Green...'RAK will see a major market shift in coming years'
RAK hospitality market posts robust growth
RAS AL KHAIMAH, February 20, 2017
Ras Al Khaimah's hospitality sector witnessed solid growth, recording a 10.9 per cent increase in full year visitor arrivals and a 9.8 per cent jump in occupancy rate, taking the annual occupancy to 71 per cent, according to a report.
According to the latest Ras Al Khaimah MarketView by global real estate consultancy firm CBRE, the emirate’s hospitality market maintained positive growth into the final quarter, recording an average occupancy rate of over 73 per cent during the final three months of the year.
The emirate’s overall performance has remained strong, with hotels posting growth across the key RevPAR metric, led by the positive occupancy growth, after a 4 per cent decline in ADR’s during the same period.
According to figures from RAKTDA, visitor numbers have also risen during the year, with guest arrivals increasing from around 740,000 in 2015, to reach close to 821,000 during 2016, reflecting 10.9 per cent growth. The number of international tourists has also increased, now equating to 59 per cent of the total hotel guests. Research also highlighted that total guest nights reached over 2.73 million during the year, up 15.6 per cent from 2015.
Source of demand
The UAE remains the main source of demand for Ras Al Khaimah’s tourism industry but there has also been strong annual growth in visitors amongst key international source markets. This includes UK, India, Germany and Russia, which posted growth of 34.9 per cent, 28.2 per cent, 24.6 per cent and 19.5 per cent respectively.
Mat Green, head of Research and Consulting UAE, CBRE Middle East, said: “Ras Al Khaimah’s real estate market is set to see substantial transformation over the next five years including large scale projects such as Emaar’s first major foray into the emirate, with a planned mixed-use scheme on Al Marjan Island.
“Hotel group InterContinental and RAK Properties have also announced the revival of a 350 key resort property at the Mina Al Arab development and with the delivery of multiple new resort properties in the pipeline and 1,000 new keys expected to be delivered during 2017 and 2018, 2019 onwards will see a major market shift.” - TradeArabia News Service