RAK drives leisure north

As the countdown begins for a huge room boom in Ras Al Khaimah, the northern emirate has started to fine-tune its tourism product to widen its appeal way beyond the budget beach sector.

While room numbers in Ras Al Khaimah have doubled in three years, with only slightly more than 1500, of which half are on the beach, the emirate is not yet a big player in the regional tourism sector.

But it was an indication of the impact that RAK is having on overseas markets when a group of 25 agents from the UK were in town in May, hosted by Virgin and Hilton. In addition, RAK Airways already has charter contracts with Russian and Irish operators and Austrian golf clubs are sending down groups for winter play at the Al Hamra Golf Club.

 

In fact, RAK is probably better known in overseas tourism circles than in the region - certainly as a holiday spot - with existing hotels there reporting 93% occupancy in 2007 and tourist figures up 40% over the previous year.

As a destination in the making, its obvious attraction for sun-seeking tourists is a swathe of sandy beaches, currently interspersed with the inevitable construction sites that increasingly hug the UAE and other Gulf coastlines.

But while access to Dubai for shops and bright lights combined with comparably cheap quality accommodation has been the loss leader for RAK, there's a whole lot more to the emirate that authorities there are quietly confident will serve to attract new market niches in future.
 

And, as well as an ever increasing list of leisure and residential projects breaking ground, the concurrent announcements from major hotel operators indicates this blueprint for success is striking a chord at the highest levels of the hospitality industry.

In addition to local incumbent Al Hamra with its new Khatt Springs Spa Hotel and Palace property scheduled for next year, Hilton is capitalising on its links with RAK, augmenting its original 227-room city hotel with 151 beach villas and 2000m² spa, a 330-room beach resort opening next year and another 400-room resort in the offing at Mina Al Arab, while new entrants Rotana and Banyan Tree will both open within six months or so as the vanguard of a host of flag operators.

Potentially another 2000 rooms will be added annually during 2009/2010, with this number more than doubling for 2011 as some of the major projects come on-stream, from convention centres and theme parks to ski resorts and spas.

For now, certainly for the regional audience, Ras Al Khaimah scores as a gateway to the Musandam fjords; a base for those keen to explore the mountains; as a competitively priced golf destination with two designer grass golf courses; and as a family-friendly beach destination where the sands are divorced from the high-rise environment down the coast.

It doesn't have the bling of its neighbour, but for those seeking the quieter side of life and a more back-to-nature approach, the RAK model could be a sell worth considering.

Developing the product

At RAK Tourism, priorities for the immediate future are to package the emirate into sellable chunks.

According to tourism manager, Hilary McCormack, working with government departments responsible for museums, antiquities and environment, all parties will look at ways to enhance the natural attractions of RAK while ensuring sustainability for the future.

Low impact projects will be developed in tandem, but the USP for the emirate remains its mix of scenery and natural attractions.

"Ras Al Khaimah is unique in its combination of eco systems - wadis and beaches, wetlands and mangroves, desert and green belt, and this is the message we need to get across," says McCormack.

"We are fortunate in the timing of our development when there is more thought being given to environmental issues and we are aiming to develop the natural areas which are not easily accessible currently, as well as stressing the authenticity of the product."

Heritage preservation will also play a key role in the tourism product, she says, with an action plan that will include an archaeological park and museum at the medieval trading town of Julfar; Dhayah Fort above the palm gardens; prehistoric tombs at Shimal as well as a a heritage park at the Falayah summer residence.

But, while these plans will augment the RAK sell, in the immediate future it is probable that the new and existing hotels will drive numbers, particularly adding appeal for regional traffic looking for alternative getaways.

"There is potential for activity breaks with access to the Musandam, water sports, 4WD and other mountain soft adventure, as well as team building for corporates and we anticipate more regional visitors as the new hotels open up," says McCormack.

"In 2008 you can see something tangible coming up in RAK and this gives options to sell - in addition, Net Tours has set up an office in the emirate and has plans to develop a desert camp and possible overnight accommodation to boost the tour element."

This widening of the marketability of RAK is endorsed by Hilton with a new beach resort scheduled to open early in 2009, giving the group flexibility to open up to new markets.

"With our new resort, we will have meeting facilities for up to 1000 and this will give us capacity for meetings and events," says general manager, Mohab Ghali.

"Already, we are doing 87% occupancy at the city property and have done 71% in the first year of operation at the beach resort here."

As well as the new rooms, Hilton is fine-tuning its leisure capabilities with initiatives such as a marina at the city property offering berth for yachts that want to stopover on the way to the Musandam, as well as a four-bed luxury gulet for diving and marine tours and a luxury yacht that can also for used for Dubai runs.

"These will also be good for the incentive and corporate markets," adds Ghali.

Exceptional facilities will be the hallmark of the Banyan Tree too, which is looking for a Q1 opening in 2009 at a location 20km in to the desert outside the city.
 

