Why do hotels report 20% occupancy?

Baku/01.08.23/Turan: Tourism indicators in Azerbaijan have shown a notable upturn, according to recent data from the State Statistics Committee. As of July this year, revenues from hotels and similar establishments in the country during the first half of 2023 amounted to 209.3 million manats ($123.1 million), marking a significant 42.4% increase compared to the same period in 2022. Moreover, hotel revenues in 2022 totaled 355.3 million manats ($209 million), which was 1.7 times higher than the figures recorded in 2021.

However, despite the encouraging revenue growth, data from the same State Statistics Committee reveal concerning levels of tourism activity. In 2022, only 15.7% of hotel rooms in Azerbaijan were occupied, with a staggering 84% remaining vacant. This figure, though slightly improved from the 11.1% occupancy rate in 2021, still reflects low utilization of hotel facilities.

Muzaffar Agakerimov, an adviser to the chairman of the Association of Travel Agencies of Azerbaijan, attributed the conflicting data to the low professionalism of hoteliers who reportedly provide inaccurate information to the State Statistics Committee. He pointed out that hotel occupancy rates fluctuate depending on the season, with fewer tourists visiting during colder periods. Hoteliers, however, tend to provide average figures for the entire year, leading to the impression of low occupancy rates.

Despite this discrepancy, Agakerimov asserted that Baku hotels are experiencing high occupancy, with a noticeable influx of tourists from Russia. He expressed optimism about the growth of domestic and foreign tourism in Azerbaijan, even with land borders closed due to the pandemic. Agakerimov predicted that Azerbaijan would emerge as a regional leader in tourism development and emphasized the need for more two- and three-star hotels to cater to the rising demand for affordable accommodations in the country.