Turning Oman’s tourism assets into national economic value

With its vision towards 2040, Oman has identified sustainable growth through tourism as a largely untapped sector. The impact of the sector cannot be quantified by only counting the number of visitors, constructed hotel rooms, or tourism projects. One should ask the question, how much of every Rial Omani spent by a tourist stays in the Omani economy?
That is where Local Content comes in.
In the context of tourism, Local Content would include maximising economic value retained in Oman through Omani employment, locally produced goods and services, Small and Medium Enterprises (SMEs), local suppliers, cultural products, transportation, food, agriculture and community-based tourism.
Let us take an international tourist who arrived in Oman. The tourist could check in to a hotel, dine at various restaurants, hire a local tour guide, pick a transportation method of their choice, purchase local products, visit historical sites and tour Nizwa, Al Jabal Al Akhdhar, Sur, Musandam and Salalah. There are many economic activity touch points along this entire travel route.
The endeavour should ultimately be to create a tourism value chain in which a larger part of the tourism spending benefits the Omani businesses and the Omani community.
An example of how hotels and resorts can strengthen their business would be if they bought more food, furniture, uniforms and maintenance and transport services from Omani suppliers. Tourism operators have the opportunity to work together with Omani guides and photographers as well as entrepreneurs and small businesses. Restaurants have the opportunity to procure more locally sourced agricultural and fisheries products. Likewise, tourism destinations can offer more opportunities to artisans and producers of traditional Omani handicrafts.
This would have a positive multiplier effect. Tourism spending does not end at the hotel or the tourism operator, it supports farmers and fishermen; and the whole supply chain including SMEs and craftspeople.
Local Content can also support tourism opportunities in the various governorates of Oman. Oman has many tourism assets such as beaches, heritage villages, wadis; and coastal, desert and mountain tourism. Tourism development can create economic opportunities in the many areas outside the major cities of Oman.
Community-based tourism is essential. Local families and entrepreneurs can open guesthouses and provide tourism experiences, traditional food services and adventure and cultural tour activities.
An important aspect is Omani employment and skill development. Tourism provides an opportunity to young Omanis in the hospitality and destination management fields and in digital marketing and tour operations. However, it is important to provide opportunities beyond employment to build a career and develop Omanis in supervisory, management and entrepreneurial roles.
Oman has the option to reinforce its current strategy by framing measurable Tourism Local Content indicators. Large hotels and tourism development and operational sectors can report on inventory sourced from Omani firms, spending on small and medium enterprises, employment of Omani citizens, sourcing food locally, developing the workforce and retaining expenditure within the local community.
Policymakers would then have the means to ascertain not only the growth of the tourism sector, but the national economic value that this growth creates.
Oman's next phase of its tourism growth must combine investment, the growth of visitors and the development of destinations alongside a clear Local Content strategy. From the outset, large tourism development projects must detail Local Content strategies to include objectives pertaining to local procurement, small and medium enterprises, employment, skills development and benefits to the local community.
Oman is rich in its natural beauty, cultural heritage and a strong tradition of hospitality. What is important now is that this nation turns its tourism potential into real sustainable economic value.
Instead of only wondering, “How many tourists visited Oman?” we ought to ask,
“How much economic value did the tourism of Oman create for its businesses and its people and communities?”.