Ras Al Khaimah expects a 20 per cent annual increase in the number of visitors to the emirate in 2021, driven by easing border restrictions in the second half of the year and robust domestic demand, its tourism development chief said.
The 2021 growth projection comes after the emirate hosted 830,000 visitors in 2020, down from 1.1 million in 2019, according to official government data.
The emirate is wooing new source markets in Europe and the Gulf to attract more tourists, increasing its hotel room supply, expanding its tourism investment budget, intensifying marketing efforts to draw remote workers and extending Covid-19 relief packages to the industry, Raki Phillips, chief executive of Ras Al Khaimah Tourism Development Authority, told The National.
"We live and survive off the international market and I'm cautiously optimistic that in the second half of the year the world is going to open up a lot more," Mr Phillips said.
"There's a lot of pent-up demand but when people want to travel, they're going to be limited in the options they can go to and the UAE will be front and centre because of how well we've handled the pandemic and because of how high our vaccination rates are."
The Covid-19 pandemic has hit global aviation and tourism industries hard, as border closures and quarantine requirements hammered demand. The UAE – a major tourism, trade and finance hub in the region – recorded a hotel occupancy rate of 51.7 per cent in 2020, a drop of 29.3 per cent from a year ago, according to a report by hospitality data and analytics specialist STR.
Revenue per available room (RevPar), a key performance metric calculated by multiplying a hotel’s average daily room rate by its occupancy rate, declined 41 per cent year-on-year to Dh216.45 ($58.90).
Ras Al Khaimah – which boasts the world's longest zipline 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.
"Occupancy in the UAE's top markets has improved significantly since the pandemic low points," Philip Wooller, STR's area director of Middle East & Africa, told The National. "Ras Al Khaimah remains an attractive staycation destination within the UAE."
The emirate recorded a 52.8 per cent occupancy and RevPar of Dh260.52 in February—the highest such levels for the market since December 2020.
The emirate is currently studying source markets with open borders and holding talks with Slovakia, Romania, Bulgaria and Poland to bring more tourists via chartered or scheduled flights, Mr Phillips said.
In terms of segments, it is targeting corporate retreats and meetings, incentives, conferencing and exhibitions travel from western European markets such as Italy and France, he said. However, some countries will take longer to re-open and the conferences segment travel is likely to recover more slowly, he added.
"There's been a tremendous amount of interest, especially for the incentives travel business," he said.
The emirate is looking to be a destination for weddings this year, after the pandemic forced couples to cancel or defer their celebrations due to restrictions on group gatherings.
"The area that I think RAK will do phenomenally well in is weddings," he said. "Once things open up and if we open with a market that wants to host weddings, I think you're going to see those coming in droves."
The government entity is extending a Covid-19 relief package to its tourism industry, allowing hotels to keep a portion of the Tourism Dirham tax until April 22 to bolster their cash flow, he said. It will also pay the cost of PCR tests for tourists staying a minimum of two nights in Ras Al Khaimah.
Last year, the authority introduced a tourism stimulus package including cash infusions, three-month relief on the Tourism Dirham tax and waived fees and fines.
Despite the ongoing pandemic, an additional 1,500 new hotel rooms will enter the market this year as the Hamptons by Hilton, Radisson, Movenpick and the Intercontinental open new properties in the emirate, he said.
"You build for the future," he said, when asked about the risk of oversupply.
The goal is to reach 10,000 hotel rooms in the next five years, up from 6,500 currently, he said. "If you take a snapshot of 2020 and base decisions just on that the industry will never survive. You base your decisions on how well the market did in a difficult time and you learn from it."
The emirate's 2021 tourism budget is "significantly" higher than last year as it invests in attractions, improving hiking trails, roads and infrastructure, he said, declining to reveal its size.
An eco-friendly hotel on Jebel Jais is in the design phase but an operator is yet to be named. More attractions will be announced this year, he said.
The emirate is diversifying the types of travellers it will attract, focusing on culture and heritage visitors, Gulf travellers, particularly from Saudi Arabia and Kuwait, and remote workers.
The Nomad programme, launched in the fourth quarter of last year to attract workers seeking to escape lockdowns with long-stay hotel packages, has garnered interest, he said.
The pandemic has brought the public and private sectors "much closer" to address the challenges, he said.
Already, Ras Al Khaimah is seeing tentative signs of a recovery in tourism with the return of visitors from the CIS markets, especially Russia, Mr Phillips said. An agreement with SCAT Airlines for direct commercial flights from eight cities in Kazakhstan starting this month is expected to draw more visitors.
Still, a return to pre-pandemic levels will take "a few years" due to a lack of common travel standards globally, he said.
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
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Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
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Starring: Rose, Jisoo, Jennie, Lisa
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Rating: 3/5
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
Test squad: Azhar Ali (captain), Abid Ali, Asad Shafiq, Babar Azam, Haris Sohail, Imam-ul-Haq, Imran Khan, Iftikhar Ahmed, Kashif Bhatti, Mohammad Abbas, Mohammad Rizwan(wicketkeeper), Musa Khan, Naseem Shah, Shaheen Afridi, Shan Masood, Yasir Shah
Twenty20 squad: Babar Azam (captain), Asif Ali, Fakhar Zaman, Haris Sohail, Iftikhar Ahmed, Imad Wasim, Imam-ul-Haq, Khushdil Shah, Mohammad Amir, Mohammad Hasnain, Mohammad Irfan, Mohammad Rizwan (wicketkeeper), Musa Khan, Shadab Khan, Usman Qadir, Wahab Riaz
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The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
How they line up for Sunday's Australian Grand Prix
1 Lewis Hamilton, Mercedes
2 Kimi Raikkonen, Ferrari
3 Sebastian Vettel, Ferrari
4 Max Verstappen, Red Bull
5 Kevin Magnussen, Haas
6 Romain Grosjean, Haas
7 Nico Hulkenberg, Renault
*8 Daniel Ricciardo, Red Bull
9 Carlos Sainz, Renault
10 Valtteri Bottas, Mercedes
11 Fernando Alonso, McLaren
12 Stoffel Vandoorne, McLaren
13 Sergio Perez, Force India
14 Lance Stroll, Williams
15 Esteban Ocon, Force India
16 Brendon Hartley, Toro Rosso
17 Marcus Ericsson, Sauber
18 Charles Leclerc, Sauber
19 Sergey Sirotkin, Williams
20 Pierre Gasly, Toro Rosso
* Daniel Ricciardo qualified fifth but had a three-place grid penalty for speeding in red flag conditions during practice
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Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
Killing of Qassem Suleimani
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
BlacKkKlansman
Director: Spike Lee
Starring: John David Washington; Adam Driver
Five stars
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.