Explore Investment Opportunities in Ras Al Khaimah

Transcription

1 Explore Investment Opportunities in Ras Al Khaimah Mina Al Arab

2 Real Madrid Resort Island Ras Al Khaimah Tourism Development Authority Government of Ras Al Khaimah Ras Al Khaimah, United Arab Emirates T +971 (0) , F +971 (0) Eduardo Huni - Commercial Manager eduardo@rasalkhaimahtourism.com

3 MESSAGE FROM CHIEF OPERATING OFFICER In May 2011, the Ras Al Khaimah Tourism Development Authority (TDA) was established following the vision of His Highness Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, with the aim of developing and promoting the emirate s tourism potential domestically, regionally and internationally. We created separate Tourism and Hospitality divisions to oversee the activities of business and hotels investment development, commercial and research activities, licencing, public relations and marketing. Here, a team of 20 professionals, speaking 7 different languages are available to support all investors, whether to conduct feasibility studies, respond to requirements, issue related licenses, offer after- opening consultancy service or provide support to all related hospitality projects. Over the last 12 months, we positioned Ras Al Khaimah as global affordable luxury destination for leisure and adventure as well as initiated new hospitality projects and hotels as part of the US$ 250 million investment of the Ras Al Khaimah Government in tourism projects, where we already received a high demand for more room inventory by various channels. During the past year, we have achieved numerous milestones in different fields: Total number of hotel visitors in 2011 recorded 835,200 vs. almost 600,000 in 2010 with an increase of 39.20% compared to In 2011 the total hotel revenue boosted to almost AED 400 million (US$108 million), stating an increase of 37.61% higher vs Average Daily Rate has shown improvement for 2011, where Beach & Resort Hotels recorded US$ in 2011 recording an increase of 9.35% vs. 2010, while City hotels recorded US$ 66.- indicating an increase of 7% higher the year Our aim is to increase the emirate s total hotel and resort room inventory to 10,000 rooms by the year 2016 as well as increase the total number of annual visitors to Ras Al Khaimah to 1.2 million by the year The Travel and Tourism sector in Ras Al Khaimah contributes with 2% of GDP and our target is to reach 9% of GDP within the coming 4 to 6 years. Working towards these targets, we already secured a number of development opportunities covering: The 627-rooms Rixos Bab Al Bahr Resort developed on the five man-made Marjan Island and scheduled to open in Q The 349-rooms Ras Al Khaimah Waldorf Astoria, scheduled to open in Q1 2013, marking the entry of the luxury Hilton Worldwide brand to the UAE. The Al Hamra Fort Hotel & Beach Resort to be re-opened in 2013 as a Hilton Hotels & Resorts property. The 309-rooms DoubleTree by Hilton Resort, Marjan Island, scheduled to open in Furthermore, Ras Al Khaimah Hospitality Group was established in November 2011 acting as Management Company on behalf of the government owned hotels, hospitality, tourism and leisure assets and launching new hospitality and restaurant brands. While there are still many goals to be accomplished, it is pleasing that a great amount of ground work has already been achieved within our first year, forming a solid foundation from which to move forward. Learn more about our achievements by visiting In this factsheet, we are introducing the emirate of Ras Al Khaimah with all the investment related aspects including global financial reports, key performance analysis as well as various feasibility studies for you to be able to explore your investment opportunities and be part of the rise of this emirate. Explore your Investment Opportunities in Ras Al Khaimah! Yours sincerely, Victor A. Louis

4 HOTEL BRANDS IN RAS AL KHAIMAH, UAE Mussandam Oman AL JEER PORT HOTELS & RESORTS SAQR PORT JEBEL JAIS MOUNTAINS Arabian Gulf MANGROVES HAJJAR MOUNTAINS RAK KHOR PORT H HILTON RESORT & SPA H HILTON CITY HOTEL H DOUBLETREE HOTEL MANGROVES H MANGROVE HOTEL H CITY HOTEL DUBAI INTERNATIONAL AIRPORT 45 MINUTES DRIVE H THE COVE ROTANA RESORT & SPA H BIN MAJID RESORT H AL HAMRA FORT & BEACH RESORT H AL HAMRA VILLAGE GOLF & BEACH RESORT H AL HAMRA PALACE BEACH RESORT H THE WALDORF ASTORIA H ACACIA HOTEL H BANYAN TREE AL WADI RAK International Airport THE GOLDEN TULIP KHATT SPRINGS Ras Al Khaimah H Fujairah H In Q1 2013, the Waldorf Astoria property will open, marking the entry of the luxury brand of Hilton Worldwide in the UAE, with 349 keys and extensive dining outlet as well as leisure and recreational facilities. 968 Keys 133 Keys Keys 349 Keys 632 Keys 130 Keys 820 Keys 126 Keys 336 Keys

5 RAS AL KHAIMAH FINANCIAL QUOTES BY INTERNATIONAL RATING AGENCIES Ras Al Khaimah Rating affirmed at A, underpinned by a modest debt burden, steady economic progress and a focused development strategy. Recent ventures have met with impressive success. New hotels enjoy solid occupancy levels, with tourist arrivals up 40% in 2011 and forecast to exceed one million this year, a fivefold increase since The recent announcement by Real Madrid football club of a One Billion USD resort complex has greatly increased marketing awareness for the Emirate. Growth is accelerating, with Ras Al Khaimah benefitting from the upgrading of regional infrastructure and new investment which plays to its comparative advantages in natural environment. Tourist arrivals are therefore growing sharply. Ras Al Khaimah s strategic location is inside a region of strong demand growth, and also positioned between Europe and India. Tourism is growing sharply as new hotels open, and occupancy rates continued to rise. April 2012 Global Rating Agency based in the USA. Ras Al Khaimah Rating affirmed at A, based on continued growth and debt reduction. Ras Al Khaimah is rapidly expanding its tourism sector. Hotels are profitable and show a strong surplus. The opening of large hotels, including the brands of Banyan Tree and Waldorf Astoria, will greatly increase the number of available hotel beds as well as the international branding of Ras Al Khaimah. With the increase in tourism, we estimate that Ras Al Khaimah's real GDP growth is 6% in 2011 and will remain above 5% over the forecast period. December 2011 International Financial Analysis based in the USA. 3

