RAK's tourism sector on a roll

Ras Al Khaimah's booming tourism sector is showing no signs of slowing down, and the emirate continues to draw an increasing number of visitors from emerging markets such as Russia, Poland and India.

CBRE's Q1 2017 RAK MarketView report found that visitors from the UAE, Germany, Russia and the UK remained the key source markets for the emirate. Experts have highlighted the recent launch of several new offerings as one of the main reasons behind the successes of the emirate's tourism sector.

"It is an exciting time for the tourism industry of Ras Al Khaimah, with the increased focus on Jebel Jais and active adventurers over the last 12 months, and with further products to be introduced later this year, the appeal of the emirate as a year-round destination, offering more than just sun and sand, is attracting increasing visitors and tourism investors," Haitham Mattar, CEO of the Ras Al Khaimah Tourism Development Authority (RAKTDA), told Khaleej Times.

Ras Al Khaimah's tourism industry witnessed a tremendous growth of 8.7 per cent between 2014 and 2017, surpassing that of the UAE, which has grown 5.7 per cent in the same period. Last year represented a strong year of growth for Ras Al Khaimah, not just in terms of the increased visitor numbers that surpassed 820,000 - an increase of 10.9 per cent on the year before - but also the emirate's hospitality portfolio. The emirate is emerging as a major hub for hotel investment with a projected pipeline of 10,200 keys, which puts it in a leading position in the UAE.

Mat Green, head of research and consulting for the UAE region at CBRE Middle East, also noted that Ras Al Khaimah's hospitality market has witnessed a solid start to the year, with over 193,000 visitors recording more than 758,000 guest nights. This is a reflected growth of 8.3 per cent and 18.7 per cent growth in visitor arrivals and guest nights, respectively, on a year-on-year basis.

Ras Al Khaimah's encouraging tourism trends have also translated into solid hotel occupancy and revenue performances. According to data from STR, average occupancy rates were up 6.8 per cent year-to-date over the January-March period from 71.3 per cent to 76.3 per cent, versus the same period last year, whilst revenue per available room (RevPAR) rose 2.3 per cent during the same period. This was despite a four per cent decline in average average daily rates (ADR), which continued to fall. Overall room revenues also rose, up 8.1 per cent on the same period last year.

"This year has begun strong, with year-to-date international arrivals up by 11 per cent compared to the first four months of last year. The emirate achieved the second highest ADR and RevPAR, and third highest occupancy rates in GCC, according to latest STR report," Mattar said.

As the emirate draws closer to reaching the its one-million visitor target by the end of 2018, the need for quality hotel rooms has never been so important, he added. "Currently offering just over 5,000 hotel rooms, Ras Al Khaimah's increasing hotel and resort portfolio is expected to grow by more than four thousand rooms over the next three years, across various categories, with a number of opportunities still available for further investment in Ras Al Khaimah's hospitality landscape. We are working closely with travel and tourism stakeholders to ensure we attract the right brands and accommodation options to support sustainable growth across the emirate."

Around 500 new hotel and hotel apartment keys are expected to be completed over the remainder of 2017, with a similar figure to be completed in 2018. This includes the Hilton Garden Inn and the expansion of the Cove Rotana, which are both due open in 2017, and the CityMax hotel that is expected to be delivered in early 2018. Crowngate International also broke ground recently on its Avani Resort on Al Marjan Island, which is at the heart of Ras Al Khaimah's aspiration to redefine the local hospitality sector.

"As the key tourism destination in Ras Al Khaimah, Al Marjan Island offers the perfect location for our project, which will firmly position us in an area expected to witness high demand and tremendous tourism growth in the years to come. Offering a budget-friendly option for discerning travellers, our four-star resort captures a previously untapped market, and we cannot wait to welcome the first guests in 2019," said Joe McCormack, founding partner of Crowngate International.

Al Marjan Island accounts for 78 per cent of upcoming hotel room supply in the emirate. Only a short drive away from hectic city life, it is set to evolve as a favourite destination for staycations and international visitors alike. The destination is a popular choice among the domestic UAE market, which continues to represent Ras Al Khaimah's largest source market representing 40 per cent of visitor arrivals year-to-date.

Recently released statistics by Colliers International showed that beach resort guests now contribute more than 80 per cent of visitors to Ras Al Khaimah's. While two thirds of the upcoming hotel inventory represent the five-star segment, the emirate has been seeing rapidly increasing demand from cost-conscious tourists looking for premium four-star options at competitive rates.

Source: Khaleej Times