Opening of new hotels in Baku & Azerbaijan will cut room rates

Ministry of Culture and Tourism of Azerbaijan has made a monitoring to current room rates in Baku hotels and published the results disclosing the main reasons of high room rates. The major reason according to Ministry's experts is  lack of competition in hotel business and deficit of hotels in growing Baku. From the early years of independence Azerbaijan could not boast of many hotels, the supply of quality hotel premises was scarce and most of them never were up to high international standards. That was explaining the the rocket high prices in Hyatt Regency Hotel and Grand Europe Europe hotel in those years. And  that was the major factor why those and other hotels were able to keep the rates high, perfectly realising that visitors to Baku had no other options. Obviously, with number of hotels in Baku growing every year situation looks much better now, rates tend to take a reverse direction and hotels start competing for the customer.

Azerbaijan encourages investments into the tourist sector and now we can see the noticeable difference. If there were less than 100 hotels and guest houses in Azerbaijan in early 90-s today there are 499 of them. And this of course leads to growing competition, said an official from the Ministry.

"There was only Hyatt Regency before, and all those tourists had no chance but to stay there. Today Baku is hosting largest international hotel chaind. A new Kempinski hotel has been opened recently, new Four Seasons hotel is expected to open later this year - the first Four Seasons hotel in post-Soviet space. Then "Mariott" hotel  would be opened soon, and former Moscow hotel would be replaced with Flame Towers Hotel. As a result tourists would have a wider option to choose from. New hotels would consequently ;eade to higher standards of service and would be forced to lower rates to attract customers. By inviting more hotels we will create such a competitve environment that would result in lower rates and higher standards of service.

Even today prices in 5* hotels in Baku are close to those in similar hotels in other countries.

Ministry's official also reiterated the importance of competition among restaurants. As with hotels Azerbaijan had just several restaurants before meeting international standards, but now there are many of them specialising on Italian, Brasilian, Chinese, Japanese and other cuisines.

 

 

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