6 WHY INVEST IN RAS AL KHAIMAH? Location & Advantages Northernmost emirate of the UAE Only 45 minutes drive from Dubai International Airport, the 4th largest International Airport in the world, with: million passengers - 329,000 movements scheduled destinations and 150 airlines - Over 2/3 of the world s population lives within 8 hours flight time from Dubai 1/3 lives within 4 hours Serene and authentic, yet vibrant lifestyle based on cultural values Natural beauty and diversity of landscapes featuring beaches, mountains and desert Strategically important with an easy access to main investment and leisure markets World class infrastructure and business facilities featuring three seaports, international airport with own airline, with charter flights and telecommunication network Investor-friendly environment with 64km of shoreline ready for development Focus of Government of Ras Al Khaimah on Travel and Tourism GDP contribution to grow from 2% to 9% in the coming 4 to 6 years Tax-free! Ras Al Khaimah s free trade zone has zero tax on income and capital gains as well as no property transfer or value-added tax Safe & secured environment Affordable luxury living USD 25 billion of foreign and domestic direct investment since 2000 A booming & diversified economy with a 28% growth in GDP in 2000 One of the lowest crimes percentage in the world with a high quality of safety Geared towards moderate, steady and reliable growth Genuine demand instead of speculators, which makes the real estate market here more resilient and less susceptible to fluctuations Only one of the few areas where Hotel GOP percentage reaches 50-55% 4 Mina Al Arab

7 Ras Al Khaimah Tourism Development Authority COMPANY PROFILE The Ras Al Khaimah Tourism Development Authority (Ras Al Khaimah TDA) was established in May 2011 as a Government of Ras Al Khaimah entity to both develop and promote the emirate s tourism infrastructure and potential both domestically and abroad. DIVERSE LANDSCAPE Abu Dhabi Ajman Fujairah Sharjah Dubai Ras Al Khaimah Umm Al-Quwain Ras Al Khaimah Bahrain Arabian Gulf Qatar Gulf of Oman Abu Dhabi Al Ain Ras Al Khaimah - Mountains UNITED ARAB EMIRATES Ras Al Khaimah TDA is responsible for establishing the emirate of Ras Al Khaimah as a premier affordable luxury destination for leisure and adventure. In order to achieve its goals, the Authority has a Government mandate to license, regulate and monitor the emirate s hospitality industry. TEMPERATE CLIMATE Saudi Arabia Oman It conducts research and analysis of future tourism projects and current trends, creates and implements the branding, marketing and promotion of Ras Al Khaimah s tourism products and services, and develops, implements and supports strategies designed to encourage tourism investment into the emirate. Banyan Tree Ras Al Khaimah Beach Ras Al Khaimah - Jazirat Al Hamra RICH HERITAGE Offering a diverse landscape, rich heritage and a temperate climate, Ras Al Khaimah is an ideal getaway for quality-value leisure and adventure. The emirate presents an extensive selection of exclusive outdoor activities from mountain activities, kayaking, fishing and golfing to light aviation experiences as well as premium accommodation, an eclectic selection of international gourmet experiences and world-class spas. 5

8 OBJECTIVES MISSION To position Ras Al Khaimah as global affordable luxury destination for leisure and adventure on the local, regional and international levels. Al Hamra Fort & Beach Resort To reinforce the emirate s global business footprint through upgrading and expanding development opportunities. To position the emirate of Ras Al Khaimah as a sustainable investment destination. "Prince of Sea" Cruise Boat VISION To achieve global brand recognition as high quality worldwide destination, where visitors achieve the ultimate travel experience through a wide variety of activities within a diverse landscape. Banyan Tree Al Wadi To raise awareness of Ras Al Khaimah as a leisure destination through Public Relations and Marketing initiatives that target local, regional and international source markets for the emirate. The Cove Rotana Resort & Spa To position and promote Ras Al Khaimah as a key global affordable luxury tourism destination for leisure adventure regionally and internationally. Light Aviation To support the hotels, resorts and other tourism entities of Ras Al Khaimah by opening new international channels with Travel Wholesalers and Travel Agents worldwide. STRATEGIC TARGETS 6 In 2011, the visitors of Ras Al Khaimah reached 835,200 exceeding the target that was set of 800,000 visitors. To increase the total number of annual visitors to Ras Al Khaimah to 1.2 million by the year To increase the emirate s total hotel and resort room inventory to reach 10,000 keys by the year 2016.

9 HOTELS AND ROOM INVENTORY IN RAS AL KHAIMAH, UAE Hotels and Beach Resorts Waldorf Astoria WALDORF ASTORIA (349 KEYS) & RIXOS BAB AL BAHR (632 KEYS) TO OPEN IN Q Hotels Keys Year Keys 1,668 1,817 1,817 2,793 3,100 3,500 4,300 5,500 7,000 8,200 9,400 Hotels Only forecasted operational room numbers are stated above. City Hotels Year Keys DoubleTree by Hilton Hotels Keys ,130 1,130 1,130 1,380 1,380 1,380 1,380 1,380 1,380 Hotels Only forecasted operational room numbers are stated above. 7

10 HOTELS PERFORMANCE ANALYSIS IN RAS AL KHAIMAH, UAE Hotels and Beach Resorts Q Banyan Tree Al Wadi Occupancy % Average Daily Rate in US$ Revenue PerAvailable Room in US$ City Hotels Q Hilton Ras Al Khaimah Hotel Occupancy % Average Daily Rate in US$ Revenue PerAvailable Room in US$ 8

11 HOTELS PERFORMANCE INDICATORS IN RAS AL KHAIMAH, UAE Hotels & Beach Resorts Hilton Ras Al Khaimah Resort & Spa Occupancy % Actual + Forecast Average Daily Rate in US$ Actual + Forecast City Hotels Acacia Hotel (Bin Majid Group) Occupancy % Actual + Forecast Average Daily Rate in US$ Actual + Forecast 9

