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Cheap accommodation to force hotel owners to cut price

26 July 2016 12:55 (UTC+04:00)
Cheap accommodation to force hotel owners to cut price

By Rashid Shirinov

If cheaper accommodation objects are built in Baku and regions then hotels will reduce prices for rooms, believes Muzaffar Agakarimov, the adviser of the Chairman of the Azerbaijani Tourism Association.

Agakarimov, talking to Trend, mentioned that high price is usually linked with market economy. However, if anyone decreases the price of a good or service, other players of the market are also obliged to do that.

“If cheaper hotels are built in Baku and regions, then expensive hotels will reduce their prices. And while such hotels are not built, prices will remain unchanged,” Agakerimov stated.

The more one- and two-star hotels and hostels are constructed, the stronger competition will be. That will lead to cheaper accommodation prices.

However, Agakerimov complained that such a trend has not yet started in Azerbaijan. He is sure that local entrepreneurs should be provided with appropriate conditions and a stimulus for construction of such accommodation facilities.

Allocation of a land plot on favorable terms and provision of tax benefits for entrepreneurs, who are involved in the construction of one - and two-star hotels and hostels, maybe helpful, according to him.

Today, there are about 570 accommodation facilities and 300 travel agencies in Azerbaijan. The prices for hotels and hostels became even more attractive for the foreign visitors due to the devaluation of the national currency in 2015.

The provided accommodation establishments are of any price range, starting from just $6-7 per a night in hostel and $25 in hotels.

The country offers a series of luxury hotels – Jumeirah, Excelsior, Hilton, Four Seasons, Fairmont, JW Marriott, Kempinski, as well as many budget hotels for cost-conscious travelers. So far, 106 hotels and hotel-type facilities have passed the classification in Azerbaijan to obtain the certificate of conformity for a particular star category.

Local hotels usually have no empty rooms on weekends because many people travel to the country’s regions on Saturdays and Sundays.

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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov

Follow us on Twitter @AzerNewsAz

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