Projects worth Dh300bn under way to attract tourists

The Northern Emirates’ hospitality industry is undergoing a major boom with projects worth more than Dh300 billion due to be completed by 2011.

The number of tourists visiting Sharjah, Fujairah, Ras Al Khaimah and Umm Al Quwain is increasing rapidly and is expected to reach more than five million a year.

“Ras Al Khaimah is emerging fast as a major tourist destination,” said Hilary McCormack, Manager of RAK Tourism. “The emirate’s government and its partners in the private sector have acted swiftly in response to the growing number of tourists, commissioning several new developments to enhance the emirate’s tourism infrastructure and expand the amenities and facilities for both leisure and business travellers.”

Visitor numbers in Ras Al Khaimah are expected to increase by 400 per cent by 2012 from last year’s total of 500,000. Hotel occupancy rates have reached 93 per cent.

The emirate has invested heavily in leisure, business and eco-tourism and its airport is undergoing an upgrade that will enable it to handle 1.2 million passengers by 2009.

A total of 22 hotel projects worth Dh113bn are planned and will add 6,752 new rooms by the end of 2011.

Hotels in the pipeline include major brands such as a Radisson SAS resort due to open in the second quarter of 2009 with 250 rooms, and the 300-room Marriot International, as well as the Hilton RAK Resort and Spa opening this year with 481 rooms.

Several large-scale development projects also include hotels. Al Hamra village will have two luxury properties alongside 1,300 villas, town houses and apartments, a lagoon, a marina and a golf course.

Al Marjan Island, the first man-made island project to be developed in Ras Al Khaimah, will extend more than 2.7 million square metres and be worth more than Dh6.6bn. The coral-shaped island is set for completion by June 2009 and will consist of waterfront homes, floating villas, hotels, resorts, sports facilities and commercial areas.

Another project, Dana Island, will measure 5.3 million sq m and extend 7km into the sea. It will have hotels, homes and commercial complexes.

RAK Financial City, a new offshore hub for the region’s business community, will cover 750,000 sq m and be worth Dh3bn. It will have two 65-floor towers, offices, residential apartments, hotels and commercial areas.

The Jebel Al Jais Mountain Resort will include ski slopes and support services, a golf course, commercial and residential towers, a hotel and villas. The completion date is 2012.

Saraya Islands, consisting of 7km of natural islands, will include hotels, waterfront villas and terraced apartments, lagoon view townhouses and villas, private pier villas, mid-rise water view apartment buildings, serviced rental villas and bungalows.

Amenities will include spas, retail outlets, restaurants, an entertainment village, an amusement water park, a sports centre, a high-end cultural centre and Arab sailing boats. There will in addition be a planetarium, bicycle and waterfront walking trails, indoor and outdoor sports facilities, a sailing, fishing and navigation training institute, 6km of sandy beaches, bird sanctuaries and car parks. Wow RAK is a theme park development with a daily capacity of 15,000 visitors.

And a Dh110 million commercial spaceport will offer suborbital flights and have a training centre and museum.

Sharjah has also seen tremendous growth in its hospitality sector, which is now worth Dh3.8bn – and many major new projects are under way.

Hotel occupancy rates in the emirate have at times touched 90 per cent and tourist numbers are expected to total two million per year by 2010. The Sharjah Commerce and Tourism Development Authority (SCTDA) says average occupancy levels in the first quarter of 2008 rose to 80 per cent compared with 77 per cent in the same period last year. A major factor behind the increase in tourist numbers is the growth of Air Arabia, Sharjah’s low cost airline.

The Emirates Hotels group expanded from 74 units in 2007 to 96 in 2008 – 33 hotels and 63 hotel apartment blocks.

SCTDA Director General,Mohammed Ali Alnoman said: “In 2000, Sharjah had 600,000 tourists annually and this has increased to 1.5 million during 2007.

“There are also a lot of projects that will contain hotels. Marriott is building a resort and apartments for businessmen and a lot of international hotels are in the works.

