According to the State Statistics Committee, in the first half of 2023, the revenues of hotels and hotel complexes in Azerbaijan increased significantly, amounting to a total of 209.3 million manats. This figure reflects a significant increase of 42.4% compared to the same period of the previous year. The breakdown of income for the six-month period showed that 60.1% of revenue accounted for services related to the provision of rooms, 27.4% - for catering services, 4.4% - for treatment and medical services and 8.1% - for other services. It is noteworthy that the indicator of the use of available capacity of hotels for the reporting period amounted to 16.6%, which is 4.2% more than a year earlier. At the regional level, various levels of hotel occupancy were observed in the hotel business, with the highest rate being in Naftalan - 43.4%, while in other cities and regions, such as Agjabadi and Shusha, it was below the national average. Rising energy and food prices have affected the hotel business, as hotels, like many other industries, face increasing costs for equipment, furniture and consumables. Consequently, hotels were forced to maintain their prices for services, despite declining revenues. There is a gradual return of tourists in Azerbaijan with the resumption of flights with some countries. However, the recovery in the number of visitors was slower due to the economic problems faced by potential tourists in some countries even after the pandemic subsided. As a result, there are relatively fewer guests in Baku hotels. On the contrary, regional tourism is showing signs of improvement, especially during the summer season. Local tourists are increasingly visiting the regions, and tours are organized on weekends and holidays, which contributes to the revival of the regional tourist market. One expert suggested increasing the role of municipalities in the development of tourism, as is observed in some other countries. These municipalities in tourist zones actively support the development of tourism and receive income from it, which is currently not a common practice in Azerbaijan. The Hyatt Regency Hotel faced higher purchase costs, but did not pass these increased costs on to its customers. Instead, they took on the costs themselves, which resulted in minimal profit during this period. Experts suggest several measures to remedy the situation, including promoting local products of Azerbaijani producers and ensuring that hotel staff have versatile skills to work in various departments. They believe that if market prices continue to rise, it is likely that the cost of hotel services will also increase, which will further affect the profitability of the industry.
Source: Turan News Agency