Ras Al Khaimah now has the second-biggest hotel pipeline in the UAE, second only to tourism hub Dubai. With 5,076 hotel rooms on the way, the northern emirate’s upcoming supply is almost equal to Abu Dhabi, Sharjah and Fujairah’s combined.
That is according to Arabian Travel Market, citing data from STR on hotel supply in the region.
Up to September of this year, the GCC region now has over 170,000 hotel rooms under active development (planning, final planning & under construction). This is equivalent to 40 percent of the GCC’s existing hotel room inventory, a figure almost four times greater than the rest of the world which currently lags behind at an average of 11 percent under active development compared with existing supply.
The STR report estimates 135,560 existing rooms in Saudi Arabia with an active pipeline of 82,639 rooms, with total room inventory projected for 2030, at over 218,000 rooms. Similarly for the UAE, STR currently tracks more than 202,000 existing rooms with an active pipeline of 48,910 rooms, a combined total of almost 251,000 rooms by 2030.
Danielle Curtis, exhibition director, Arabian Travel Market explained: “While the hospitality sector’s growth does highlight the region’s increasing popularity on the global stage, it is also indicative of regional government strategy, to diversify GDP growth away from hydrocarbons into tourism that will help to drive demand still further, over the coming years.”
RAK hotel pipeline boosted by recent developments
The upcoming Wynn Resort in Ras Al Khaimah will benefit the entire emirate, according to the CEO of Marjan. The multi-billion-dollar resort is due to open in 2026.
Speaking at Future Hospitality Summit Dubai 2022 in Madinat Jumeirah, Abdullah AlAbdouli said: “This resort will have an enormous impact on the whole emirate of Ras Al Khaimah.”
The increase in interest in Ras Al Khaimah, and the amount of extra people who will call the emirate home, will see new schools, hospitals and more pop up.
AlAbdouli added: “The announcement has changed the perception of Ras Al Khaimah. A lot of investors have started to look at the opportunities here. To support this resort, we need more schools, we need more hospitals, we need more infrastructure. This resort is part of the bigger picture for the whole destination.
“The number of inquiries we’re getting for new developments and investments shows people now view RAK in a new way.”
The CEO also said land prices have increased by 30 percent and residential units by 40 percent since the Wynn Resort was announced.