A FRESH report has confirmed the gloomy picture facing Aberdeen's hospitality sector as problems in the oil and gas industry continue to bite.
A survey by accountants PricewaterhouseCoopers (PwC) found that the city has experienced a double-digit drop across both occupancy levels and revenue per available room rates, echoing a report by Accountants BDO earlier this month.
The survey found that occupancy levels across the city’s hotel sector fell by 12.9 per cent to 67.2 per cent in the year to July 2015, with revenue dropping by 21.4 per cent to £59.26.
In comparison, the UK average for 2015 is 84.4 per cent and £77.45.
Kevin Reynard, office senior partner, PwC in Aberdeen, warned: “The impact of lower oil prices is slowly filtering through to the wider North-East economy, and as a result, we’re seeing a drop in demand for hotel rooms from the oil industry, in particular.
"In the last year alone we’ve seen the offshore oil industry contract by as much as 65,000 jobs – from oil and gas employees and the wider supply chain to others indirectly impacted across sectors such as engineering and hospitality.
“For a sector that has geared itself up to support a huge transient workforce as well as industry visitors, this is a major dent that, despite the rebalancing of room rates, won’t easily be filled by tourism alone."
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