Driving ICV in Oman’s tourism and heritage sector

Recognized as the Sultanate of Oman, the nation is known for its tourism potential due to the diversity of its natural landscapes and flora, as well as rich culture. Oman is now making concerted efforts to position tourism as an important economic sector. In Oman Vision 2040, the country is focusing on increasing In-Country Value (ICV) in a number of sectors, including tourism and heritage. With regard to tourism, the initiatives seek to develop local industries, create jobs for Omanis, maximize economic value retention within the country, and ensure sustainable growth of the sector.

This work studies the role of ICV in the tourism and heritage sector of Oman, its contribution towards local socio-economic development, major policy and strategy initiatives taken by the government, challenges, and further enhancement recommendations.

The tourism and heritage sector in Oman can greatly affect the economy of the country. The implementation of ICV strategies in the sector will ensure that there are positive impacts on local communities and businesses economically. The following points show the importance of ICV in the tourism and heritage sector.

ICV Policies and Employment Opportunities: ICV policies encourage economic growth through local employment. The tourism sector in Oman is one of the most active economic sectors and is extremely diversified in terms of employment. In addition, there are many opportunities for Oman nationals to work in hospitality, tour operations, cultural heritage management, adventure tourism, etc. As the policies are put into effect, there are motives for sector businesses to hire more Omanis. There are also many motives to train Omanis which decreases the use of foreign labor. Hence the employment of Omanis increases.

Empowerment of Local SMEs and Entrepreneurs: Local business entrepreneurs are a decisive feature in enhancing Oman’s tourism. Proposing hotels, travel agencies, handicraft businesses, and restaurants open avenues towards increasing ICV and promoting the diversification of the economy. In relation to this, funding programs and various other incentives aimed at supporting Omani SMEs in the tourism sector have been put forth by the government.

Preservation and Promotion of Cultural Heritage: The various tourist attractions in Oman such as ancient forts, historical castles, trade markets (souqs), and archaeological areas provide a rich experience for Oman. With the aid of the ICV initiatives, heritage tourism increasingly provides the necessary revenue to maintain and restore historical places while also providing locals artisans and craftsmen works to develop their skills.

Infrastructure Development: Investment in tourism-related infrastructure, such as hotels, eco-lodges, and transportation networks, supports ICV by sourcing construction materials locally and employing Omani professionals in the planning and execution phases. This enhances Oman’s overall tourism experience while fostering economic growth.

Sustainability and Environmental Protection: Other sustainable practices included under ICV associated with tourism activity are eco-tourism, waste disposal, and conservation activism. Promoting the use of eco-friendly products and services within the territory helps minimize harm done to the environment while assists local production industries.

ADDRESSING ICV IN TOURISM AND HERITAGE

The Omani government has adopted a number of policies and strategies to enhance ICV in the tourism industry. These include:

Oman Vision 2040 – A strategy for the country seeks to diversify the economy, increase employment opportunities, and develop tourism.

National Tourism Strategy – Strives to improve the local participation and local content in tourism businesses.

Public-Private Partnerships (PPPs) – Promoting private investments in tourism with adherence to ICV guidelines.

Financial Assistance for SMEs – Offering financial assistance, grants, and mentorship programs for small and newly established Omani businesses.

Heritage Site Development Programmes – Investing in the restoration and management of historical landmarks.

OBSTACLES IN APPLICATION OF ICV

Regardless of the tourism industry's obvious benefits of ICV, there are numerous challenges associated with applying it:

Skill Deficiency of Employees: The local personnel does not possess the requisite skills for the roles available in the tourism sector.

Sector Specific High Start Up Capital is more expensive compared to other sectors for local companies.

Market Dominance by Foreign Hotels and Tour Operators: The hospitality market is overtaken by international service providers, thus there is little room for development for local firms.

Growth versus Sustainable Environmental Development: The uncontrolled development of tourism infrastructure can damage the environment and dilute culture.

The following recommendations can be applied to enhance the ICV in tourism and heritage for Oman.

Industry Tailored Training Programmes – Opening training centers for the tourism industry to nurture skillful locals.

Support for Omani Local Enterprises – Supporting Omani investors with more financial resources.

Promotion of Community Participated Tourism – Promotion for local cultural performances, guided tours, and tourism accommodation.

Application of Defined ICV Governance Policies – Implementation of new policies to force foreign investors to spend on the economy.

Encouraging Digital Change – Marketing on the internet and enabling online reservations should be encouraged amongst local industries.

Incorporating In-Country Value (ICV) strategies into Oman’s tourism and heritage sector could be instrumental for achieving sustainable development, employment opportunities, and economic diversification. Focusing on local human capital, nurturing small and medium-sized enterprises, and developing the necessary infrastructure will enable Oman to fully capitalize on its tourism potential. Oman’s Vision 2040 will call for strong commitment towards Oman ICV policies. This will ensure the tourism and heritage industry will be a key contributor to the economic growth of the country.