Ras Al Khaimah aims to top 2022 record tourist arrivals this year


Sarmad Khan
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Ras Al Khaimah, one of the fastest growing tourism markets in the region, is set to surpass the number of tourists it received in 2022, driven by more direct airline connections and the emirate’s efforts to bring attract tourists from India and China.

The tourism sector in Ras Al Khaimah, which is positioning itself as a sustainable and nature destination, has recovered strongly from the pandemic-driven slowdown and attracted a record 1.13 million visitors last year.

“Our goal for 2023 is to exceed that”, Raki Phillips, chief executive of Ras Al Khaimah Tourism Development Authority (RAKTDA), told The National on Wednesday.

“We're very pleased with the results that we had in 2022, superseding 2019 results [before the pandemic], but our goal is to continue to grow.”

The 15.6 per cent annual jump in overall visitor numbers in the emirate was driven by a 40 per surge in international tourists from its key source markets, including Kazakhstan, Russia, the UK, Czech Republic and Germany.

“We closed 2022 with 55 per cent domestic and 45 per cent international visitors. Year-to-date that has switched around. We're seeing more international travellers versus domestic,” he said.

The emirate is now focusing on the Indian and Chinese markets, key sources of tourists for the larger Dubai and Abu Dhabi markets.

“We just had our record February number of arrivals … and I think that will set us on the right track” to exceed last year’s performance, Mr Phillips said.

It will be a couple of years before China becomes one of the top five source markets for the emirate, but it has great potential for growth and even a gradual rise in the number of Chinese tourists will help the tourism authority achieve its targets, he said.

India is “low-hanging fruit” and the emirate has taken several measures to boost Indian tourists’ arrival in Ras Al Khaimah, he said.

The emirate is aiming for a 70:30 split, where 70 of its visitors will be international and 30 per cent domestic “in the next three to four years”, he added.

Ras Al Khaimah’s tourism and leisure sector received “billions of dollars” worth of foreign direct investment in 2022 and the emirate is set to exceed that number in 2023.

Investments made by Aldar, Abu Dhabi’s biggest listed developer, in Ras Al Khaimah’s prime assets are examples of the emirate's success in attracting investment.

Raki Phillips, chief executive at Ras Al Khaimah Tourism Development Authority. Photo: RAKTDA
Raki Phillips, chief executive at Ras Al Khaimah Tourism Development Authority. Photo: RAKTDA

In November last year, Aldar Properties acquired a beachfront plot in Ras Al Khaimah from master developer Marjan, with plans to combine the plot with land purchased as part of the DoubleTree by Hilton Resort & Spa Marjan Island acquisition earlier in 2022, in a Dh810 million ($220.55 million) deal.

In April, Aldar bought Rixos Bab Al Bahr hotel in Ras Al Khaimah in a Dh770 million transaction, and in February it acquired Al Hamra Mall in a $111.6 million deal, which was its first investment outside Abu Dhabi.

Ras Al Khaimah — which has the world's longest zip line at Jebel Jais, 64km of coastline, adventure tourism offerings and heritage sites such as Al Jazirah Al Hamra — has traditionally been popular with UAE residents and visitors from CIS markets.

The tourism sector in the emirate is set for a further boost from more international airlines establishing direct connectivity, Mr Phillips said.

Earlier this month, Qatar Airways said it will start direct flights from Doha to Ras Al Khaimah, which the airline has not operated since 2017.

The emirate will be Qatar Airways' fourth destination in the UAE after Dubai, Abu Dhabi and Sharjah, with flights scheduled to resume on November 1.

On Wednesday, RAKTDA announced its agreement with FTI Group, a Germany-based outbound tour operator, which will operate twice-weekly flights from Munich to RAK Airport, starting in the fourth quarter of this year.

The emirate also aims to boost the cruise industry and continue to push for doubling its hotel room keys to about 16,000 in the next three to five years.

“We had 8,000 keys in the market last year … but now we're looking at doubling the inventory, so for us, it's so important to continuously grow our visitor arrival numbers, and to be able to achieve success for our hotel partners”, Mr Phillips said.

RESULT

Everton 2 Huddersfield Town 0
Everton: 
Sigurdsson (47'), Calvert-Lewin (73')

Man of the Match: Dominic Calvert-Lewin (Everton)

Manchester United v Liverpool

Premier League, kick off 7.30pm (UAE)

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The biog

Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha

Favourite book: One Hundred Years of Solitude

Holiday destination: Sri Lanka

First car: VW Golf

Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters

Driverless cars or drones: Driverless Cars

IF YOU GO
 
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
 
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info

 Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.

Updated: March 19, 2023, 2:20 PM