RAK Builds Village For Thousands of Staff Amid Hotel Sector Boom

08.08.2024 - 16:06 / skift.com / Ras Al-Khaimah / Josh Corder

The Ras Al Khaimah government is building a housing village for thousands of hotel staff as the emirate’s hospitality sector booms.

Some 6,000 people currently work in Ras Al Khaimah’s hotel industry – around 5% of total employment – but the emirate’s rush of new hotels could increase the workforce to 25,000 employees by 2030.

A Wynn resort alone, opening in 2027, is expected to employ 7,000 people, and Wynn announced this week that it was buying additional land for future development.

RAK Hospitality Holding, a state-owned entity, says phase 1 is expected to be completed by next April. RAK Holding didn’t share how many people will live on the campus, but said that phase 2, to commence this month, will be “twice the size” of phase 1.

“There will be significant demand for where hotel staff will live [in Ras Al Khaimah],” said RAK Hospitality Logistics general manager Jari Ylipaavalniemi, during a webinar for investors and stakeholders in the emirate’s hotel sector. “The accommodation [staff campus] will be close to Marjan Island and Al Hamra, where we expect the most growth.”

The campus will comprise buildings dedicated to entry-level level staff, as well as buildings for middle management and junior management. Non-managerial staff will live in studio apartments sharing with one other person, while managerial staff will all have single-occupancy ensuite units.

“This is so we can attract and retain the right talent,” said Ylipaavalniemi. “A significant number of our employees are line staff and supervisory level, meaning they need accommodation provided by us.”

Currently, 4- and 5-star hotels account for 82% of the total hotel inventory in RAK, with their full-time employees making up more than 85% of the hospitality workforce in the emirate. The Wynn development is expected to more than double the number of hospitality employees by 2027. By 2030, the inventory of premium and luxury hotel rooms is anticipated to triple.

While salaries in Ras Al Khaimah are 15-30% lower than in Dubai and Abu Dhabi, it is balanced by a 40-50% lower cost of living, hence making the emirate an excellent choice for the families, RAK Holding told listeners during the webinar.

Currently, around 70% of RAK’s hospitality workforce are lower-level employees, with the talent pool made up of expatriate workers: 34% of all hotel staff in the emirate come from India, while 13% come from Pakistan and Sri Lanka and Nepal accounts for 11%

Ras Al Khaimah is expected to go from around 6,000 hotel rooms this year to 16,300 by the end of the decade. As Skift has previously reported, land prices are soaring in the emirate and every plot on Marjan Island – home of the Wynn – has now been sold to developers.

But development is only one