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Dark summer for Swedish hotels sector

Thursday, 22 September 2011
Although spending a night in a Swedish hotel is a very expensive issue, it was expected that the summer will boost the difficult sector. But it turned out just the opposite as the summer became so tough for hotels in major cities.

The number of empty rooms increased in Stockholm, Gothenburg and Malmo, and hotel revenue per room fell. One joy was that more long-distance tourists found their way to Sweden they were not enough to pay much to make the weak side turn around.

Occupancy during the summer fell in all three major cities, a total of 3.4 percent. And revenue per available room rates plummeted by as much as 4.0 percent, compared to the summer of last year.

In Stockholm and Malmö, however, there was increased demand for hotel rooms, while there was decrease in Gothenburg. But the expansion of hotel capacity in Stockholm and Malmö were greater than the increase in demand and this explains the lower gains.

Bjorn Arnek, industry economist at the Swedish Hotel and Restaurant Association, says that the lower occupancy rate is not obviously meant that profitability will continue deteriorating. In the long term there will be the need in the big cities more hotel rooms.

"An increase in hotel capacity means that cities have a greater opportunity to win major international events," he said in a statement.
The hotels in Stockholm, Gothenburg and Malmö had a sharp increase in visitors from outside Europe. At the same time there was a drop in hotels bookings in Stockholm and Gothenburg in from Scandinavian visitors.
By Scancomark.se Team

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