12 NUMBER OF HOTEL VISITORS TO RAS AL KHAIMAH, UAE Number of visitors has been considerably increasing year-on-year reaching 835,200 in 2011 surpassing our target of 800, Year Hotel Visitors 235K 542K 600K 835K 1.1M 1.2M 1.5M 1.7M 1.9M 2.0M M 2.3M 2.5M RAK Swedish CharterFlight passengers arriving to RAK International Airport (Nov. 2011) TOP 5 SOURCE MARKETS BY COUNTRY TO RAS AL KHAIMAH, UAE Germany 300K 460K 510K 600K 700K 750K 800K 830K 900K 950K UAE 275K 424K 500K 550K 620K 700K 720K 740K 775K 800K Russia 80K 100K 125K 170K 200K 220K 240K 250K 280K 300K Sweden 7K 60K 70K 100K 110K 140K 160K 170K 200K 220K UK 50K 61K 69K 100K 110K 140K 170K 180K 210K 250K

13 HOTELS KEY PERFORMANCE ANALYSIS IN RAS AL KHAIMAH, UAE SOURCE MARKETS: Q Country Room Nights Room Revenue $ Guests Germany 72,674 8,034, ,611 UAE 49,472 6,631, ,679 Russia 20,497 2,684, ,503 Sweden 8,615 1,226, ,685 UK 8,190 1,565, ,336 CURRENT ROOM INVENTORY: HOTELS AND BEACH RESORTS Hotel Name Keys Al Hamra Fort Hotel & Beach Resort 266 Banyan Tree Al Wadi 101 Banyan Tree Ras Al Khaimah Beach 32 Bin Majid Beach Hotel 136 Bin Majid Beach Resort 125 Al Hamra Palace Beach Resort 117 Al Hamra Village Golf & Beach Resort 219 The Cove Rotana Resort 346 Hilton Ras Al Khaimah Resort & Spa 475 TOTAL 1,817 Al Hamra Palace Beach Resort CITY HOTELS Hotel Name Keys Acacia Hotel 373 City Hotel 88 DoubleTree by Hilton 126 Golden Tulip Khatt Springs Resort & Spa 130 Mangrove Hotel 186 Hilton Ras Al Khaimah Hotel 227 TOTAL 1,130 UPCOMING HOTELS Q KEYS Rixos Bab Al Bahr 632 Waldorf Astoria Ras Al Khaimah 349 Banyan Tree Ras Al Khaimah Beach GROSS DOMESTIC PRODUCT Year 2010 Year % GDP Contribution 15% GDP Contribution 2,500 Keys 10,000 Keys 68% Occupancy 85% Occupancy 600,000 Tourists 2.5 Million Tourists Banyan Tree Al Wadi 11

14 HOTELS KEY PERFORMANCE ANALYSIS IN RAS AL KHAIMAH, UAE KEY PERFORMANCE INDICATORS: HOTELS AND BEACH RESORTS US$ FY 2011 FY 2010 Variance Q Q Variance Occupancy 70.87% 62.25% 8.62% 81.55% 78.49% 3.06% ADR % % RevPar % % Room Revenue 61,794, ,114, % 21,665, ,135, % KEY PERFORMANCE INDICATORS: CITY HOTELS US$ FY 2011 FY 2010 Variance Q Q Variance Occupancy 65.07% 63.15% 1.92% 80.16% 68.65% 11.51% ADR % % RevPar % % Room Revenue 14,358, ,224, % 5,210, ,967, % Other Areas: Combined FY 2011 FY 2010 Variance Q Q Variance Hotel Visitors 835, , , ,750 N/A N/A Employees N/A N/A N/A 2,898 N/A N/A Average LOS ERNST & YOUNG: HOTEL BENCHMARK FY 2011 FY 2010 Variance Q Q Variance Occupancy Abu Dhabi-Overall 75% 73% 2% 81% 81% 0.0% Dubai-Beach 80% 79% 1% 83% 86% -3.0% Ras Al Khaimah-Beach 70.87% 62.25% 8.62% 87.73% 89.19% -1.50% ADR US$ Abu Dhabi-Overall % 214% 253% -15.5% Dubai-Beach % 406% 383% 62% Ras Al Khaimah-Beach % % RevPar US$ Abu Dhabi-Overall % 174% 207% -16.0% Dubai-Beach % 341% 331% 2.8% Ras Al Khaimah-Beach % % SOURCE MARKETS: Q FULL YEAR 2011 Country Room Nights Room Revenue $ Guests Room Nights Room Revenue $ Guests Germany 25,660 3,018, , ,387 10,554, ,565 UAE 16,889 2,280, , ,416 32,403, ,033 Russia 9,105 1,154, ,259 26,741 3,402, ,462 Sweden 2, , ,774 4, , ,276 UK 2, , ,201 16,624 2,446, ,581 12

15 BENCHMARK - HOTELS IN UAE Full Year 2011 Comparison Ras Al Khaimah Emirate Ras Al Khaimah - Beach Dubai - Beach Abu Dhabi - Overall Occupancy 71% 80% 75% Average Daily Rate $133 $315 $205 Ras Al Khaimah - Beach Dubai - Beach Dubai Abudhabi - Overall Occupancy % Average Daily Rate US$ 2012 Comparison February year-to-date Emirate Ras Al Khaimah - Beach Occupancy 78% (+7%) Average Daily Rate $159 (+20%) Abu Dhabi Dubai - Beach 81% $392 Abu Dhabi - Overall 80% $220 Ras Al Khaimah - Beach Dubai - Beach Abudhabi - Overall Occupancy % Average Daily Rate US$ Over the last 12 months, we have positioned Ras Al Khaimah as global affordable luxury destination for leisure and adventure on the local, regional and international levels. Data Source: Ernst & Young Benchmark Middle East Hotel Benchmark Survey Report 13

