Demand for hotel stays in Ras Al Khaimah is expected to exceed supply, according to Tatiana Veller, managing director of Stirling Hospitality Advisors. With the announcement of a Wynn resort opening in the emirate in 2022, interest has skyrocketed, leading to a potential shortage of hotel rooms by 2030. Ras Al Khaimah plans to double its hotel inventory by 2027 but will still fall short of meeting demand, which is projected to be three times higher by 2030. This gap between supply and demand is a key concern for the hospitality industry in the emirate.
To address the potential shortage of hotel rooms, RAK Hospitality Holding is looking to attract more hotel investments in the mid-scale and lifestyle segments. With the high price point of the Wynn and other luxury hotels, there is a need for more affordable options to cater to a wider range of guests. This includes building mid-scale and lifestyle hotels further inland, away from the beach, to provide more budget-friendly options for visitors. RAK Holding sees this as a significant opportunity for growth in the hospitality sector in Ras Al Khaimah.
While the opening of the Wynn is expected to bring in a significant number of guests, there are concerns about the spillover effects on neighboring hotels. While the Wynn may attract high-end clientele, other hotels in the area will need to cater to budget-conscious travelers who may not be able to afford the luxury accommodations of the Wynn. This presents an opportunity for mid-scale and budget hotels to capitalize on the overflow of guests from the Wynn and provide affordable accommodation options for visitors to Ras Al Khaimah.
RAK Hospitality Holding aims to diversify its hotel offerings to appeal to a wider audience, especially in light of the increasing demand for hotel rooms in the region. By investing in infrastructure and attracting a variety of hotel brands, the emirate hopes to attract more tourists and meet the growing demand for accommodations. With plans to open more three, four, and five-star hotels in the coming years, Ras Al Khaimah is positioning itself as a premier destination for travelers looking for a range of hotel options.
The expansion of the hospitality sector in Ras Al Khaimah is expected to have a positive impact on the overall tourism industry in the emirate. By diversifying its hotel offerings and attracting a mix of luxury, mid-scale, and budget hotels, Ras Al Khaimah is creating opportunities for growth and investment in the hospitality sector. With the opening of the Wynn resort set as a catalyst for tourism development, Ras Al Khaimah is looking to capitalize on the increasing interest in the emirate as a tourist destination.
In conclusion, Ras Al Khaimah is facing a potential shortage of hotel rooms due to increasing demand driven by the opening of the Wynn resort. To address this challenge, RAK Hospitality Holding is focusing on attracting more hotel investments in the mid-scale and budget segments to meet the needs of a diverse range of travelers. By diversifying its hotel offerings and expanding its infrastructure, Ras Al Khaimah aims to position itself as a leading tourist destination and attract a wider audience of visitors.
