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The 3.5 million tourists that visit Ras Al Khaimah, the emirate where the casino hotel is being constructed, each year may be drawn in large part by Wynn Al Marjan Island.
The facility, the first of its sort in the Arab world, could greatly increase tourism to Ras Al Khaimah, according to Marjan Properties CEO Abdulla Al Abdouli in a recent interview with The Khaleej Times. The city of the same name is the sixth largest in the United Arab Emirates (UAE), and that emirate is only a short flight from Dubai.
"The Ras Al Khaimah Tourism Development Authority aims to attract more than 3.5 million visitors by 2030,” said Al Abdouli in the interview. “To achieve this, we need more hospitality keys and active investor participation in real estate, including hotels and apartment.”
The $5.1 billion Wynn Al Marjan Island by Wynn Resorts (NASDAQ: WYNN) will have 1,542 bedrooms. Wynn is financing its 40% stake in the project on its own. RAK Hospitality Holding LLC and Marjan LLC are the gambling company's local partners.
A Visit to the Wynn UAE Casino Could Be Important
Wynn Al Marjan Island and Ras Al Khaimah are perceived to gain from their closeness to Dubai and the anticipation that the gambling establishment would maintain a multi-year monopoly in the United Arab Emirates.
It's not surprising that as Wynn Al Marjan Island grows, it will likely be a significant source of tourism for its home emirate given the UAE's enormous local wealth and the integrated resort's accessibility (a significant portion of the world's population can reach it in eight hours by plane).
Even though 3.5 million tourists are insignificant compared to the 41 million who visited Las Vegas last year, if the majority of those tourists stay at the Wynn, the number of visitors to Ras Al Khaimah each year may eventually approach that of some of the Strip's individual casino resorts. This suggests that the location might benefit the local economy of the emirate.
“Supporting it requires residential units and apartments as well. Many businesses will be created there. It will be an integral part of Ras Al Khaimah’s economy,” Al Abdouli told The Khaleej Times.
Although it hasn't been verified, Wynn and its partners own a sizable piece of underutilized property next to Wynn Al Marjan Island that may potentially be used for a number of expansion projects, including perhaps a second gaming site.
Positive Prospects for Wynn UAE Casino
Wynn's UAE opportunity set is gaining attention from the financial community. According to a study released last week by Stifel analyst Steven Wieczynski, Wynn Al Marjan Island may eventually contribute for 15% of the operator's earnings before interest, taxes, depreciation, and amortization (EBITDA) when it comes online in 2027.
The UAE property might be worth $18 to $25 per share, he continued, and Wynn's present stock price either ignores or undervalues any contributions from the UAE.