16 VARIOUS MARKETS PERFORMANCE (COMPARABLE DESTINATIONS) Full Year 2011 Area Occupancy Average Daily Rate Revenue per Available Room 2011% 2010% Change Change Change United Arab Emirates Abu Dhabi % % Al Ain % % Dubai - Beach % % Dubai - City % % *Ras Al Khaimah - Beach % % *Ras Al Khaimah - City % % Bahrain Manama % % Egypt Cairo - City % % Cairo - Overall % % Hurghada % % Sharm El Sheikh % % Jordan Amman % % Kuwait Kuwait % % Lebanon Beirut % % Oman Muscat % % Qatar Doha % % Saudi Arabia Jeddah % % Madina % % Makkah % % Riyadh % % Data Sources: Ernst & Young (for Middle East Countries & Cities) Ras Al Khaimah figures are provided by Ras Al Khaimah Tourism Development Authority (for Ras Al Khaimah Hotels) Currency: US$ RAS AL KHAIMAH Beach & Resort Hotels recorded the HIGHEST GROWTH in occupancy, +8.6%. RAS AL KHAIMAH RANKED 2 ND in Average Daily Rate growth with +9.4% in Beach & Resort and +7% in City hotels. RAS AL KHAIMAH Beach & Resort Hotels has the HIGHEST GROWTH in Revenue per available room, +24.5%. 1 Abu Dhabi 2 Al Ain 3 Dubai-beach 4 Dubai-city 5 Ras Al Khaimah- Beach 6 Ras Al Khaimah- City 7 Manama 8 Cairo-City 9 Cairo-Overall 10 Hurghada 11 Sharm Al Sheikh 12 Amman 13 Kuwait 14 Beirut 15 Muscat 16 Doha 17 Jeddah 18 Madina 19 Makkah 20 Riyadh RAS AL KHAIMAH is one of the few cities with GROWTH IN ALL KEY PERFORMING AREAS. Occupancy Average Daily Rate Revenue PerAvailable Room

17 TRAVEL & TOURISM: ECONOMIC IMPACT 2012 UNITED ARAB EMIRATES GDP: Direct Contribution 2011 = US$ 83.8bn (6.5% of total GDP) Forecast 2012 = to rise by 4.6%, and 4.2% pa, from , to AED 132.4bn in 2022 (in constant 2011 prices). GDP: Total Contribution 2011 = US$ 175.0bn (13.5% of GDP) Forecast 2012 = to rise by 4.5% and 4.3% pa to US$ 277.8bn in EMPLOYMENT: Direct Contribution 2011 = 166,000 jobs (4.6% of total employment) Forecast 2012 = to rise by 4.2% and by 3.2% pa to 236,000 jobs (5.0% of total employment) in EMPLOYMENT: Total Contribution 2011 = 388,000 jobs (10.7% of total employment) Forecast 2012 = to rise by 4.0% to 403,500 jobs and rise by 3.1% pa to 546,000 jobs (11.6% of total employment) in 2022 VISITORS EXPORTS 011 AED 110.5bn (10.2% of total exports) Forecast 2012 = to grow by 1.7% in 2012 and by 4.0% pa from , to AED 167.1bn in 2022 (8.1% of total) INVESTMENT 2011 = AED 76.5bn or 25.5% of total investmentforecast 2012 = to rise by 11.7% and by 4.9% pa for the next 10 years to AED 137.9bn in 2022 (25.7% of total). World Ranking (Out of 181 Regions): Relative importance of Travel & Tourism s total contribution to GDP 22 ABSOLUTE Size in RELATIVE Contribution to GDP in GROWTH 2012 forecast 86 LONG-TERM GROWTH Forecast Total Contribution of Travel & Tourism to GDP AEDbn Direct Indirect Induced Breakdown of Travel & Tourism s Total Contribution to GDP and Employment 2011 GDP (2011 AEDbn) Direct +Indirect +Induced Employment ( 000) =Total contribution of Travel & Tourism 15

18 TRAVEL & TOURISM: ECONOMIC IMPACT 2012 MIDDLE EAST GDP: Direct Contribution 2011 = US$ 71.8bn (3.2% of total GDP) Forecast 2012 = to rise by 3.0%, and 4.1% pa, from , to US$ 110.6bn in 2022 (in constant 2011 prices). GDP: Total Contribution 2011 = US$ 180.8bn (8.1% of GDP) Forecast 2012 = to rise by 3.1% and 4.2% pa to US$ 280.6bn in EMPLOYMENT: Direct Contribution 2011 = 1,756,000 jobs (3.0% of total employment) Forecast 2012 = to fall by 0.6% and rise by 2.4% pa to 2,220,000 jobs (2.9% of total employment) in EMPLOYMENT: Total Contribution 2011 = 4,528,000 jobs (7.8% of total employment) Forecast 2012 = to fall by 0.6% to 4,500,500 jobs and rise by 2.5% pa to 5,737,000 jobs (7.6% of total employment) in 2022 VISITORS EXPORTS 2011 US$ 70.1bn (5.6% of total exports) Forecast 2012 = to grow by 0.1% in 2012 and by 3.7% pa from , to US$ 101.3bn in 2022 (5.3% of total) INVESTMENT 2011 = US$ 37.9bn or 7.6% of total investment Forecast 2012 = to rise by 8.5% and by 4.8% pa for the next 10 years to US$ 65.8bn in 2022 (8% of total). World Ranking (Out of 12 Regions): Relative importance of Travel & Tourism s total contribution to GDP 7 ABSOLUTE Size in RELATIVE Contribution to GDP in GROWTH 2012 forecast 7 LONG-TERM GROWTH Forecast Total Contribution of Travel & Tourism to GDP USDbn Direct Indirect Induced Breakdown of Travel & Tourism s Total Contribution to GDP and Employment 2011 GDP and Employment Direct +Indirect +Induced 953 Employment ( 000) =Total contribution of Travel & Tourism 16

