SMTE opportunity (1/5)
HUMAN SLING SHOT / CATAPULT,BUNGEE JUMPING, GIANT SWING
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Market size
Based on maximum capacity, the potential number of annual ticket sales is 42,000 (equivalent to 4% of the total number of visitors to Ras Al Khaimah in 2018). This number does not account for visitors utilizing the product from outside of Ras Al Khaimah, which could be significant.
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Market growth rate
The global adventure travel and tourism CAGR currently stands at 17.8%, and the number of visitors to Ras Al Khaimah is currently growing at 10% (2017-18)
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Profitability
Low operating costs (minimal utility requirements, low consumable and maintenance rates, and non-intensive staffing requirements), along with the potential to charge relative premiums per experience due to the product’s novelty factor.
With a high occupancy rate, the Giant Swing can potentially draw a gross profit margin of some 40%.
Tourism product
Human slingshot, bungee & giant swing
Estimated number of users (per year)
25,200
Average spend (per visit / AED)
655
Anticipated CAPEX (AED)
26,850,000
Anticipated revenues (per year / AED)
16,506,000
Anticipated OPEX (per year /AED)
13,413,900
Source: Extreme International LTD, RAK – Product Development Study, 2019
SMTE opportunity (2/5)
CANYONING PARK
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Market size
Based on maximum capacity, the potential annual ticket sales stand at 350,000 (equivalent to 33% of the total number of visitors to Ras Al Khaimah in 2018). This number does not account for visitors utilizing the product from outside of Ras Al Khaimah, which could be significant.
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Market growth
rate
The global adventure travel and tourism CAGR currently stands at 17.8%, and the number of visitors to Ras Al Khaimah is currently growing at 10% (2017-18).
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Profitability
Average operating costs (utility requirements, consumables and maintenance rates, and low staffing requirements), in addition to the potential for charging relative premiums per experience due to the product’s novelty factor.
With a high occupancy rate, the Canyoning Park can potentially draw a gross profit margin of some 15%.
Tourism product
Canyoning park
Estimated number of users (per year)
52,500
Average spend (per visit / AED)
350
Anticipated CAPEX (AED)
32,800,000
Anticipated revenues (per year / AED)
18,375,000
Anticipated OPEX (per year /AED)
16,142,500
Source: Extreme International LTD, RAK – Product Development Study, 2019
SMTE opportunity (3/5)
HORSE RIDING / STABLES
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Market size
Based on maximum capacity, the potential annual ticket sales stand at 42,000 (equivalent to 4% of the total number of visitors to Ras Al Khaimah in 2018). This number does not account for visitors utilizing the product from outside of Ras Al Khaimah, which could be significant.
The global adventure travel and tourism CAGR currently stands at 17.8% and the number of visitors to Ras Al Khaimah is currently growing at 10% (2017-18). -
Market growth
rate
Horse riding offers marginal growth potential, and the expected CAGR should be approximately 5%, a number that reflects the market’s view of the activity (not necessarily suitable for everyone).
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Profitability
Relatively low operating costs (utility requirements, low consumable and maintenance rates, and low staffing requirements), along with the potential to charge relative premiums per experience due to the product’s novelty factor.
With a high occupancy rate, horse riding can potentially draw a gross profit margin of some 15%.
Tourism product
Horse riding / stables
Estimated number of users (per year)
6,300
Average spend (per visit / AED)
840
Anticipated CAPEX (AED)
13,475,000
Anticipated revenues (per year / AED)
5,292,000
Anticipated OPEX (per year /AED)
5,051,900
Source: Extreme International LTD, RAK – Product Development Study, 2019
SMTE opportunity (4/5)
MANGROVE ADVENTURE PARK
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Market size
Based on maximum capacity, the potential annual ticket sales stand at 420,000 (equivalent to 39% of the total number of visitors to Ras Al Khaimah in 2018). This number does not account for visitors utilizing the product from outside of Ras Al Khaimah, which could be significant, especially with school groups from Dubai and Abu Dhabi.
The global adventure travel and tourism CAGR currently stands at 17.8% and the number of visitors to Ras Al Khaimah is currently growing at 10% (2017-18). -
Market growth
rate
The Mangrove Adventure Park offers steady growth potential, and the expected CAGR should be around 15% once the market realizes the value of the concept, from both an active and educational perspective.
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Profitability
Low operating costs (minimal utility requirements, low consumable and maintenance rates, and non-intensive staffing requirements), along with the potential to charge relative premiums per experience due to the product’s novelty factor.
With a high occupancy rate, the Mangrove Adventure Park can potentially draw a gross profit margin of some 30%.
Tourism product
Mangrove adventure park
Estimated number of users (per year)
63,000
Average spend (per visit / AED)
225
Anticipated CAPEX (AED)
24,550,000
Anticipated revenues (per year / AED)
14,175,000
Anticipated OPEX (per year /AED)
13,086,250
Source: Extreme International LTD, RAK – Product Development Study, 2019
SMTE opportunity (5/5)
AVIATION HUB
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Market size
Based on maximum capacity, the potential annual ticket sales stand at 98,000 (equivalent to 9% of the total number of visitors to Ras Al Khaimah in 2018). This number does not account for visitors utilizing the product from outside of Ras Al Khaimah, which could be significant.
The global adventure travel and tourism CAGR currently stands at 17.8% and the number of visitors to Ras Al Khaimah is currently growing at 10% (2017-18). -
Market growth
rate
The activities and products that comprise the Aviation Hub offer marginal growth potential, and the expected CAGR hovers around 5%, a number that reflects the market’s view of the activity (not necessarily suitable for everyone).
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Profitability
Relatively low operating costs (minimal utility requirements, low consumable and maintenance rates, and non-intensive staffing requirements); along with the potential to charge relative premiums per experience due to the product’s novelty factor.
With a high occupancy rate, the Aviation Hub product can potentially draw a gross profit margin of some 20%.
Tourism product
Aviation hub
Estimated number of users (per year)
14,700
Average spend (per visit / AED)
1,025
Anticipated CAPEX (AED)
26,300,000
Anticipated revenues (per year / AED)
15,067,500
Anticipated OPEX (per year /AED)
13,390,625
Source: Extreme International LTD, RAK – Product Development Study, 2019
Ras Al Khaimah encourages innovative product offerings that deliver a unique holiday experience.
EXAMPLE: With the amenities of a boutique hotel and choice of location, pop-up hotels provide an exceptional opportunity for a customized holiday experience.