Stirling Hospitality Advisors anticipates the number of employees in RAK Hospitality Sector
Stirling Hospitality Advisors, one of the leading boutique advisory institutions in the region, proudly announces the release of the second edition of the Ras Al Khaimah (RAK) Investment Pulse report. The latest report analyses the critical role of employee attraction and retention in enhancing service quality and solidifying the emirate’s reputation as a desirable destination to live and work.
Tatiana Veller, Managing Director of Stirling Hospitality Advisors, emphasises the significance of this research, saying: “We are pleased to release the latest edition of RAK Investment Pulse highlighting the crucial role of staff in the northern emirate’s growing hospitality landscape. Amidst fierce competition in hotel development, attracting and retaining quality employees is imperative. Competitive salaries, comprehensive benefits, quality of life initiatives, staff housing, and career advancement opportunities are pivotal factors. We strive to deepen the understanding and appreciation of the workforce, empowering businesses to thrive in this dynamic market.”
Ras Al Khaimah (RAK) is projecting GDP to grow by 80% by 2030. Meanwhile, RAK population is expected to grow by 55% from over 400,000 to approximately 620,000, mainly driven by expatriate influx. Latest research indicates that the RAK hospitality workforce is predominantly non-management (88%), mainly aged 25 to 35, from countries including India, Pakistan, Sri Lanka, Nepal, and the Philippines. Many highly skilled workers have moved to the Emirate due to the high job satisfaction, no personal income tax, a broad range of affordable housing options, and overall quality of life. RAK’s growth potential attracts 75% of workers, while 25% are motivated by career and financial opportunities.
Businesses and investors in the emirate can take advantage of low operating costs, low corporate tax rates, and lower staffing costs than the national average. Salaries in RAK cost 5% to 15% lower for middle and upper management and up to 30% lower for lower-level staff compared to Dubai, which is well balanced by a 40-50% lower cost of living for employees. For example, Dubai lease rates are consistently two times higher throughout all residential classes compared to RAK, while average school fees in RAK are nearly 50% lower.
Currently, 4- and 5-star hotels comprise 77% of the total hotel inventory, with their full-time staff making up over 85% of the hospitality workforce in RAK. The Wynn development, which is expected to employ around 7,000 people, is set to more than double the hospitality workforce by 2027. By 2030, the number of premium and luxury hotel rooms in RAK is projected to triple, increasing the workforce to approximately 25,200 employees in the sector.
Jari Ylipaavalniemi, General Manager of RAK Hospitality Logistics, commented: “The bright future of the RAK hospitality scene requires support for the staff’s lifestyles by the provision of modern, comfortable, and enticing homes and lifestyle offerings. Only if we give them the opportunity to recharge fully after work, will we be able to attract and retain the top talent in the emirate, who will make our guests happy.”
Based on the findings, Stirling Hospitality Advisors proposes several strategies to boost staff retention in RAK. This includes adjusting financial packages to meet rising living costs, and aligning benefits with those offered in larger emirates to attract and retain top talent. Additionally, it also suggests improving the quality of accommodation standards for employees by providing better amenities and recreational facilities. The advisory firm also emphasises the importance of highlighting RAK’s potential for career advancement to attract ambitious professionals.
As a subsidiary of Ras Al Khaimah (RAK) Hospitality Holding, Stirling Hospitality Advisors asset manages over 3,500 hotel rooms in three countries and is responsible for a hotel and resort portfolio valued at over USD 1.25 billion.
Fact Box:
Register for the RAK Investment Pulse Webinar to learn more about elevated workforce insights in RAK by clicking on the link here:
Date: Monday, 5 August 2024
Time: 10:30 am – 11:30 am
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Last Updated on 4 months by News Desk 2
