Hotel prices worldwide increased by 2% in the second quarter of 2010 compared with the same period last year, according to an industry report.

The hotel price index recorded it as the first rise since 2007, with figures attributed to the improved economic situation.

The highest average prices are in hotels were recorded in the Italian island of Capri, Switzerland and New York, with the most expensive hotels in Capri where an average price for a room per night is $267.

Bali recorded the highest increase in prices by 57%, while prices in Cape Town increased by 53% to $180 per night due to the FIFA World Cup 2010.

Iceland’s capital Reykjavik saw an 18% fall in prices due to problems caused by this year’s volcanic ash clouds.

Prices also dropped in Moscow, Dubai, Budapest, Copenhagen, Cancun, Athens, Taipei and Dublin, according to