Moscow named costliest city for business travellers, Abu Dhabi is the second

Moscow has again been named as the world's most expensive city for business travellers, according to the latest research. The Russian capital topped the list despite a 14 per cent drop in room rates between January and June this year, compared to the same period in 2008. The average room rate fell from £312.92 in 2008 to £268.11 in 2009, according to the bi-annual hotel survey by Hogg Robinson Group (HRG), an international business travel company. It blamed the drop in Moscow's average room rates on a fall in demand from within the banking and finance sectors due to a spate of new hotel openings in recent years. However, Moscow may soon lose its title to Abu Dhabi, which stands at number two in the list. The capital city of the UAE has climbed the list, thanks to a 38 per cent increase in the city's average room rate, compared to the same period in 2008. The survey found that demand for hotel rooms continues to outstrip supply in a number of Middle Eastern countries, with the exception of Dubai which has continued to suffer a fall in demand from the banking and finance sector, coupled with an exodus of expatriate and migrant workers due to the economic slowdown. As a result, hotel rates have fallen by 24 per cent over the period. London saw a relatively small fall in the average room rates (from £160.76 to £155.49) - down four per cent on the same period last year, while Mumbai, whose average room rates fell by 16 per cent to £169.19, dropped from tenth to sixteenth on the list.