“Visitors come to the emirate because of the heritage and culture. There are more than 20 museums and there is also diving and the desert. The increase is natural because a lot has been invested in boosting the tourism sector in Sharjah and there is a lot of activity going on. We are expecting 15 new hotels in the next three years. The tourism sector was the highest contributor to the emirate’s gross domestic product last year.”

Umm Al Quwain attracted Dh100bn of foreign investment in 2007. Key projects include White Bay, a Dh8bn venture being developed by the Emirates Sunland Group. The resort-style community will have two man-made islands, several hotels and a 190-berth marina and canal.

Emaar Properties has launched developments in the emirate worth Dh12bn that will create 1,200 resort and hotel rooms. Premier Inn is moving into Umm Al Quwain and other forthcoming projects include a Dh60m cultural centre and a Dh8m beach park.

The Umm Al Quwain Government has recently drafted an international classification of hotels and hotel apartments. Hotels will be divided into five classes based on services and amenities. Hotel apartments are to be divided into deluxe and normal categories.

Mohammed Showki, an official in the Monitoring Control Department of The Department of Economy in Umm Al Quwain, said: “Visitors to Umm Al Quwain have increased due to the introduction of many projects and developments in the emirate. We are expecting 25 new hotels to be launched in the coming years.”

Fujairah is planning to spend Dh3bn on its tourist industry, with 60 per cent coming from private investors and the remainder from government funds. Development plans are also under way to improve the road network and infrastructure and the Dubai-Fujairah freeway, due to be completed by the final quarter of 2009, is expected to further boost the emirate’s hospitality sector.

Many hotels will be built at the Hillal real estate project, which will also contain commercial and residential units and a shopping centre. And the Dh1bn Dana Island residential project will include hotels as well as 350 villas. Fujairah Tourism Bureau says 11 hotels will also be built in the next few years.

John Kerr, Managing Director of Sharaf Group’s Travel and Tourism division, said: “The emergence of the Northern Emirates as a tourism hot spot is only a natural progression from the success of Dubai.

“The Department of Tourism and Commerce Marketing has successfully put the UAE on the world tourism map through their robust efforts to market Dubai around the globe and now tourists, particularly those on second and third visits, are looking for dual destination opportunities whether it be to nearby countries such as Oman or neighbouring emirates.”

More and more tour operators are looking to the Northern Emirates due to the overcrowding of the Dubai hospitality sector with regard to room availability and accommodation solutions, Kerr said.

“European tour operators are already promoting and selling emirates such as Ras Al Khaimah successfully. There is definitely a growing interest in the Northern Emirates,” he added.

Ajman is also experiencing a tourism boom, the emirate announced major tourism infrastructure projects earlier in the year, which included luxury resorts and hotels. The projects total Dh5.55bn, including Ajman Museum and Heritage village.

In a bid to attract real estate developers Ajman has allocated Dh1.38bn to developing infrastructure. A major development in the emirate is the Dh3bn Ajman Marina, which will feature hotels and residential towers, a yacht club, a shopping mall and entertainment facilities. The project will cover 14 million sq ft.

Al Zora is another major project. A master development worth Dh50bn, it will cover an area of 10 million sq m on the Ajman coast from Ajman Kempinski Hotel to the Al Hamriya Port. The development will also be connected to Dubai via Emirates Road, a separate access to which is being built.

The numbers

400%

Increase in visitor number is expected in Ras Al Khaimah from last year’s total of 500,000

22

Hotel projects worth Dh113bn are planned in RAK and will add 6,752 new rooms by the end of 2011

90%

Is the hotel occupancy rate in Sharjah, with tourist numbers expected to reach two million per year by 2010

Dh100bn

Worth of investment has been attracted by Umm Al Quwain in 2007, with Emaar Properties launching Dh12bn developments

Dh3bn

Will be spent by Fujairah on the hospitality sector, with 60 per cent coming from the private sector

Dh5.5bn

Worth of projects have been announced by Ajman, including Ajman Museum and Heritage village

11

The number of hotels Fujairah Tourism Bureau says will be built in the next few years

Dh3bn

Funds marked for major development project Ajman Marina

-Business 24/7-