Aberdeen had the largest fall in hotel occupancy and revenue of anywhere in the UK, new figures have shown.
The latest report by accountants and business advisers, BDO LLP, showed occupancy in the Granite City fell by 19.7% compared with 2014.
Meanwhile revenue fell by 45.7% from £79 to £43 in 2015.
The figures were for the month of October in 2015.
In comparison, Edinburgh saw occupancy fall 4.5% while in Glasgow there was a drop of just 1.4%.
Alastair Rae, a partner in the Property, Leisure and Hospitality sector at BDO, said: “The substantial drop in occupancy and revenue in Aberdeen is not just down to the weakened oil price and its consequent dampening of demand in the city.
“Clearly, however, part of the drop is down to the declining oil price and the reduced activity of the sector which looks likely to continue for some considerable time to come.
“Glasgow fared better than elsewhere in Scotland experiencing a good increase in revenue of 5.8%. The reduced occupancy figure of 1.4% was probably a reflection of the higher revenue numbers as the two figures work in tandem.”
“The fall in occupancy and revenue in Edinburgh is perhaps an early indication of consumer confidence being slightly dented in the autumn and a small reduction in leisure activity.
“Inverness continued to have a good year and has the best occupancy and revenue to date figures for 2015 of any of Scotland’s main cities. Occupancy in Inverness has risen 6.3% and by 5.2% to the end of October contrasting with a 14.4% decline in occupancy and an 18.3% fall in revenue in Aberdeen. Edinburgh has had a 2.2% rise in occupancy and a 1.2% rise in revenue to date while Glasgow has had a fall in occupancy of 0.1% and revenue down 1.9% during 2014.
“While Edinburgh experienced a fall in occupancy and revenue this is in line with expectations for the time of year and I don’t believe indicates anything more serious. The overall results are fairly normal.
“This was perhaps a flatter month than some but, apart from Aberdeen, there is nothing to be concerned about. We will have to see what impact the growing concerns over the wider economy have on the Scottish hospitality sector in the next few months.”
Earlier this week business owners in Aberdeen spoke about the impact of the oil price decline on their businesses.
Energy Voice’s sister publication, The Press and Journal, revealed earlier today the long-awaited City Region Deal for the north-east has been announced – and could be finalised within days.
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