MUSCAT: A number of laws, regulations and legislations governing the tourism sector are currently under review, most importantly the Tourism Law which is expected to be passed at the beginning of next year. Besides, usufruct agreements are being revised to encourage investors to commit to executing the projects.
This was stated by Salim bin Mohammed al Mahrouqi, Minister of Heritage and Tourism in an interview with Oman Arabic, sister newspaper of the Observer.
The minister said that there are more than 80 tourism projects under implementation all across the Sultanate of Oman. Those projects, including Oman Plant and Trees Garden whose implementation rate reached 65 per cent, would boost local tourism.
The minister affirmed that the tourism sector is recovering quickly from the impact of Covid-19 pandemic, hoping that the promotional plan undertaken by the ministry would achieve the desired goals by pulling international tourists. However, he warned that the energy crisis and high inflation in Europe would limit tourist inflow during the winter tourism season.
The tourism sector is expected to contribute an estimated 3 per cent of gross domestic product (GDP), the minister said, adding that the funding is the biggest challenge facing the tourism sector. To address this challenge, the ministry is weighing several options including establishing a tourism development fund.
Festivals and cultural and sports events organized in the governorates will boost domestic tourism and generate revenues for various society segments. The tourism sector is capable of providing job opportunities for nationals. Efforts are underway to provide more jobs in the tourism sector through linking each tourism project to the job opportunities generated by that project, the minister said.
There is a joint work team between the Ministry of Heritage and Tourism and the Ministry of Labour to remove the obstacles hampering the employment of job-seekers in the tourism sector. The ministry has recently announced the availability of 200 jobs for nationals in hotel installations. We have been working for some time to link the tourism sector to the labour market through a package of initiatives, which include identifying job opportunities provided by each tourism project or usufruct agreement, the minister said.
The minister affirmed that the Ministry is targeting investments worth RO 3 billion between 2021 and 2023. The value of the tourism projects that are currently under implementation amounts to RO 1.7 billion.
Regarding incentives and facilitations provided to investors in the tourism sector, the minister said that the ministry is currently identifying tax waivers and other facilitations to encourage investments outside Muscat Governorate to achieve balanced tourism development and to benefit from the competitive advantages of each governorate, the minister said.
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