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Apartment occupancy rate drops during Haj
(MENAFN- Arab News) The occupancy rate of furnished apartments in Riyadh has dipped amid competition offered by new high-rise accommodation which is being offered at lower rates.
The Saudi Commission for Tourism and Antiquities (SCTACA) inspectors seemed disappointed at the low turnout of customers in the furnished apartments.
Saad Al-Mahana director general of the SCTA's branch in the capital city said inspections are generally carried out during the holidays when a large number of tourists seek out furnished apartments for lodging purposes.
An Egyptian manager of a furnished apartment said that he charged SR200 per day for a room but there was only a 20 percent occupancy rate which was making it difficult to pay overheads.
'With our current occupancy rate we are incurring losses because the revenues generated from room occupancy are insufficient to pay for operating expenses and overheads' he said.
He said the overhead costs may not be a problem for some because they paid small salaries. 'Their main worry would be maintenance costs such as electric bills' he observed.
The supervisor of another furnished apartment in the same district added that their accommodation facility is also suffering from low occupancy and that the owners are pressing them for more customers.
'It is hard on us. Competition has become stiff with many accommodation facilities having been constructed in recent days and what exacerbates the situation is that they are offering lower rates' he said.
He added that he's hoping that walk-in customers from the Saudi capital or other parts of the Kingdom will check in for the duration of the Eid holidays.
'Earlier today a walk-in customer checked in just to be alone during the Haj holidays. We're hoping that there will be more walk-in customers like him' he said.
The Saudi Commission for Tourism and Antiquities (SCTACA) inspectors seemed disappointed at the low turnout of customers in the furnished apartments.
Saad Al-Mahana director general of the SCTA's branch in the capital city said inspections are generally carried out during the holidays when a large number of tourists seek out furnished apartments for lodging purposes.
An Egyptian manager of a furnished apartment said that he charged SR200 per day for a room but there was only a 20 percent occupancy rate which was making it difficult to pay overheads.
'With our current occupancy rate we are incurring losses because the revenues generated from room occupancy are insufficient to pay for operating expenses and overheads' he said.
He said the overhead costs may not be a problem for some because they paid small salaries. 'Their main worry would be maintenance costs such as electric bills' he observed.
The supervisor of another furnished apartment in the same district added that their accommodation facility is also suffering from low occupancy and that the owners are pressing them for more customers.
'It is hard on us. Competition has become stiff with many accommodation facilities having been constructed in recent days and what exacerbates the situation is that they are offering lower rates' he said.
He added that he's hoping that walk-in customers from the Saudi capital or other parts of the Kingdom will check in for the duration of the Eid holidays.
'Earlier today a walk-in customer checked in just to be alone during the Haj holidays. We're hoping that there will be more walk-in customers like him' he said.
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