19 TRAVEL & TOURISM: ECONOMIC IMPACT 2012 WORLD GDP: Direct Contribution 2011 = US$ 1,972.8bn (2.8% of total GDP) Forecast 2012 = to rise by 2.8%, and 4.2% pa, from , to US$ 3,056.2bn in 2022 (in constant 2011 prices). GDP: Total Contribution 2011 = US$ 6,346.1bn (9.1% of GDP) Forecast 2012 = to rise by 2.8% and 4.3% pa to US$ 9,939bn in EMPLOYMENT: Direct Contribution 2011 = 98,031,500 jobs (3.3% of total employment Forecast 2012 = to rise by 2.3% and 1.9% pa to 120,470,000 jobs (3.6% of total employment) in EMPLOYMENT: Total Contribution 2011 = 254,941,000 jobs (8.7% of total employment) Forecast 2012 = to rise by 2.0% to 260,093,000 jobs and 2.3% pa to 327,922,000 jobs (9.8% of total employment) in VISITORS EXPORTS 2011 US$ 1,170.6bn (5.3% of total exports) Forecast 2012 = to grow by 1.7% in 2012 and by 3.6% pa from , to US$ 1,694.7bn in 2022 (4.3% of total) INVESTMENT 2011 = US$ 743.0bn or 4.9% of total investment Forecast 2012 = to rise by 3.5% and by 5.6% pa for the next 10 years to US$ 1,320.4bn in 2022 (5.1% of total). World Ranking (Out of 12 Regions): Relative importance of Travel & Tourism s total contribution to GDP Total Contribution of Travel & Tourism to GDP Breakdown of Travel & Tourism s Total Contribution to GDP and Employment , USDbn GDP (2011 USDbn) 10,000 8, ,000 4,000 2, Direct Indirect Employment ( 000) Direct Indirect Induced +Induced =Total contribution of Travel & Tourism 17

20 HOTELS MASTERPLAN UNDER DEVELOPMENT AL MARJAN ISLAND - RAS AL KHAIMAH, UAE Al Marjan Island (Arabic name for Coral Islands ) is an exhilarating project that provides the emirate of Ras Al Khaimah with a unique opportunity for creating a world-class tourist, commercial and residential development on a specially created group of islands. ISLAND 4 ISLAND 3 This is the first manmade island project developed in Ras Al Khaimah, which is located 27 kilometers southwest of Ras Al Khaimah City Centre. ISLAND 2 Al Marjan upon its completion will provide a mix use development that caters to premium lifestyle living for discerning customers from the tranquil residential area to the more vibrant commercial and leisure activities. ISLAND 1 PENINSULA A cluster of four coral-shaped, interconnected islands, a peninsula extending 4.5 kilometers out into the sea and covering an area of 2.7 million sq. meter, expanding the natural coast line by an additional 21 kilometers. The entire island is protected by a superb natural rock breakwaters that establishes the long term longevity of the island and creates a haven for enhancing marine life. Al Marjan Islands dredging, reclamation and rock revetment works utilized modern techniques such as surface filling with coarse earth material, underwater sand pumping and deep sea sand quarry outsourcing instead of hostile dredging. 18

21 IN THE PIPELINE - RIXOS BAB AL BAHR Rixos Bab Al Bahr is a fine resort hotel with 627 rooms and suites. 14 Restaurants and Bars offering an array of multi dining food and beverage outlets. ISLAND 2 Rich roster of leisure facilities featuring the signature Rixos Royal Spa with a marvelous Turkish Hamman. ISLAND 1 The iconic Rixos Brand extends its legacy to Ras Al Khaimah, with Rixos Bab Al Bahr, the first all inclusive property of this magnitude in the UAE. PENINSULA IN THE PIPELINE - REAL MADRID RESORT ISLAND The first stadium open to the sea Amusement park for fans and families 1st hologram football show Real Madrid museum Marina with yacht club Luxury resort with 60 bungalows 48 villas 600 sqm each Five star hotel Beach resort 450 apartments ISLAND 3 Football giant Real Madrid has teamed up with the Government of Ras Al Khaimah to develop a billion dollar football theme park. 19

22 HOTELS MASTERPLAN UNDER DEVELOPMENT MINA AL ARAB - RAS AL KHAIMAH, UAE Ras Al Khaimah introduces Mina Al Arab, a new waterfront community, where lush landscaping, protected coastal wetlands and natural pristine beaches come together with homes, hotels and world-class amenities to shape a vacation experience. Mina Al Arab will showcase 4 and 5 stars hotels & resorts offering 5,000 to 7,000 Keys. 20

23 AL MARJAN ISLAND - RAS AL KHAIMAH, UAE Available Plots Plot No. Island Plot Area (Sq.ft) Plot Area (Sq.m) FAR BUA (Sq. ft) Comments Status Value / AED 250 conversion per Sq. Ft Value in US $ (conversion 3.67) per Sq. Ft HR 001B PENINSULA 432, , ,512, HOTELS & RESORTS Terminated Available 108,041, ,439, HR 003A PENINSULA 303, , ,063, MIXED USE Terminated Available 75,974, ,701, HR , , ,039, HOTELS & RESORTS Terminated Available 86,645, ,609, HR , , , HOTELS & RESORTS Terminated Available 69,994, ,072, C , , , COMMERCIAL Available Not Sold Before 29,294, ,982, HR , , ,403, HOTELS & RESORTS Available Not Sold Before 116,965, ,870, APT002B 2 167, , , APARTMENT Terminated Available 41,874, ,410, APT002C 2 153, , , APARTMENT Terminated Available 38,470, ,482, APT.004A 2 107, , APARTMENT Defaulting But Not Terminated 26,909, ,332, V , , , VILLAS Terminated Available 56,457, ,383, V , , , VILLAS Terminated Available 19,213, ,235, BFR , , , RESIDENTIAL G+8 Defaulting But Not Terminated 34,555, ,415, BFR , , , RESIDENTIAL G+8 Terminated Available 30,507, ,312, BFR , , , RESIDENTIAL G+8 Terminated Available 49,631, ,523, BFR 05AB 4 126, , , RESIDENTIAL G+8 Terminated Available 31,541, ,594, BFR , , , RESIDENTIAL G+6 Terminated Available 39,544, ,775, BFR , , , RESIDENTIAL G+8 Defaulting But Not Terminated 29,417, ,015, BFR , , , RESIDENTIAL G+8 Defaulting But Not Terminated 37,270, ,155, BFR , , , RESIDENTIAL G+8 Defaulting But Not Terminated 33,034, ,001, BFR , , , RESIDENTIAL G+8 Defaulting But Not Terminated 28,298, ,710, BFR , , , RESIDENTIAL G+8 Defaulting But Not Terminated 52,818, ,391, (Land rates are subject to change based on availability) 21

