Istanbul ranks third among European cities in terms of the increase in revenues per available room in 2007, consulting firm Deloitte announced in a report.
Turkey's most populous city ranks 20th in the global list. Istanbul increased its revenues per available room by 22.1 percent in U.S. dollar terms, rising above the average of Europe, according to Deloitte's “Hospitality Vision - Global Performance Review” report, which evaluates the past year for the global hospitality sector.
“The East-meets-West charms of Istanbul and its promotion as a center for art and culture has assisted this growth,” said Deloitte in the report, noting that Istanbul's average room rates are more competitive than its rivals. Demand is high from Middle East business travelers, particularly in the summer, according to the report published Tuesday.
Istanbul attracts attention as a symbol of the nation's success, said Ahmet Cangöz, Hospitality Industry Leader at Deloitte Turkey. “Istanbul climbed 12 ranks to 20th spot [in global ranking] since 2000. It is becoming a rising star of global tourism,” he said. “The fact that Istanbul has been elected the European Capital of Culture for 2010 offers new opportunities.”
Hospitality sector, which displayed a high performance in terms of average revenues per room and occupancy rates in 2007, attained double-digit growth rates, Deloitte said. Average revenue per hotel room in Europe rose by 15.8 percent to $114, according to the report, in which 165 countries outside North America are compared.
According to the European ranking, Moscow tops the list of revenues per available room with a 23.5 percent rise. Paris ranks second with an increase of 23.2 percent, just ahead of Istanbul. Venice and London follow Istanbul with 22 percent and 18.5 percent increases respectively.
Seven out of top 10 cities that obtain highest hospitality revenues are European cities, said Cangöz. Europe is still the heart of tourism and remains a favorite destination for travelers, he said.
The Deloitte report also focused on the positive impact of “open skies” agreement.
“We will see more competition as transatlantic air travel is liberalized through the ‘open skies' agreement,” the report said. “With European airlines now being able to fly to the United States from any European airport and not just their home country, we expect to see a scrabble for flights to and from Europe's major hubs. Airlines are collaborating with former rivals to create competitive schedules, and all of this is good news for the consumer.”