Oman Economic Review – July 2019

COVER STORY

22 July 2019

The state-of-the-art centre has already
hosted close 300 events since it opened
two years ago and has significantly
contributed to the Sultanate’s business
sector’s growth. OCEC has already
secured some large conferences,
including SICOT 2019, World Hospital
Congress 2019, and World Cancer
Congress 2020 among many others. This
will bring in more than 40,000 visitors
until 2024.

The Oman Convention Bureau under
the Ministry of Tourism is working hard
to promote world-class offering and
expects to see significant growth when
it comes to attracting corporate visitors.
There are a host of new hotels and
resorts in the pipeline that will further
strengthen Oman’s hospitality portfolio,
making it a top choice among planners.

Additionally, it is now easy to visit
Oman thanks to an online visa system
and the major expansion works that
were recently completed at Muscat
International Airport. Oman Air is also
growing rapidly and is expected to
operate up to 70 aircraft and fly to 60
destinations by 2022.

And it is not just the capital that is
drawing in visitors. Salalah now has
an excellent selection of hotels and a
modern airport that is receiving an
increasing number of flights. With so
much to offer, it is not surprise that
tourist numbers are continuing to rise.
With plans to further diversify the
tourism sector and significantly expand
its offerings, Oman is set to thrive in the
years ahead.

However, these are far from the only

ventures the Sultanate is undertaking

as it is looking to attract 11 million

international visitors annually by 2040.

There are more than 50 hotels set to be

constructed in the coming years, a new

urban development is set to transform

the face of Muscat and a new e-visa

system has been introduced in order to

make it even easier for tourists to visit

the country.

With Oman set to welcome a growing

number of visitors, the hospitality

sector in the Sultanate is set to grow

substantially. In terms of properties,

550 hotels are expected to begin

construction or are currently being

constructed within 2019 and 2020. They

will add another 4,763 hotel rooms

to the sector, with the opening of JW

Marriot at Madinat Al Irfan at the OCEC.

Furthermore, Jumeirah Muscat Bay is

another major hotel set to open this

year, with its launch expected in the

fourth quarter of 2019. The five-star

property has been designed as a retreat

on the waterfront, with the aim of

offering guests luxury amidst nature.

(see interview). There is also the150-

room Mandarin Oriental Muscat and

155 residences at Mandarin Oriental,

expected to open on 2021.

Muscat’s new downtown

One of the most important projects

currently under development in Oman

is the construction of Madinat al Irfan.

Set to be built over 20 years at a cost of

$12.9bn, the project will span across 4.5

million square metres of land adjacent

to OCEC and is set to become a new

downtown area for Muscat.

A joint venture between Oman Tourism

Development company (Omran) and

Dubai-based real estate developer Majid

Al Futtaim, this mixed-use development

will feature 11, 000 residential units,

100,000 square metres of retail space,

700,000 square metrers of office space

and several cultural and lifestyle

offerings.

The project is of extreme importance in

the light of Oman’s national economic

diversification agenda and reflects

Omran’s strategic roles as a catalyst

for investment that form robust

partnership with developers. Such

ventures will lead to the development of

sustainable urban destinations and the

generation of significant socio-economic

benefits for the Sultanate. It is also

expected to create more than 30,000

direct and indirect jobs in the country.

Madinalt Al Irfan is also expected to

attract even more conferences and

exhibitions in the coming years.

Aviation

Oman’s aviation sector is playing

equally important role in attracting

record numbers to the country.

The Sultanate’s national airline,

Oman Air, has invested heavily in

its fleet and is carefully identifying

new flight paths, while $1.8bn was

spent constructing a new terminal at

Muscat International Airport.

This expansion helped the airport

post record numbers in 2018 and

LEISURE SPENDING

BUSINESS SPENDING

68% 43%

DOMESTIC SPENDING

INTERNATIONAL SPENDING

32% 57%

SECTOR CHARACTERISTICS (2018)

All values are in constant 2018 prices & exchange rates

All forecasts WTTC and Oxford Economics