Oman Economic Review – July 2019

26 July 2019

COVER STORY

more attention to careers in tourism
and hospitality sectors.

Another challenge is to get the projects
built to the high standard and on time.
We have only a limited number of
international contractors here in Oman
who can provide the services we require.
This is affecting the timely completion
of the projects. In addition, the political
tensions currently brewing in the region
are affecting the tourism industry in the
Middle East region. However, tourism is
a long-term play and there will be ups
and downs in the short term.

The other challenge is of competitive
environment. People who do choose to
come to the Middle East have a lot of
other options in the region.

During the last five years, we have
significantly increased our supply of
hotel rooms in Oman, faster than the
amount of tourists arriving. That’s
why we have more tourists coming
and less occupancy rates. But this is
a short term issue – sort of a chicken-
and-egg problem. If you don’t have
hotels of international standard, then
you won’t get people. Therefore, you
have to develop the hotels and build
the reputations and attractions of

the country to get more tourists flow

in. So, for the next few years, we

are expanding the number of five-

star hotels allowing time to the tour

operators to build up the momentum.

What is Omran doing to promote

domestic tourism?

There has been a criticism that

Omran is focussing on foreign tourists

with high-priced hotels. We need to

recognise that Omanis themselves

are potential tourists inside their

own country, and we need to make

them spend their money inside Oman

instead of letting them travel and

spend abroad. And that is going to

happen only when we, as a country,

provide more destinations, activities

and attractions for domestic tourists

who won’t pay international prices.

In this regard, Omran has announced

a summer promotion package by

offering Omanis discounted rates

across our hotels in the Sultanate

during the summer months. This is

aimed at encouraging them to leave

home and live in a different place in

Oman, rather than spending all the

time outside the country. In addition,

in our newly developed Athana hotels

at Al Ashkhara in Salaha, the room

rates are going to be more attractive for

the locals.

It’s important that we don’t lose sight of

the fact that Omanis are the domestic

tourists and we should encourage them

to stay in the country and visit other

places in the Sultanate. Omran is also

supporting the idea of opening local

establishments and houses for Omanis

to have more lower-cost vacations in the

Sultanate.

What is Omran’s future outlook?

Out future outlook is, and has to be,

positive. We continue to invest in key

projects of national importance and we

have a very large ITC project kicking

off. We would not have done it all, if

we did not think that there is a positive

future for the country and for these

investments. What has driven Oman’s

diversification strategy focussed on

tourism is the well-known fact that

tourism is one of the fastest growing

sectors not just for Oman but all over

the world. So we are positive and

optimistic that Oman is well positioned

in this region to attract more tourists

and to see that those tourists invest in

the country. So we are very positive and

ambitious of about what we want to do

to increase our offerings.