Events cancelled in Aberdeen as oil prices slump

Aberdeen hotel occupancy levels also see 3% drop


9 March 2015
The dramatic fall in oil prices has resulted in a reduction in the number of energy-related events in Aberdeen. Occupancy rates have similarly seen a drop, although room rates have continued to rise.
 
Aberdeen Exhibition and Conference Centre (AECC), which can be reliant on the energy sectors for up to 50 per cent of its turnover, says some oil companies have cut back on events in response to the fall in oil prices from around USD$110 (£73) per barrel to under USD$50 (£33) per barrel.
 
The city's hotels equally got off to a poor start to the year, according to the latest HotStats data, registering negative year-on-year comparisons across all key performance indicators - apart from the average room rate, which rose by 2.1%
 
Occupancy levels fell by 3 per cent in January, compared with the previous year, meaning the revenue per available room (RevPAR) fell by almost 3 per cent to £63.74. 
 
VisitAberdeen CEO Steve Harris said: “We remain very optimistic about the future of the meetings, conference and accommodation business in the city. Of course the oil and gas industry is important to us but the city is increasingly attracting business in other sectors. The industry is incredibly resilient and we fully expect it to recover.”
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