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04. 02. 10. - 16:00

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04. 02. 10. - 16:00

Bucharest hotels have worst month in 20 years

Romanian Times

January 2010 was the poorest month in the past 20 years for hotels in Bucharest, according to hospitality industry officials.

Hotels were forced to close about 30 per cent of their rooms due to an average load factor below 30 per cent, according to Mediafax.

Mihai Rijnita, Hotel Industry Federation secretary general, said today (Thurs): "January 2010 was the poorest month in the past 20 years for Bucharest hotels in regard to load factor and turnover."

He added that in January the average load factor had dropped below 30 per cent, a level unprecedented since 1989.

"With such a load factor, hotels can barely pay their utilities bills and partially pay salaries. There can be no question of paying debts to the state. Many hotels have closed entire floors."

According to Rijnita, in December 2009 and January 2010, more than 3,000 rooms of a total number of more than 10,000 hotel rooms in Bucharest went into conservation.

Rijnita said: "This dramatic decrease started in December last year and grew in January. Many hotels have laid off staff or applied for furloughs for some of their employees."

At the same time, in January 2010, there was an average decrease in turnover of 25 to 30 per cent drop compared to January 2009, he said.

January continued the downward trend that began last year. The number of tourists entering Romania was 12.8 per cent lower in December 2009 compared to the same month a year before, while the number of tourists accommodated was down by 17.9 per cent year on year, the National Statistical Institute announced today.

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