The Ras Al Khaimah Tourism Development Authority are urging for property investors to look towards the emirate as demand from visitors begins to outpace supply.
- Ras Al Khaimah’s tourism industry is growing at such a rate that thousands of new units are needed by 2025 to meet demand
- Overall visitor numbers to Ras Al Khaimah are currently increasing at a rate of 7.2% year-on-year, compared to a global average of just 4%
- Tourism Development Authority “obviously very keen to talk to investors and look at opportunities to build” in Ras Al Khaimah
With Ras Al Khaimah expected to receive three million visitors a year by 2025, 25,000 new units are needed to meet demand.
The emirate currently has 3,600 hotel rooms, and its occupancy rate has risen to 71%. But Ras Al Khaimah has added only 382 new units this year.
Targeting a million visitors by 2018, Ras Al Khaimah will need an additional 4,000 rooms, and three million visitors by 2025, with the need for an additional 20,000 to 25,000 rooms.
Overall visitor numbers to Ras Al Khaimah are currently growing by 7.2% year-on-year, primarily driven by the international market. But rapid international growth, including a 45% increase in visitors from Europe, meant fewer visitors within the UAE could visit.
Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Authority (RAKTDA), commented on the impressive increase in visitors to the emirate: “This is higher than the global average of 4%, and the regional average is about 3.2%.”
“At the moment our growth in demand is much higher than supply, and we are obviously very keen to talk to investors and look at opportunities to build in Ras Al Khaimah,” he said.
RAKTDA has opened international offices in the UK, Russia, Germany and India to help boost international visitor numbers. However, it’s the number of domestic visitors, growing at 55% annually, that are particularly affected by the undersupply of accommodation.
A decline in visitors from elsewhere in the UAE is directly related to the availability of suitable places to stay, believes Mattar, and could easily be solved if investors look to Ras Al Khaimah in the future.
“The decline in the domestic market is pretty much related to availability, and we are working very closely with developers and encouraging more investors to look at building because the demand for the domestic market can continue to grow, should we have enough space.,” Mattar stated.