24 AL MARJAN ISLAND - RAS AL KHAIMAH, UAE Available Plots Plot No. Island Plot Area (Sq.ft) Plot Area (Sq.m) FAR BUA (Sq. ft) Comments Status Value / AED 250 conversion per Sq. Ft Value in US $ (conversion 3.67) per Sq. Ft BV , , , VILLA G+2 Terminated Available 24,263, ,611, HRH , , ,405, HOTEL G+12 Terminated Available 70,261, ,144, HRH-02A 4 100, , , HOTEL G+12 Reserved 25,066, ,830, HRH-02C 4 76, , , HOTEL G+12 Reserved 19,113, ,207, HRH-02B 4 62, , , HOTEL G+12 Reserved 15,552, ,237, HRH , , ,442, HOTEL G+12 Reserved 72,105, ,647, HRH , , ,405, HOTEL G+12 Reserved 70,280, ,149, HRH , , ,400, HOTEL G+12 Reserved 70,028, ,081, HRH , , ,400, HOTEL G+12 Terminated Available 70,049, ,087, HRL , , , RESORT G+6 Reserved 32,985, ,987, HRL , , , RESORT G+6 Reserved 33,732, ,191, HRL , , , RESORT G+6 Reserved 34,496, ,399, HRL , , , RESORT G+6 Reserved 34,459, ,389, HRL , , , RESORT G+6 Terminated Available 33,693, ,180, HRL , , , RESORT G+6 Terminated Available 33,076, ,012, PLOTS 6,702, , ,079, ,675,626, ,574,034.0 (Land rates are subject to change based on availability) 22

25 FEASIBILITY STUDIES: RAS AL KHAIMAH HOTELS 10-Years Plan KEY PERFORMANCE INDICATORS: CITY HOTELS Currency - US$ Cost per Key 140, KEYS 4 - STAR INVESTMENT COST BREAKDOWN SUMMARY - PLAN 42,000, (no. of keys X cost per key) Land Value/Cost=35,000 sq. meters 25,663, (376, sq. feet X AED 250) TOTAL INVESTMENT COST 67,663, Year Plan Hotel Revenue 199,490, Year Total Gross Operating Profit 79,796, Total Investment Cost 67,663, years KEY PERFORMANCE INDICATORS: CITY HOTELS Currency - US$ Cost per Key 200, ,000, (no. of keys X cost per key) Land Value/Cost=35,000 sq. meters 25,663, (376, sq. feet X AED 250) TOTAL INVESTMENT COST 85,663, Year Plan Hotel Revenue 257,649, Year Total Gross Operating Profit 103,059, Total Investment Cost 85,663, years 300 ROOMS 5 - STAR INVESTMENT COST BREAKDOWN SUMMARY - PLAN KEY PERFORMANCE INDICATORS: CITY HOTELS Currency - US$ Cost per Key 140, ,000, (no. of keys X cost per key) Land Value/Cost=50,000 sq. meters 36,661, (538,195 sq. feet X AED 250) TOTAL INVESTMENT COST 92,661, Year Plan Hotel Revenue 268,687, Year Total Gross Operating Profit 107,474, Total Investment Cost 92,661, years 400 KEYS 4 -STAR INVESTMENT COST BREAKDOWN SUMMARY - PLAN KEY PERFORMANCE INDICATORS: CITY HOTELS Currency - US$ Cost per Key 200, ,000, (no. of keys X cost per key) Land Value/Cost=50,000 sq. meters 36,661, (538,195 sq. feet X AED 250) TOTAL INVESTMENT COST 116,661, Year Plan Hotel Revenue 352,385, Year Total Gross Operating Profit 140,954, Total Investment Cost 116,661, years 400 ROOMS 5 - STAR INVESTMENT COST BREAKDOWN SUMMARY - PLAN KEY PERFORMANCE INDICATORS: CITY HOTELS Currency - US$ Cost per Key 140, ,000, (no. of keys X cost per key) Land Value/Cost=60,000 sq. meters 43,994, (645,834 sq. feet X AED 250) TOTAL INVESTMENT COST 113,994, Year Plan Hotel Revenue 329,749, Year Total Gross Operating Profit 131,899, Total Investment Cost 113,994, years 500 KEYS 4 - STAR INVESTMENT COST BREAKDOWN SUMMARY - PLAN KEY PERFORMANCE INDICATORS: CITY HOTELS Currency - US$ Cost per Key 200, ,000, (no. of keys X cost per key) Land Value/Cost=60,000 sq. meters 43,994, (645,834 sq. feet X AED 250) TOTAL INVESTMENT COST 143,994, Year Plan Hotel Revenue 439,968, Year Total Gross Operating Profit 175,987, Total Investment Cost 143,994, years 500 ROOMS 5 - STAR INVESTMENT COST BREAKDOWN SUMMARY - PLAN 23

