Dubai has been named the fourth most expensive destination in the world to spend a night in a hotel in a new index compiled by Bloomberg.
San Francisco was ranked the world’s most expensive with the average price for a hotel room in the US city jumping 88 percent in the past year to $397 a night.
According to the index of the world’s top 100 financial centres, it ranked ahead of Geneva ($292 a night) Milan ($271) and Dubai ($255).
The index revealed that Dubai hotel rates have dropped by 6.4 percent in the past year.
Average daily rate in Dubai has fallen from $273 to $255, according to the index.
Commenting on the index, Chris Hewett, associate director, TRI Consulting told Hotelier Middle East: “Hotel rates in Dubai have reduced primarily due to the drop in demand from Russia as well as the weaker Euro, which had impacted the spending power of European visitors.
“The decline in demand from these strong markets has forced hotels to lower room rates in order to maintain market share as well as look into alternative source markets which might not necessarily have the same rate premium.
“Furthermore, the increase in supply is having a secondary impact as new hotels, particularly in the mid-market segment, adopt aggressive pricing strategies in order to penetrate the market and secure their fair share of demand.”
Earlier this month, Dubai was named among the 10 most expensive destinations in the world by TripAdvisor.
The TripIndex Cities 2015 destination list, which comprised 59 key cities, ranked Dubai ninth, with the cost of a three-day break calculated at $1,523.82.
The emirate, which is targeting 20 million annual tourists by 2020, was still well behind the cost of visiting Cancun, Mexico of just over $2,000.
Zurich, New York, London and Punta Cana in the Dominican Republic completed the top five most expensive destinations in the world.
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