Billion-dollar investment plan to buoy tourist inflows

By Business Reporter — MUSCAT: FEB 19 – Oman’s tourism and hospitality industry is building momentum, with total investment in the sector set to hit $1.17 billion by 2026, according to the World Travel and Tourism Council (WTTC). The Sultanate returns to Arabian Travel Market (ATM) at Dubai World Trade Centre this year (April 24-27) to showcase its expanding hotel and tourism infrastructure pipeline following a successful 2016 with visitor numbers in the first ten months of the year growing to reach 2.5 million, representing a year-on-year increase of 15 per cent.
Simon Press, Senior Exhibition Director, ATM, said: “It is no wonder that Oman is so popular and was recently named as one of the top ten places to visit in 2017 by a selection of the world’s top media. The country boasts a fantastic mix of culture, history and adventure for travellers, while (amusement schemes), will add to the huge selection of options available for families.”
The Reed Travel Exhibitions team were in Muscat to meet with key industry players from across Oman and discuss exhibitor opportunities for ATM 2017, with the total contribution of travel and tourism in the country set to rise to $785 million by 2026, according to the WTTC.
A report from Colliers International said: “Although the country faces significant competition other popular regional destinations, Oman has been able to distinguish itself as a unique tourism destination, being home to many eco, cultural and heritage attractions.”
To cope with the projected increased demand, hotel supply in Oman increased by 2,022 keys in 2016, and although occupancy rates were down 11 per cent over that period, largely due to lower oil prices, which subdued business travel, as well as the effect that weaker currencies had on the UK and EU leisure markets, this is expected to recover by 3 per cent through 2017.
The Colliers report said: “With the recent opening of the Oman Convention & Exhibition Centre, which is expected to host around 28 exhibition events in 2017, the market is expected to see a slight recovery, with the hotel occupancy forecasted to close at 58 per cent.”
According to the latest data from STR, Oman currently has 15,843 hotels, with another 6,347 rooms in the pipeline, representing growth of 40.1 per cent.
A further area of growth for Oman is through passengers arriving at the country’s airports, with a 17 per cent increase in total airport arrivals through to the end of December 2016, while the new terminal at Muscat International Airport, which is expected to open this year, will have a capacity of 12 million passengers per annum.
Salalah International Airport (SAIA) has a current capacity of one million travelers annually with the ability to increase this further by up to six million. And six other airports are either in planning or construction phase, including the new airport at Ras Al Hadd.