26 FEASIBILITY STUDY: 300 KEYS / 4-STARS HOTELS 10-Years Plan Currency - AED Average Daily Food & Total Hotel 40% Gross YEAR Occupancy Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,253, ,901, ,000, ,154, ,061, % ,015, ,606, ,000, ,621, ,048, % ,750, ,300, ,000, ,050, ,020, % ,572, ,028, ,000, ,600, ,040, % ,676, ,870, ,000, ,547, ,218, % ,169, ,267, ,000, ,437, ,174, % ,752, ,300, ,000, ,052, ,621, % ,450, ,980, ,000, ,430, ,572, % ,099, ,639, ,000, ,738, ,495, % ,068, ,427, ,000, ,495, ,598, Total 515,806, ,322, ,000, ,128, ,851, Investment Cost Breakdown Cost per Key (# keys x cost per key) Land value/cost = 35,000 sq meters (376, sq. meters x AED 250) TOTAL INVESTMENT COST 513, ,140, ,184, ,324, Summary 10-Year Total Hotel Revenue 10-Year Total Gross Operating Profit Total Investment Cost 732,128, ,851, ,324, years Currency - US$ YEAR Occupancy Average Daily Food & Total Hotel 40% Gross Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,513, ,605, , ,390, ,556, % ,993, ,797, , ,062, ,825, % ,465, ,986, , ,724, ,089, % ,962, ,184, , ,419, ,367, % ,535, ,414, , ,222, ,689, % ,487, ,795, , ,555, ,222, % ,191, ,076, , ,540, ,616, % ,653, ,261, , ,188, ,875, % ,103, ,441, , ,817, ,126, % ,639, ,655, , ,568, ,427, Total 140,546, ,218, ,724, ,490, ,796, Investment Cost Breakdown Summary Cost per Key (# keys x cost per key) Land value/cost = 35,000 sq meters (376, sq. meters x AED 250) TOTAL INVESTMENT COST 140, ,000, ,663, ,663, Year Total Hotel Revenue 10-Year Total Gross Operating Profit Total Investment Cost 199,490, ,796, ,663, years 24

27 FEASIBILITY STUDY: 400 KEYS / 4-STARS HOTELS 10-Years Plan Currency - AED Average Daily Food & Total Hotel 40% Gross YEAR Occupancy Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,069, ,827, ,000, ,897, ,359, % ,073, ,629, ,000, ,702, ,481, % ,232, ,892, ,000, ,124, ,249, % ,227, ,091, ,000, ,318, ,927, % ,511, ,004, ,000, ,515, ,206, % ,952, ,381, ,000, ,333, ,133, % ,024, ,609, ,000, ,633, ,853, % ,305, ,922, ,000, ,228, ,691, % ,430, ,172, ,000, ,603, ,441, % ,374, ,349, ,000, ,724, ,089, Total 697,201, ,880, ,000, ,082, ,432, Investment Cost Breakdown Cost per Key (# keys x cost per key) Land value/cost = 50,000 sq meters (538,195 sq.ft x AED 250) TOTAL INVESTMENT COST 513, ,520, ,548, ,068, Summary 10-Year Total Hotel Revenue 10-Year Total Gross Operating Profit Total Investment Cost 986,082, ,432, ,068, years Currency - US$ YEAR Occupancy Average Daily Food & Total Hotel 40% Gross Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,550, ,220, , ,042, ,817, % ,096, ,438, , ,807, ,122, % ,956, ,782, , ,012, ,604, % ,773, ,109, , ,154, ,061, % ,395, ,358, , ,025, ,410, % ,333, ,733, , ,338, ,935, % ,170, ,068, , ,510, ,404, % ,064, ,425, , ,762, ,904, % ,915, ,766, , ,954, ,381, % ,717, ,087, , ,077, ,831, Total 189,973, ,989, ,724, ,687, ,474, Investment Cost Breakdown Summary Cost per Key (# keys x cost per key) Land value/cost = 50,000 sq meters (538,195 sq.ft x AED 250) TOTAL INVESTMENT COST 140, ,000, ,661, ,661, Year Total Hotel Revenue 10-Year Total Gross Operating Profit Total Investment Cost 268,687, ,474, ,661, years 25

28 FEASIBILITY STUDY: 500 KEYS / 4-STARS HOTELS 10-Years Plan Currency - AED YEAR Occupancy Average Daily Food & Total Hotel 40% Gross Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,358, ,143, ,000, ,501, ,800, % ,791, ,516, ,000, ,307, ,722, % ,043, ,417, ,000, ,460, ,984, % ,597, ,439, ,000, ,036, ,414, % ,016, ,406, ,000, ,423, ,769, % ,615, ,246, ,000, ,861, ,344, % ,200, ,480, ,000, ,680, ,472, % ,397, ,559, ,000, ,956, ,382, % ,222, ,089, ,000, ,311, ,524, % ,030, ,612, ,000, ,642, ,656, Total 857,272, ,908, ,000, ,210,180, ,072, Investment Cost Breakdown Cost per Key 513, ,900, (# keys x cost per key) Land value/cost = 60,000 sq meters 161,458, (645,834 sq.ft x AED 250) TOTAL INVESTMENT COST 418,358, Summary 10-Year Total Hotel Revenue 1,210,180, Year Total Gross Operating Profit 484,072, Total Investment Cost 418,358, years Currency - US$ Average Daily Food & Total Hotel 40% Gross YEAR Occupancy Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,171, ,668, , ,112, ,844, % ,106, ,042, , ,421, ,368, % ,720, ,288, , ,280, ,712, % ,416, ,566, , ,255, ,102, % ,075, ,830, , ,177, ,471, % ,328, ,331, , ,932, ,172, % ,850, ,940, , ,062, ,025, % ,266, ,506, , ,045, ,818, % ,308, ,923, , ,504, ,401, % ,346, ,338, , ,956, ,982, Total 233,589, ,435, ,724, ,749, ,899, Investment Cost Breakdown Cost per Key 140, (# keys x cost per key) 70,000, Land value/cost = 60,000 sq meters (645,834 sq.ft x AED 250) 43,994, TOTAL INVESTMENT COST 113,994, Summary 10-Year Total Hotel Revenue 29,749, Year Total Gross Operating Profit 131,899, Total Investment Cost 113,994, years 26

