Ras Al Khaimah Hotel Revenue Up By 47% In Q3

The Tourism chief at Ras Al Khaimah announced recently that the hotel room revenue grew by 47 % in the third quarter of 2014 as the emirate is a popular destination among the tourists.

Last year the 1 million barrier was not broken until November, demonstrating the rocketing tourism growth being experienced by the Emirate, which has 65 kilometers of prime beach coastline.

Steven Rice, the CEO of RAK TDA said that “Our percentage growth in guest nights for the third quarter of 2014 compared to the same period last year was 72%, so extremely impressive.” He also mentioned that “We are also seeing significant increases in the number of people searching for Ras Al Khaimah in Google, in visits to our website, and in the levels of engagement via our social media presence. In addition, hotel room revenue increased in the third quarter of 2014 by 47% compared to last year."

RAK is a very popular emirate among the residents for a getaway during Eid and public holidays. The emirate attracted over 63,870 guest nights during 5 days of Eid Al Adha, domestic UAE travelers accounted for 32%, UK 12%, Russia 12% and Germany 10%.

According to data gathered from Smith Travel Research report, Ras Al Khaimah’s average daily room rate (ADR) was 19% higher than Abu Dhabi, which was supported by new openings on Al Marjan Island and Waldorf Astoria, which was Hilton luxury brands’ first property in the UAE.

Rice also commented on future prospects “Forward bookings are looking strong, interest in the emirate across multiple business sectors is on the rise and overall we expect the positive growth patterns experienced in Ras Al Khaimah to continue."

Earlier this year Ras Al Khaimah said it was launching a new tourism branding, pitching the emirate as a “world class leisure destination” and retreat from the urban cities such as Dubai. RAK TDA is considering building a mountain village and establishing mountain climbing and zip lining to attract tourists and to add to the list of activities.

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MEA Hotel Occupancy Up By 13.1% in September

The Middle East/Africa region reported positive performance during September with a 13.1 per cent increase in occupancy to 65.5 per cent, a 1.3% increase in ADR (Average Daily Rate) to $145.12 and a 14.5% increase in RevPAR to $94.99, according to STR Global Data.

Elizabeth Winkle, managing director of STR Global said that “It is positive to see consistency in performance in spite of instability leading to uncertainty in certain countries.”

“Amongst the high performers, Saudi Arabia is one of the region's strongest in September as the country was gearing up for Hajj, which took place the first week in October”, said Winkle. “Cairo, whilst still in recovery mode, achieved occupancy levels of 51.8 percent with significant year-over-year growth of 107.5 percent”.

Some of the key trends from the regional key markets for September 2014 include:

• Egypt recorded 138.3% increase in occupancy to 60.8 %, and a 15.6% increase in ADR to EGP 523.76 and a whopping 175.4% increase in RevPAR to EGP 318.49.

• Saudi Arabia reported an increase of 26.7 % in Occupancy to 66.3%, a 28.1 per cent increase in ADR to SAR 858.62, and a notable increase of 62.3% in RevPAR to SAR569.12

• In UAE, Occupancy decrease by 0.1% to 72.9 %, ADR was down by 3.3% to AED 575.83, and RevPAR decreased by 3.4% to AED 419.85.

Four markets achieved double-digit or more RevPAR growth: Cairo (+133.9% to $55.82); Beirut (+68% to $82.99); Jeddah (+21.9% to $216.34); and Doha, Qatar (+12.2% to $127.50). 

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637 Hotels Under Contract in MENA

The Middle East and Africa has 637 hotels under contract, with 151,205 rooms, according to STR Global’s September construction pipeline report.

139 hotels opened year to date, with 33,232 rooms in the region, according to the global research firm. It expects 82 hotels, with 18,538 hotels to open in the remainder of 2014.

The most rooms are planned to be added in the upper scale segment (5419 in 18 hotels), followed by the unaffiliated segment (4626 rooms in 22 hotels), the upscale segment (3,531 rooms in 13 hotels) and the luxury segment (3480 rooms in 150 hotels).

By 2015, 145 hotels, with 32,271 rooms are due to open in the region. The upper upscale segment is expecting to add the largest addition of rooms. i.e. 38 hotels with 12,516 rooms, followed by the luxury segment (26 hotels with 5,318 hotels) and the upper segment (31 hotels, with 5,024 rooms)

A number of hotels have opened in the UAE, in 2014, such as the Double Tree by Hilton Hotel and Residences in Al Barsha-Dubai, Sofitel Downtown and Holiday Inn Abu Dhabi downtown.

According to the data provided by the Dubai’s Department of Tourism and Commerce Marketing, more than 7000 rooms were added in Dubai since June last year bringing the total to number to 88,680 rooms across 634 properties.

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GCC Hospitality Industry Set To Reach $35.9 Billion By 2018

The hospitality industry in GCC is forecast to grow from $22.8 billion (Dh83.7 billion) in 2013 to $35.9 billion by 2018 at an annual rater of 9.5 % according to a new report by investment bank, Alpen Capital.

The UAE’s Hospitality industry is expected to grow at a compound annual growth rate of 10 per cent between 2013 and 2018.

Average Hotel occupancy rates in GCC are expected to be between 68 percent and 74 per cent between 2013 and 2018, while the average daily rate (ADR) is likely to be between $225 and $263 during the same period.

The growth of the industry in the region will be fuelled by the shift in global activity from East to West, a rise in leisure travel, higher demand for serviced apartments, a shift towards budget travel and quicker construction pipeline, said Sanjay Bhatia, Managing director of Alpen Capital.

The sector’s growth is also expected to be driven by increase in international tourist arrivals, and a stronger MICE segment among others, said Sameena Ahmad, managing director of Alpen Capital in the Middle East.

According to the report, Saudi Arabia is expected to continue its dominance as the largest market in terms of revenue, followed by the UAE.    

The GCC has made major investments in the airport infrastructure, with Al Maktoum International at Dubai World is undergoing a Dh 117.5 billion which is expected to begin by end of the year. The airport will be able to serve 120 million passengers within six to eight year.

Airports across the region are expected to handle as many as 250 million passengers by 2020, according to Reed Exhibitions, quoting a study.

However, as the GCC countries are set to boost their hotel room capacity in the run up to major events, they also face the challenge of sustaining the demands after the events take place. The region has made major investments in infrastructure for events like World Expo 2020 in Dubai. The six month long Exhibition will be the main driver of the hospitality industry in UAE, which is valued at 23 billion dollars according to the report. However, in Dubai the hotel room supply and demand could be balanced after Expo 2020.

Other challenge faced by the GCC region is competing with newer projects and attracting skilled labor force.

Sanjay Bhatia, also said that, the growth of the sector will be driven by supportive policy initiatives undertaken by GCC governments to enhance infrastructure; there by positively impacting the continued investor appetite for the region and tourism.

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