Omran eyes more tourism revenues for economy

Oman Saturday 08/April/2023 20:30 PM
By: Times News Service
Omran eyes more tourism revenues for economy

MUSCAT: Oman Tourism Development Company (Omran Group), the Sultanate of Oman’s executive arm responsible for delivering the objectives set in the 2040 National Tourism Strategy, is working on ways to strengthen collaborations with various stakeholders to explore tourism development opportunities in the country, according to its chairman, Eng Mohammed Salim Al Busaidi.

Speaking to Al Shabiba Radio during a talk show, Al Busaidi said: “We have ambitious plans to develop the tourism sector and are involved with many projects across the Sultanate in partnership with the Ministry of Heritage and Tourism and various stakeholders.”

“This is part of Omran’s ongoing efforts to improve the tourism sector’s competitiveness and create unique offerings.”

He added: “Omran Group is continuously working to strengthen collaborations with stakeholders to achieve its comprehensive tourism development goals. We are dedicated to developing the tourism sector in various governorates of the Sultanate by creating high-end tourism projects.

By developing the tourism sector and collaborating with local entities, Omran aims to maximise the sector’s contribution to the government’s economic diversification plans.”

Among the key initiatives are Omran plans to organise tourism activities at various locations in collaboration with their respective governor’s offices. 

These projects will be carried out to international standards to attract diverse groups and boost local tourism. Such initiatives align with the Omran’s goals of promoting local tourism, maximising local value, and achieving social and economic benefits.

Speaking about the major projects, Al Busaidi said: “At present we are involved with five tourism development projects in Dhofar Governorate, funded by the Dhofar Municipality and the Ministry of Heritage and Tourism. These include development of Jarzeez, Iteen Plain, Wadi Darbat, Al Mughsayl and Hamrir Plain areas.

“Omran is also working on a number of projects in Musandam Governorate, Al Dhahirah Governorate (three), Al Buraimi Governorate (two), and a few projects in Al Sharqiyah South Governorate.”

Al Busaidi said: “Omran’s mandate is to create sustainable and authentic tourism assets, lifestyle communities and destinations that drive economic growth and contribute to the diversification of the economy. We achieve our mandate by acting alone, or as a catalyst, bringing together the strength of government and the entrepreneurship of the private sector.

“We work with all stakeholders, partners, SMEs and local communities to ensure a positive physical, social and economic contribution to both the environment and people’s lives while respecting the traditional culture and environmental values of Oman.”

Al Busaidi admitted that Omran is committed to cut the operational losses, which it suffered during the COVID-19 pandemic. “It will take time for us to get back our return on investment as we plan our operations in a better way ahead. The pandemic really hit us hard,” he said. Giving an example of the Oman Convention and Exhibition Centre (OCEC) project, Al Busaidi said “the project will still take many more years to gain profit as the operational value is high.”

“The investments made in OCEC were very high and we need to attract a huge number of international events in future to make it a viable and a profit-making project,” he said.

The Omran chairman also said that the Al Hoota Cave project needs larger investment due to its high operational cost.

Al Busaidi agreed that the Sultanate of Oman failed to capitalise on global opportunities that took place in neighbouring countries.

He said: “We couldn’t maximise the benefits, be it the Expo 2020 in the UAE or the FIFA World Cup 2022 in Qatar, despite the efforts made by the Ministry of Heritage and Tourism and the other stakeholders. Possibly, the reasons were delay in execution of plans due to the lack of sufficient resources.”

Al Busaidi also spoke about the first entertainment project in the Sultanate – Hay Al Sharq district project that is expected to be ready by 2024.

Developed by ASAAS, Hay al Sharq will be spread over a multi-cluster 1.5 million square metres entertainment and leisure theme park, which will boast an integrated theme park, wildlife and water parks, an equestrian centre and an edutainment centre, as well as retail areas that will offer a range of retail, leisure and dining options. It will also feature hotels, with a residential zone and retail areas.

Besides the Yiti Intergrated Tourism Development project, the other major master development projects include Madinat Al Irfan, InterContinental Hotel development, and Mina Sultan Qaboos Waterfront.

Adventure activities

The start of water sports and adventure activities at Wadi Dayqah dam in Qurayyat was also mentioned by Al Busaidi. It may be mentioned that in October 2022, a range of facilities, including kayak and paddleboard rentals, donut boat hire, pedal boats and a mountain bike trail were offered at the popular tourist site.

Al Busaidi said: “The water sports activities launched at Wadi Dayqah are part of a broader development plan we are implementing along with a private operator at the dam in collaboration with the Ministry of Heritage in Tourism and the Ministry of Agriculture, Fisheries and Water Resources. With this development plan, Omran is leveraging Wadi Dayqah’s popularity and unlocking its potential as a water sports and adventure tourism destination. By doing this, we’ll be able to diversify our range of tourism products.”

Al Busaidi expressed happiness on the recent signing between Omran and Dar Al Arkan, the leading real estate company in Saudi Arabia and the GCC, to develop ‘AIDA’ a premium, mixed-use project nestled within the masterplan of Yiti Integrated Tourism Development.

The project marks Dar Al Arkan’s first entry into Oman to drive the development of the property market and support the growth of Oman’s tourism and real-estate sectors in accordance with Oman Vision 2040. The value of the investment in the project from both parties will reach US$1.5 billion, and it will be developed in three phases on an area of 3.5 million square metres.

“Yiti Integrated Tourism Development” is one of the largest urban developments in Oman, extending to a total area of over 11 million square kilometres. The project is surrounded by unique aspects of the Sultanate’s natural wonders, including its sandy shores, majestic mountains, curvaceous hills and valleys, and unique topography that naturally envelops the breath-taking setting to make the most of Oman’s beauty.

Earlier this year, Oman Investment Authority (OIA) announced the restructuring of its tourism and real-estate investments in the Sultanate by transferring them to Omran, a subsidiary of OIA.

The restructuring saw the transfer of the integrated “Yeti Sustainable Tourism City” project, a 1.5 million square metres waterfront tourism complex, the 5-star ‘Alila Hinu’ Bay Hotel in the Wilayat of Mirbat, Dhofar, with its 112 room, integrated leisure facilities and free-hold villas.

Additionally, Naseem Hotel at Al Jabal Al Akhdar with its chalets and Adventure Park has also been transferred to Omran’s hospitality arm. The restructuring is aimed to channelise tourist and real-estate investments under one efficient management in alignment with Oman Vision 2040 and the Tenth Five-Year Plan. Tourism has been identified in the plan as a key sector to achieve economic diversification in the Sultanate, promote growth, increase the GDP’s non-oil revenues, and attract direct foreign investments. The operational framework of Omran is based on four key pillars: tourism, development, hospitality and development partnerships. Omran owns, manages and invests in many tourist assets across the Sultanate amounting to 27 hotels and resorts with over 4,000 hotel rooms. (With inputs from ONA and www.omran.om)