Oman became the most expensive country Muscat - Arabstoday Oman has been ranked the most expensive country in the world for UK travellers in 2011, according to the latest Hotels Price Index (HPI) by booking agency Hotels.com Average room rates in the Gulf state rose by19 percent from GBP£182 (US$288) per night in 2010 to £217 last year, soaring past the second-priciest destination Mauritius, where average rates were GBP£161. Muscat, Oman’s capital city, also witnessed a surge in room costs from GBP£185 per night in 2010 to GBP£219 in 2011, making it the most expensive city in the world for hotel accommodation after the European hotspot Monte Carlo. “Oman became the most expensive country after it posted the biggest increase in prices,” said the report. “This occurred after the development of more upscale accommodation and rising demand from European travellers.” However, the cost of hotels around the region saw a substantial dip in 2011, thanks mostly to the Arab uprisings which broke out at the beginning of the year, the report said. The steepest drop came in Qatar, where the average room rate fell 27 percent from GBP£169 to GBP£122, whilst in Egypt's rates slipped 22 percent to GBP£71 and in Lebanon prices declined 21 percent to GBP£111. Tunisia, the place where the protests first began, saw a 9 percent reduction to GBP£61, and in Saudi Arabia, falls of 8 percent to GBP£113 were recorded. The UAE saw a minimal price decline of 2 percent to GBP£116, but this was mostly due the large number of hotel projects under construction in the region, according to researchers. “The biggest fallers were in the Middle East, where the widespread political instability, civil unrest and the war in Libya led to a dramatic fall off in demand and a slump in prices,” added the report. “Travellers switched away from North Africa and the Middle East to ‘safer’ holiday destinations.”