Friday, Aug 12, 2011

Gulf News

Sharjah Capitalising on the tourist hotspots on its east coast, the Sharjah Government is investing Dh350 million in the Khor Fakkan Hotel and Resort with construction starting in the first quarter of next year, a senior government official told Gulf News.

Sharjah Investment and Development Authority (Shurooq), the project developer, has already signed a memorandum of understanding with an international hotel operator from Asia which is entering the UAE market for the first time, said Shurooq chief executive Marwan Al Sarkal. He however would not disclose the hotel’s name ahead of the official announcement in September due to a non-disclosure agreement.

Break-even period

A study by Shurooq revealed that the project, funded entirely by the Sharjah government through Shurooq, should make a return on investments in 10 years, he said.

The 170-suite hotel and fort nestled in Al Suwaifa mountain with views of the Indian Ocean is inspired by the traditional Arabian ‘mountain village’ and expected to be completed by 2015. “With this development, it’s going to uplift Khor Fakkan dramatically. One of the things it’s known for is scuba diving, snorkelling. People love it because of its natural beauty and it’s next to a city, Khor Fakkan city, you’re not in a remote area,” Al Sarkal said.

The five-star luxury resort is one of several attempts to improve the emirate’s profile, boost tourism and stimulate the economy, Al Sarkal said.

One project is the development of the Khor Fakkan Corniche, which is currently in the design phase and will take one year to construct, he added. No starting date has been set yet but its completion should coincide with the opening of the resort.

Additionally, a new tunnel is currently under construction to connect Sharjah and Khor Fakkan and reduce the commute time to 40 minutes, he noted.

Shurooq is working with the hotel operator to secure an Emiratisation quota for jobs in the hotel, according to Al Sarkal.

Emiratis currently make up one per cent of tourism sector employees — a figure he hopes will rise to 15 per cent starting with the Khor Fakkan resort.

“There’s the challenge of getting them in retail and hospitality. It’s a matter of finding suitable jobs for Emiratis in Khor Fakkan. We’re educating them that you’re not 
opening the door for a guest, cleaning the room or opening a car door,” he said. “We want them to feel proud in the jobs they work in.”

Asked if the market has the capacity to absorb the new facilities in Khor Fakkan and if demand matched the scale of investments,

Al Sarkal said the project’s financial feasibility study revealed that the tourism sector can absorb more hotel rooms and that demand will mainly come from visiting Europeans and GCC families.

Eco-tourism projects

Referring to planned ecotourism projects around Sharjah, Al Sarkal said Shurooq will launch a study next month to select one of three sites of natural beauty to build environment-friendly resorts.

One potential development site already has a community of inhabitants next to it and will likely pose challenges to how to develop the area around it, he said. Reallocating land use, fencing off the community or relocating may arise, he added, refusing to mention the sites’ names in case land prices rise or communities protest the development.

Al Sarkal also noted progress on the Heart of Sharjah, a multi-phase project aimed at restoring Sharjah’s heritage sites to resemble their original look in the 1950s with modern artistic touches. The design of a boutique hotel next to Al Arsa Souk is complete and work will begin by the end of this year, he said. Phase One of the development should be completed by 2014, adding cafes, retail outlets and art galleries.

By Deena Kamel Yousef?Staff Reporter

Gulf News 2011. All rights reserved.