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    SMTE opportunity (1/5)

    HUMAN SLING SHOT / CATAPULT,BUNGEE JUMPING, GIANT SWING

    • 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.

    • 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)

    • 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

    nzcatapult
    jhill

    SMTE opportunity (2/5)

    CANYONING PARK

    • 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.

    • 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).

    • 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

    08

    SMTE opportunity (3/5)

    HORSE RIDING / STABLES

    • 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).

    • 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

    eastern-mangroves

    SMTE opportunity (4/5)

    MANGROVE ADVENTURE PARK

    • 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.

    • 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

    skydiving

    SMTE opportunity (5/5)

    AVIATION HUB

    • 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).

    • 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

    Theme-based attractions

    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.

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    Key elements

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    Summer concept

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    Winter concept