Oman unleashing its tourism potential
The Sultanate of Oman is the centre of the Arabian Peninsula offering exotic landscapes and majestic scenery fringed by the Arabian Sea. Travel and tourism is emerging as one of the main pillars of the Omani economy, and hence of the Omani government’s seventh 5-year plan (2006-2010). With regard to tourism, Oman’s Vision 2020 revolves around five areas of focus - establishing Oman as a regional travel and tourism hub, increasing the contribution of the industry to GDP to not less than 3%, increasing the participation of the private sector and activating its role in the development of various tourism activities, attracting foreign direct investment (FDI) and increasing the ‘Omanisation’ percentage of the industry to 80%.

On a regional front, the Middle East’s investment in travel and tourism is expected to skyrocket over the forecast period, as at least US$1 trillion is to be injected into hotels, resorts, attractions and associated infrastructure between 2007 and 2020. Oman holds a considerable share of this capital injection, as HM Sultan Qaboos bin Said and the Omani government have allocated an appropriate budget to take the sultanate’s tourism objectives forward. The government’s budgetary efforts were further complemented with the amending of a number of laws and regulations to attract FDI into the vibrant travel and tourism industry, where all such efforts are part of Vision 2020.

Tourism enriches
With the motto ‘Tourism Enriches’ in place, Oman is moving forward with its seventh 5-year plan and Vision 2020 with a strong focus on the fledgling travel and tourism industry. The government’s focus on travel and tourism is driven by the objective to diversify its sources of income, taking into consideration the economy’s over-dependence on oil and gas. With full government backing, a recently established Ministry of Tourism, with effective marketing and promotional campaigns overseas, and an attractive FDI environment, the Omani travel and tourism industry is reaching new heights.

Luxury travel
Luxury travel is emerging as a major segment in Omani tourism, and in light of the developments underway, the greatest focus will likely be on the country’s resort accommodation. The sultanate’s resorts cater for almost every luxury need, ranging from small hotels to large facilities. The industry’s upmarket resort segment will most likely continue to be shaped by two distinct types of experience - the boutique resort and the fully-fledged hotel.

Safe from the storm
Cyclone Gonu, which struck Oman on 6 June 2007, was the first to hit the Gulf of Oman in over 30 years. Gonu halted oil and gas exports from the Middle Eastern oil producer for a while as it entered one of the busiest shipping areas in the world, forcing thousands to flee Oman’s coastal areas. The cyclone affected more than 20,000 people and was responsible for more than 50 fatalities. Unfortunately, Oman was forced to give up hosting the annual Gulf Cooperation Council (GCC) summit due to the damage caused to Muscat, and accordingly requested December’s meeting be held in Doha instead, as extensive rebuilding of infrastructure and facilities is still ongoing.

Leading the Middle East pack
The Omani hotel industry led the Middle East hotel industry in 2007 as Muscat saw the strongest growth in the region, with record revenue per available room (RevPAR) driven by three major factors. First and foremost it saw an impressive 44% increase in average room rates during the first six months of the year, with average occupancy rates in excess of 75%. Secondly, Muscat hoteliers in particular continued to benefit from the closure of three key hotels for extensive refurbishment due to scheduled upgrades. And finally, the unusual weather conditions in June caused by Cyclone Gonu resulted in several cases of infrastructure damage and forced many residents into temporary hotel accommodation.