Bucharest Hotels See 20-Year Low In January ’10 Load Factor

"January 2010 was the poorest month in the past 20 years for Bucharest hotels, with respect for the load factor as well as regarding the average fees," Rijnita said.

He added that in January the average load factor dropped below 30%, an unprecedented level since 1989.

"With such a load factor, hotels can barely cover their utilities bills and partially pay salaries. There can be no question of paying the debts to the state. Many hotels have closed entire floors, and the rooms entered conservation," the official said.

According to Rijnita, in December 2009 and January 2010 there were more than 3,000 rooms going in conservation, from a total number of more than 10,000 hotel rooms available in Bucharest.

"This dramatic decrease started in December last year and grew in January. Many of the hotels have laid off staff or applied furlough for some of their employees," Rijnita went on saying.

At the same time, in January 2010, there was a decrease in fees, an average 25-30% drop compared to January 2009.

January continues the downward trend seen last year. The number of tourists entering Romania was 12.8% lower in December 2009 compared with the same month a year before, while the number of tourists accommodated was down 17.9% on the year, the National Statistical Institute, or INS, said Thursday.

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