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TOURISM OUTLOOK
GDP Outlook
-
200%
The economy of Ras Al Khaimah’s
growth over the past decade -
$9.8 billion
RAK GDP, 2018;
growing at 3% p.a -
3-4%
of the emirate’s GDP is attributed to the tourism sector
Direct tourism contribution to the GDP of the United Arab Emirates from 2012 to 2028 (in billion AED)*
Value in billion United Arab Emirate Dirham
Tourism is a significant contributor to the UAE’s economy
quick facts
REASONS TO
INVEST IN RAK
Even as it remains true to its rich heritage and natural resources, Ras Al Khaimah is constantly evolving and moving forward. The integrity of this approach is certainly an added incentive for investors
1.12m
Tourist
arrivals (FY 2019)
4,015
Rooms under
development
3.58m
Tourist
nights (FY 2019)
64
Kilometers
of beach
3.21
Tourist average
length of stay
1,934
Meters elevation
for Jebel Jais
6,673
Hotel
rooms
45
Minutes from
Dubai Intl. Airport
Growth trends
RAK has attracted
1.2 million
visitors in 2019 and is on track to achieve the arrival target for 2030
Revenue contribution to GDP target for 2030
AED 3.5 billion
20,000
Required rooms
INTERNATIONAL
PERFORMANCE
BY OCCUPANCY
Ras Al Khaimah performance
Stable occupancy of 74%, with an ADR* of $ 154, over the past 3 years compared to 23 cities.
Demonstrates that Ras Al Khaimah is steadily developing as an attractive destination.
Investors have taken notice of the government strategy to foster the development of the entire emirate via projects like the world’s longest zipline and the viewing deck, as well as a variety of others that support a continued growth trajectory.
*Average Daily Rate Source: JLL, Hotel Investment Study, 2019
Top 10 destinations
in occupancy
INTERNATIONAL PERFORMANCE BY REVPAR
Relative Performance
The RevPAR performance achieved in Ras Al Khaimah between 2016 and 2018 positions the destination amongst the top markets
Compared to prime European leisure destinations
Ras Al Khaimah has performed on par with some of the world’s most popular destinations.
Compared to other European destinations Ras Al Khaimah’s hotel market is generally outperforming even established European destinations in terms of top-line performance.
*Revenue Per Available Room Source: JLL, Hotel Investment Study, 2019
RevPAR: $119
PROFITABILITY LEVELS
Ras Al Khaimah top 3 destination in the 5-star gross operating profit margin
Ras Al Khaimah Fujairah, Maldives, Dubai, Muscat, Salalah, Sardinia, Dubrovnik, Mallorca, Abu Dhabi, Goa, Phuket, Seychelles, Algarve, Ibiza, Marbella, Athens, Cancun, Punta Cana, Nice, Bahrain, Sharm El Sheikh, Cannes, Canary Islands
5* hotel performance
Affordable labor expenses, coupled with the high RevPAR performance, ensure that Ras Al Khaimah can achieve the highest operating margins
Ras Al Khaimah top 10 destination in the 4-star gross operating profit margin
Cancun Ras Al Khaimah Fujairah, Abu Dhabi, Dubai, Goa, Phuket, Sardinia, Muscat, Salalah, Dubrovnik, Ibiza, Mallorca, Punta Cana, Athens, Marbella, Canary Islands, Nice, Algarve, Maldives, Sharm El Sheikh, Cannes, Seychelles, Bahrain
4* hotel performance
Aside from Cancun, Ras Al Khaimah records the highest GOP margin in the 4-star hotel segment.
Ras Al Khaimah top 3 destination in the 3-star gross operating profit margin
Ras Al Khaimah Cancun, Fujairah Dubai, Abu Dhabi, Salalah, Muscat, Goa, Phuket, Dubrovnik, Mallorca, Punta Cana, Athens, Marbella, Canary Islands, Ibiza, Nice, Algarve, Sharm El Sheikh, Bahrain, Maldives, Cannes, Seychelles
3* hotel performance
Ras Al Khaimah records the highest GOP margin in the 3-star hotel segment.
Source: JLL, Hotel Investment Study, 2019
DIVERSIFIED SOURCE MARKET
International vs domestic visitor arrivals, YTD 2022
The new strategic plan by the RAK Tourism Development Authority (RAKTDA) targets a more diversified tourist market base that stabilizes demand and reduces exposure to a small number of markets.
42%
221,092 International Arrivals
58%
299,993 Domestic Arrivals
International source markets
Market share
CURRENT ACCOMMODATION SUPPLY
Ras Al Khaimah (JULY 2022)
Total Room Keys
Hotel 3 Stars
Other
Hotel 5 Stars
Hotel 2 Stars
Hotel 4 Stars
Hotel 1 Star
As of July 2022, Ras At Khaimah has a total inventory of 8,130 keys and a total of 017 keys are under development in Ras Al Khaimah.
FUTURE ACCOMMODATION SUPPLY
Future supply (room keys) by category (2022 - 2023)
Total Room Keys
Hotel 3 Stars
Hotel 5 Stars
Other
Hotel 4 Stars
• Over the next 12-18 months, new brands such as Marta Mangrove, Anantara Mina AI Arab, Solitel. At Hamra Beach Resort (combined 732 keys. 2023), to name a few, will be added to the current RAK hotel inventory
• The multi-billion USD Integrated Resort – Wynn Resorts is slated to open in 2026 on At Marian Island with 1,000+ rooms, shopping mall, extensive MICE, spa, entertainment and a dedicated gaming area
• A total of 18 new properties are scheduled to be developed by 2026, with 4,617 keys expected to be added to the existing inventory
• The Introduction of new luxury brands such as Anantara Mina Al Arab Resort & Sofitel Al Hamra are expected to attract increased footfall from markets such as Switzerland & France etc in addition to growing visitation from our key source markets such as Russia, Germany, United Kingdom, Kazakhstan along with affluent Indian and Chinese travelers as well
• The Rotana Mangrove Hotel located in the city, will complement existing city hotels and cater to the MICE & Corporate segments along with guests from the Middle East & GCC region due to its cultural relevance & appeal