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Although occupancy levels were at similar levels to August 2008, provincial hoteliers continued to compete on price, resulting in an 8.3% year on year drop in achieved average room rate to £64.51.
In contrast, the decline in average occupancy levels was only 0.6 percentage points, to 71.8%, representing the smallest margin of decline since the beginning of the year.
David Bailey, deputy managing director, TRI, said: "For once it is provincial hoteliers who are making the headlines and for all the right reasons. The UK's top tourism destinations have successfully attracted domestic holiday makers who have understandably been dissuaded from travelling abroad at this time by the high costs and unfavourable exchange rates."
Meanwhile despite major commercial-led city centres such as Newcastle and Liverpool continuing to experience declines in occupancy levels, at 2.8 percentage points and 3.3 percentage points, popular destinations for tourism such as Stratford-upon-Avon and Brighton enjoyed an increase in room occupancy levels in August 2009, compared to 2008.
The largest margins of growth in occupancy levels were in York, at 12 percentage points and Blackpool, at more than 9 percentage points.
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