The new HotStats data shows that revenue per available room (RevPAR) in Dubai , UAE is declined by 6.6 percent to $340.06 in November 2014.

The contraction in room revenues was due to a softening of occupancies which retracted by 1.1 percentage points to 86.7%, but led largely by a decline in average room rates (ARR) of 5.5% to US$ 392.37.

The drop in room revenues also caused a decline in total revenues per available room (TRevPAR) by 2.3% to US$ 602.70, but was compensated in some part by an increase in food and beverage revenues that rose by 4.8% for the period. Profitability levels were under pressure as some key cost items such as payroll and sales and marketing inched higher for the period, causing gross operating profit per available room (GOPPAR) to contract by 4.3% to US$ 316.36.

The largest impact was seen through the deterioration of political and economic conditions in Russia and some eastern European countries that drive significant demand to the city.

“The declining Rouble and higher rates in Dubai appears to have made many of them reconsider their trip to Dubai, but also diverted some traffic to Sharm El Sheikh and Istanbul which offer a better value proposition.

The number of bookings from Russian travellers to Dubai was down by more than 50 percent in the last two months because of the falling rouble and oil revenues, according to Igor Egorov, the chairman of the Russian Business Council in Dubai.

Passenger traffic related to Russia and other countries in the Commonwealth of Independent States plunged 18.2 percent from a year earlier in November, Dubai Airports said.