Thursday 30 / January / 2025
Muscat: Plans to invest OMR3bn in Oman’s tourism sector over the next three years have been drawn up, according to the Minister of Heritage and Tourism.
With the COVID-19 pandemic having strongly impacted tourism around the world, it is hoped that this investment will once again enable it to contribute to economic growth, create more jobs, and provide more leisure and tourism opportunities for people who wish to explore Oman.
“The ministry aims to bring in total investments worth OMR3 billion during the next three years as part of the programme of attracting investments and encouraging exports,” said Salim Mohammed Al Mahrouqi, the Minister of Heritage and Tourism, during the second annual session of the Majlis Al Shura.
“This stems from the priorities of Oman’s Vision 2040,” he added. “These efforts also include the approved timetables for investment, creating a number of investment initiatives, and introducing the right procedures for investment, appropriate governance, and developing legislation related to governing this sector, as well as a number of other enablers.”
The minister added that before the pandemic, Oman’s tourism sector had witnessed steady growth over the past few years. The total value of the sector, at the end of 2019, was OMR1.3 billion, growing from OMR700 million the previous year.
Tourism had a direct contribution worth OMR718 million in 2019, contributing about 2.5 percent to the country’s GDP, thanks to the arrival of nearly 3.5 million visitors. “However, the performance of the tourism sector has been affected by the exceptional circumstances of the COVID-19 pandemic,” said the minister.
“Visitor numbers dropped by 75 per cent to reach just 875,000, and this led to a 52 per cent decrease in hotel guests. This inevitably told on hotel revenues, which fell by 63 per cent, compared to 2019.”
The investment plan comes as part of efforts between the Ministry of Heritage and Tourism, and other authorities, to reverse the impact of the pandemic on the tourism sector.
Under the directives of His Majesty Sultan Haitham Bin Tarik, plans for investment will target the vital aspects of the tourism sector, enable its various elements to recover, develop tourism destinations, enable the growth of tourism supply chains, offer investment support, and assess priorities related to the growth of tourism and heritage in the country.
Many incentives and processes have been adopted to minimise the impact of the coronavirus, as well as the completion of an ambitious promotion plan. This includes the Oman Tourism Strategy and its implementation programme, both of which are key elements under the targets of Vision 2040.
“The ministry has completed a comprehensive evaluation of tourism establishments,” said Salim Al Mahrouqi. “This includes listing activities considered violations of the laws, as well as mentioning the procedures that are in effect to stop them from taking place.
“In terms of the targets concerning tourism development, work will be done to help make the comprehensive development plan easier to enable,” he said.
“This will be done in coordination with all parties. We are looking to target investment from the private sector and foreign investors, who will have as a partner Omran, Oman’s tourism development company.
“They will help develop a diversified number of projects over the coming years,” he added.
“It is hoped they will provide quality additions and a promising shift forward for the tourism sector in the country. The Ministry of Heritage and Tourism is also making strenuous efforts to develop the labour market for tourism. We are also working to identify underlying challenges, and organising the process of construction on usufruct plots of land.
“This also includes the development of tourist destinations in keeping with the finances allocated to them, and making sure they meet professional terms and standards,” the minister said.
“We are also investigating the requirements of the labour market needed for us to progress with diversification and promotion of tourism, provide competitive tourism services, and establish new facilities and add to existing ones, in coordination with the various governorates and municipalities.”
14 tourist sites have been identified across the country, with each of them containing a number of facilities, including and tourist attractions. Connected to the rest of the country by good infrastructure networks, these sites will also have proper accommodation services, transportation, and other facilities considered important for tourism.
The first phase of preparations for tourism centres in five governorates have already been drawn up: sites in Muscat, Dhofar, Musandam, Al Dakhiliyah and South Ash Sharqiyah will see the creation and development of a wide range of tourism products that will also benefit the local population, and attract international markets.
These areas will be developed on the basis of the comparative advantages they have over one another, and identifying investment opportunities by analysing the resources, current conditions and development potential, looking at the best sites for tourism development, and taking into account the principles of sustainable development so that environmental conservation, as well as social and cultural sensitivities are respected.
