Al Nuaimi adds: “This doesn’t mean that we are competing with our neighbouring emirates but we complement, and support, each other by offering visitors other forms of activities or attractions. These include our beaches, our warm Arabian hospitality and the peaceful environment.”
Colliers International reports that the Northern Emirates are improving performance. Colliers International MENA director and head of hotels Filippo Sona says: “For the period ending December 2015, the Northern Emirates appear to have achieved a market hotel performance similar to other emirates.
“With the exception of Sharjah, hotels in the Northern Emirates have witnessed rising occupancies year on year, with Ajman registering the highest occupancy at 75% and Ras Al Khaimah maintaining its leadership position with regards to ADR.”
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“Of all the Northern Emirates, Umm Al Quwain has the most consistent market performance, with average room rates and occupancy close to AED 414 and 68% respectively for the past three years,” he says.
However, Ajman showed classic signs of a small market when FRHI opened there. “Ajman rates saw a slight rate drop due to the new Fairmont hotel opening, which entered the market [in May 2015] with promotional rates to gain market share, which in turn compressed the market,” Sona adds.
He continues: “Decrease in Russian guests (due to fluctuating rouble) has strongly impacted Ajman and Fujairah. Whereas RAK witnessed a strong increase in performance from various other source markets such as the Gulf countries, India, China and Europe.”
12 months in review
Hotels in the Northern Emirates were affected like others in the wake of the Russian and European economic downturn, but managed to stage a counter-offensive to ward off losses. It resulted in several hotels registering positive results.
Ajman Palace Hotel general manager Ferghal Purcell says: “2015 was no doubt a challenging year, but at the same time it was equally productive.” He confidently tells Hotelier that the Ajman Palace Hotel outdid its competitors on RevPAR, ADR and occupancy.
The Fairmont Ajman opened midway through 2015, and its general manager Henry Schaeffer says: “As we opened in May 2015, it was difficult to know what to expect from the Northern Emirates, particularly going into the summer season. We are, however, happy to say that the property was well received and we are very pleased with our opening success.”
Kempinski Ajman GM Kai Schukowski reports challenges: “2015 has been a very volatile year with the challenging political situation in Russia and Ukraine as well as the devaluation of the euro versus the US dollar, affecting our main feeder markets from Western and Eastern Europe.”
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