29 FEASIBILITY STUDY: 300 KEYS / 5-STARS HOTELS 10-Years Plan Currency - AED YEAR Occupancy Average Daily Food & Total Hotel 40% Gross Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,673, ,469, ,000, ,142, ,457, % ,621, ,648, ,000, ,270, ,108, % ,085, ,034, ,000, ,119, ,047, % ,890, ,156, ,000, ,046, ,618, % ,482, ,192, ,000, ,675, ,070, % ,473, ,389, ,000, ,862, ,744, % ,970, ,388, ,000, ,358, ,143, % ,831, ,532, ,000, ,364, ,745, % ,794, ,717, ,000, ,511, ,404, % ,446, ,778, ,000, ,224, ,889, Total 668,267, ,307, ,000, ,574, ,229, Investment Cost Breakdown Cost per Key 734, (# keys x cost per key) 220,200, Land value/cost = 35,000 sq meters (376, sq. meters x AED 250) 94,184, TOTAL INVESTMENT COST 314,384, Summary 10-Year Total Hotel Revenue 945,574, Year Total Gross Operating Profit 378,229, Total Investment Cost 314,384, years Currency - US$ Average Daily Food & Total Hotel 40% Gross YEAR Occupancy Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,624, ,849, , ,747, ,298, % ,428, ,171, , ,871, ,748, % ,372, ,548, , ,193, ,277, % ,136, ,854, , ,263, ,705, % ,842, ,137, , ,252, ,100, % ,657, ,462, , ,392, ,557, % ,337, ,735, , ,345, ,938, % ,117, ,047, , ,437, ,374, % ,924, ,369, , ,567, ,826, % ,647, ,658, , ,578, ,231, Total 182,089, ,835, ,724, ,649, ,059, Investment Cost Breakdown Cost per Key 200, (# keys x cost per key) 60,000, Land value/cost = 35,000 sq meters (376, sq. meters x AED 250) 25,663, TOTAL INVESTMENT COST 85,663, Summary 10-Year Total Hotel Revenue 257,649, Year Total Gross Operating Profit 103,059, Total Investment Cost 85,663, years 27

30 FEASIBILITY STUDY: 400 KEYS / 5-STARS HOTELS 10 -Years Plan Currency - AED YEAR Occupancy Average Daily Food & Total Hotel 40% Gross Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,777, ,710, ,000, ,487, ,395, % ,942, ,976, ,000, ,918, ,167, % ,585, ,034, ,000, ,619, ,647, % ,176, ,470, ,000, ,647, ,658, % ,355, ,142, ,000, ,497, ,998, % ,587, ,434, ,000, ,021, ,808, % ,289, ,915, ,000, ,204, ,881, % ,421, ,168, ,000, ,589, ,635, % ,658, ,063, ,000, ,721, ,888, % ,818, ,727, ,000, ,545, ,218, Total 916,609, ,643, ,000, ,293,253, ,301, Investment Cost Breakdown Cost per Key 734, (# keys x cost per key) 293,600, Land value/cost = 50,000 sq meters (538,195 sq.ft x AED 250) 134,548, TOTAL INVESTMENT COST 428,148, Summary 10-Year Total Hotel Revenue 1,293,253, Year Total Gross Operating Profit 517,301, Total Investment Cost 428,148, years Currency - US$ Average Daily Food & Total Hotel 40% Gross YEAR Occupancy Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,920, ,368, , ,560, ,824, % ,782, ,713, , ,768, ,307, % ,502, ,001, , ,776, ,710, % ,481, ,392, , ,146, ,258, % ,619, ,847, , ,740, ,896, % ,500, ,200, , ,973, ,389, % ,509, ,603, , ,385, ,954, % ,362, ,945, , ,580, ,432, % ,972, ,188, , ,433, ,773, % ,105, ,642, , ,020, ,408, Total 249,757, ,902, ,724, ,385, ,954, Investment Cost Breakdown Cost per Key 200, (# keys x cost per key) 80,000, Land value/cost = 50,000 sq meters (538,195 sq.ft x AED 250) 36,661, TOTAL INVESTMENT COST 116,661, Summary 10-Year Total Hotel Revenue 352,385, Year Total Gross Operating Profit 140,954, Total Investment Cost 116,661, years 28

31 FEASIBILITY STUDY: 500 KEYS / 5-STARS HOTELS 10-Years Plan Currency - AED YEAR Occupancy Average Daily Food & Total Hotel 40% Gross Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,519, ,607, ,000, ,127, ,450, % ,578, ,231, ,000, ,809, ,723, % ,059, ,023, ,000, ,083, ,233, % ,822, ,528, ,000, ,350, ,340, % ,298, ,319, ,000, ,617, ,846, % ,151, ,860, ,000, ,011, ,004, % ,605, ,242, ,000, ,847, ,938, % ,944, ,577, ,000, ,522, ,808, % ,566, ,026, ,000, ,593, ,837, % ,659, ,063, ,000, ,722, ,689, Total 1,146,204, ,481, ,000, ,614,685, ,874, Investment Cost Breakdown Cost per Key 734, ,000, (# keys x cost per key) Land value/cost = 60,000 sq meters 161,458, (645,834 sq.ft x AED 250) TOTAL INVESTMENT COST 528,458, Summary 10-Year Total Hotel Revenue 1,614,685, Year Total Gross Operating Profit 645,874, Total Investment Cost 528,458, years Currency - US$ Average Daily Food & Total Hotel 40% Gross YEAR Occupancy Rate Room Revenue Beverage Sundry Revenue Revenue Operating Profit Revenue % ,299, ,519, , ,091, ,836, % ,405, ,962, , ,640, ,456, % ,626, ,450, , ,349, ,139, % ,651, ,860, , ,784, ,713, % ,871, ,348, , ,492, ,396, % ,921, ,768, , ,962, ,984, % ,862, ,144, , ,279, ,511, % ,772, ,508, , ,553, ,021, % ,759, ,903, , ,935, ,574, % ,146, ,458, , ,878, ,351, Total 312,317, ,926, ,724, ,968, ,987, Investment Cost Breakdown Cost per Key 200, (# keys x cost per key) 100,000, Land value/cost = 60,000 sq meters (645,834 sq.ft x AED 250) 43,994, TOTAL INVESTMENT COST 143,994, Summary 10-Year Total Hotel Revenue 439,968, Year Total Gross Operating Profit 175,987, Total Investment Cost 143,994, years 29