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How the hospitality sector is leading Ras Al Khaimah’s economy

The number of keys in the emirate are expected to exceed 12,700 as it aims to attract 1.11 million tourists by 2025

Ras Al Khaimah’s hospitality sector is not only attracting tourists but also garnering interest from developers and hotel management firms.Over the next few years, Ras Al Khaimah plans to increase its hotel capacity to over 12,700 rooms, as it aims to welcome 1.11 million tourists by 2025.

The emirate is already home to renowned global brands, with the upcoming Wynn Al Marjan Resort set to become a strong draw for the industry. The hospitality sector is playing a pivotal role in driving the emirate’s economy.

“Within the UAE’s already accelerating tourism and hospitality growth, Ras Al Khaimah exhibits promising prospects as a strong tourist destination. The emirate’s hospitality sector has been expanding steadily, aligning with its ambitious goal of attracting three million tourists by 2030. Its strategic proximity to Dubai also enables tourists to seamlessly combine visits to both destinations,” said Doris Greif, VP of luxury and lifestyle, MEA, IHG Hotels and Resorts.

Ras Al Khaimah’s potential as a leading player in hospitality and tourism is underpinned by its natural beauty, cultural attractions, adventure tourism offerings, luxury amenities, robust investor confidence, and commitment to sustainability.

The emirate’s diversified attractions extend beyond the traditional sun-and-sand model, making it appealing to a wide range of regional and international travellers. Additionally, the emirate is actively investing in infrastructure development, including road networks and airports, to enhance accessibility, positioning it for significant growth and global recognition in the tourism landscape.

“Ras Al Khaimah is a destination that has seen increased interest from tourists, and we are committed to serving this market effectively. We are aware of the evolving landscape, and we will make informed decisions based on the market dynamics and the preferences of our guests,” Greif added.

The region’s next ‘ultra-luxury hub’

Data from the JLL UAE Real Estate Market Overview released in Q1 of 2023 has highlighted a positive outlook for the industry. The UAE’s luxury hotel sector is not just recovering from the pandemic but is thriving. The hospitality sector today enjoys a sunny outlook as leisure and business trips are both on an upward growth trajectory heading into 2023. In fact, hotels in Dubai have noticed an early increase in interest for stays during the COP28 summit. With prices surging by 200 percent in some hotels, hoteliers and hospitality experts are anticipating a strong business year ahead.

As Dubai get more crowded and costly, residents and tourists are now looking for an alternative to meet its luxury demand – Ras Al Khaimah. According to recent data, RAK achieved a record 1.1 million overnight arrivals last year, a 16 percent increase, including a remarkable 40 percent surge in foreign tourists. The past decade has seen significant investment from major global hotel companies in the UAE’s luxury sector, with a particular emphasis on the “ultra-luxury” category catering to ultra-high net worth individuals (UHNWIs).  

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Racking up luxe launches and accolades

Nikki Beach Resort & Spa recently introduced that it will now move into Ras Al Khaimah with a property at the emirate’s Mina Al Arab development.

The opening is in partnership with developer RAK Properties and will include a 155-key resort, a Nikki Spa, Tone Gym and restaurants.

Gensler will follow the Barjeel guidelines set by the RAK Municipality, integrating local products and natural materials in all aspects of the building and its interiors, connecting with local artists to highlight the natural beauty of Mina Al Arab, and incorporating the latest sustainable technology in the design.

Ambitious plans are underway to expand the number of tourists in Ras Al Khaimah to three million by 2030, supported by 19 new hotels from global brands such as Marriott and Anantara, marking a 70 percent increase in current inventory.

Ras Al Khaimah also recently received the coveted Silver Certification from EarthCheck’s Sustainable Destinations. It makes the Northern Emirates the first destination in the Middle East to earn the recognition. The certification process includes monitoring, benchmarking, and auditing across 10 sustainability indicators – from energy and water consumption to waste management, carbon footprint analysis, and community engagement.

EarthCheck founder and CEO Stewart Moore, said that the destination management commitments and sustainable tourism guidelines not only provide a strategic framework to drive and foster action across the community and industry, but they position Ras Al Khaimah as a regional leader in sustainable tourism. Moore observed that “embracing sustainable principles will ensure that Ras Al Khaimah’s unique environment and rich culture can be both fostered and protected as the tourism industry continues to grow. EarthCheck looks forward to being an active partner in this journey.”