The resort will have 70 suites and 31 tented villas all measuring at least 100m² and with private pools, plus a spa with 10 treatment rooms, hydrothermal garden and hammam, four meeting rooms and a private island in the Al Hamra lagoon with beach, cabanas and spa facilities.

According to sales and marketing director Bobbie-Jane Skewes, the range of facilities on offer means the resort will be able to cater to longer-stay guests as well as those seeking a weekend getaway.

"We will be appointing a dedicated sales manager who will target the GCC market, particularly for the summer months," she says.

 

"It has helped having the Bahrain property as a promotion for the spa element of Banyan Tree given that we are a new product in this market."

Although pricing will be benchmarked against resorts such as Al Maha, Skewes says there will be a distinct differentiation for the RAK property.

"We will be family friendly - pool villas come with their own camels for instance and we also have beach access and an acclaimed spa, as well as offering personalised leisure experiences that guests can take when they wish, rather than at set times."

While the Banyan Tree is positioned as a destination in itself, Rotana's first offering in RAK - set for a December 1 soft opening - is also a unique resort proposition with villa units as well as a hotel at The Cove Rotana Resort, all set around a beachfront hillside and secluded water inlet.
 

In partnership with Egyptian developer Orascom, which includes El Gouna in its portfolio, The Cove Rotana will have 202 rooms, 185 real estate units of one-, two- and three-bedroom villas, many with private pools, plus a private beach, restaurants and three meeting rooms - all designed with Nubian touches and oriental themes, and complete with sunset views.

General manager Maurice de Rooij says property owners could lease back their units to be included in the hotel inventory, giving Rotana a unique flexibility.

"Existing hotels here have tended to cater to the budget beach sector but as a new hotel, we can market to additional audiences such as MICE," he says.

"In addition, the Rotana name, which is well-known regionally, will be a strong pull.

"As a diversified product, RAK will then have a more sustainable product - appealing to those that want to seek out its unique attractions in terms of the flora and fauna, history and culture etc."

De Rooij also suggests that in future, the northern emirates could be positioned as one destination, combining Fujairah on the Indian Ocean with RAK on the Gulf: "There is synergy between these two products and we could offer special packages to operators to combine the two."

While this summer might see more of the same in RAK, with overseas tourists dominating the market mix, already golf is one area where the emirate is scoring heavily, with a combination of superior courses and at comparatively low play rates.

As well as the 18-hole, par-72 Tower Links course, situated near the centre of the city amid mangroves with a floodlit driving range, training academy, clubhouse and spa, Al Hamra has now added a second option with its 18-hole golf club and marina sited around the lagoon behind the Al Hamra Fort Hotel.

General manager Chris White says the opening of the clubhouse last month completed the project that now included a par-72 Peter Harradine-designed golf course that offers a 'taste of links' golf, as well as floodlit nine-hole par-3 academy course and 350-yard driving range, and a golf academy with indoor coaching studio, lecture room, workshop and two air-conditioned 'swing rooms' with open doors to the range.

In addition, there is a main clubhouse with pro shop, bar and restaurant, sunset terrace and an academy clubhouse, gym and café.

"With two championship courses in the emirate now and an AED 450 (US $123) fee for a round compared to AED 750 ($204) in Dubai, there is an incentive for golf tourists to base themselves in RAK, visiting Dubai to play a course or two - rather than the other way," says White.

"Overseas golf rounds in the UAE decreased last year as it became expensive and we can help revive this sector by offering net rates to hotels and operators for three- and five-day play so they can put together bookable packages."

 

Future prospects

But while golf, sea life, desert adventures, spas and nature are already shaping up as some of RAK's clearest tourism plus points, there is a swathe of projects underway that will considerably enhance its destination credentials in future bolstering the appeal of the current price proposition that considerably undercuts its neighbour at the other end of the Emirates Road.

Plans for an iconic convention and exhibition centre were unveiled at Arabian Travel Market in May, including a US $400million design for three 750-room hotels, a 50,000m² venue with five exhibition halls with a capacity to host 4000 delegate conferences, shopping mall, plazas, courtyards and roof gardens.

In addition, the emirate is hosting a range of projects including the RAK Media Free Zone and Film City in conjunction with Hollywood's Mirage Holdings with an international film museum, academy and polo field; the Jebel Al Jais mountain resort with ski slopes; another country club and golf course; Wow RAK with two theme parks, and even a commercial space port with launchpad for sub-orbital flights, a training centre and museum.

On the coast, Marjan Island, Dana Island, Mina Al Arab, Mangrove Island, Ma'Arid Bay, and Saraya Islands will all include resort elements, the latter with a water theme park, planetarium, marina and sailing institute.

And, to complement all of this, RAK Airways has some ambitious plans for expansion that will include potential for tourist charters as well as scheduled services to their key source markets.