Tourism sector GDP share set to be RO 1.63bn by 2027

NEW MOMENTUM: Oman ranked 9th globally in terms of the rising share of tourism to GDP in 2017 –

Conrad Prabhu –
The direct contribution of Oman’s travel and tourism industry to the Gross Domestic Product (GDP) of the country is projected to grow 8.1 per cent to RO 909.4 million in 2017, up from RO 841.3 million in 2016, according to the World Travel & Tourism Council (WTTC), the leading international forum for the global travel and tourism industry.
The sector’s contribution is expected to burgeon at the rate of 6 per cent annually to RO 1.631.8 billion by 2027, representing an impressive 3.9 per cent of the GDP, up from the 2016 level of 3.2 per cent, the UK-headquartered body revealed in its ‘Travel & Tourism: 2017 Economic Impact’ report on the Sultanate.
The global travel and tourism industry, said David Scowsill, President & CEO, in a foreword, will continue to thrive notwithstanding political upheavals and strife in many parts of the world. “Despite the ever-increasing and unpredictable shocks from terrorist attacks and political instability, to health pandemics and natural disasters, Travel & Tourism continued to show its resilience in 2016, contributing direct GDP growth of 3.1 per cent and supporting 6 million net additional jobs in the sector. In total, Travel & Tourism generated $7.6 trillion (10.2 per cent of global GDP) and 292 million jobs in 2016, equivalent to 1 in 10 jobs in the global economy. The sector accounted for 6.6 per cent of total global exports and almost 30 per cent of total global service exports,” he stated.
Contributing to tourism-related revenues in the Sultanate are hotels, travel agencies, airlines, passenger transportation services, restaurants and leisure industries directly supported by tourists, says the WTTC report.
However, if clubbed along with revenues generated from the wider effects of investments, as well as supply chain and induced income impacts, then the sector’s contribution is expected to grow 8.3 per cent to RO 2.089 billion (equivalent to 7 per cent of GDP) in 2017. Going forward, this figure is projected to rise 5.9 per cent to reach a value of RO 3.716 billion by 2027 (corresponding to 9 per cent of GDP).
Importantly, the Travel & Tourism sector generated 17,000 jobs directly in 2016 (13.3 per cent of total employment). Although this figure is forecast to fall by 3.5 per cent in 2017 to 16,500, employment in this industry is anticipated to grow at an annual rate of 2.4 per cent to 21,000 direct jobs over the next 10 years.
However, the sector’s contribution to employment, including wider effects from investment, the supply chain and induced income impacts, is projected to rise to around 60,000 by 2027. TURN TO PAGE 15