RAK aims to boost tourism sector

Ras Al Khaimah yesterday outlined an ambitious plan to increase the tourism sector's contribution to its economy from about 2 per cent to at least 15 per cent within the next ten years.

The emirate is aiming to attract 1.2 million visitors annually by next year. Jeff Topping / The National
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Ras Al Khaimah yesterday outlined a plan to increase the tourism sector's contribution to its economy from about 2 per cent to at least 15 per cent within the next 10 years.

The emirate is also in talks to bring foreign investment into the hospitality sector to achieve this growth.

"We are talking to a lot of investors, and in the coming five to six months you will get other announcements that will come out," said Victor Louis, the chief executive of RAK Hospitality Group, which was established in November as a government entity to support and develop the emirate's hospitality industry.

"We're also talking to master developers - not only someone that will take a piece of land to build a hotel, but companies that would be interested in developing 1,000 rooms, 2,000 rooms as a master plan."

He said RAK was in talks with investors globally and "had offers from all over the place", declining to provide further details.

The comments came as RAK yesterday announced plans to open an all-inclusive luxury resort in the emirate, to be operated by the Turkish company Rixos.

The Dh500 million (US$136.1m) resort, which is being developed by RAK Hospitality and is scheduled to open in the last quarter of this year, is a 627-room property that is part of the Bab Al Bahr property development.

Mr Louis said RAK was aiming to position itself as an "affordable luxury leisure" destination.

He also serves as the chief operating officer of the RAK Tourism and Development Authority, established last May.

The emirate attracted 835,000 tourists last year compared with about 500,000 the previous year, according to Mr Louis, who explained that this growth had been driven by the addition of hotels as well as charter flights from Europe to the emirate.

Its biggest source markets for visitors are Germany, the UAE and Russia.

"This is an indication that you open a hotel and you fill the hotel," he said. RAK has about 3,500 rooms under development or already open, with a target to have 10,000 hotel rooms by 2016, Mr Louis said.

The emirate is aiming to attract 1.2 million visitors annually by next year.

A delayed Waldorf Astoria resort is expected to open in the fourth quarter of this year, Mr Louis said.

The hotel investment arm of the Government has earmarked Dh600m for investment in the sector this year.

Rixos said it was studying investment opportunities in the emirate.

"We are looking in Ras Al Khaimah not just to have hotel management, but also investment opportunities," said Fettah Tamince, the chairman of Rixos Hotels.

Analysts say that weak economies on Europe could reduce visitor flow into RAK this year.

"Recent trends in the euro-zone economy, with many member states teetering on the brink of negative growth or having already fallen over the edge, may mean the flow of European visitors will slacken in 2012, despite the increase in charter flights," analysts at the Oxford Business Group said in a report published two weeks ago.

"Another challenge will be maintaining differentiation from neighbouring countries with similar offerings."

But in the longer term, the potential was good, according to the report.

"Even if the coming year does not live up to expectations, 2012 will give RAK the opportunity to put in place more holiday infrastructure and accommodation, meaning it should be well placed to take advantage of any post-downturn boom."