Interview: Hashil Al Mahrouqi
How is Oman Vision 2040 shaping the direction of the tourism sector’s expansion?
HASHIL AL MAHROUQI: Oman Vision 2040 has shaped the development of the tourism sector, contributing to a significant increase in arrivals in 2023 in comparison to the previous year. The results of this vision are evident in the growth of the industry’s contribution to GDP, higher occupancy rates in hotels and increased revenue.
The fact that Oman has surpassed pre-Covid-19 pandemic visitor numbers indicates that it is on track to meet and perhaps exceed its 2040 targets. Following the pandemic, the sultanate’s tourism development plan has been adapted to place a greater emphasis on infrastructure and connectivity to better leverage new opportunities and navigate the challenges of a rapidly changing global travel landscape.
In what ways does the expansion of the tourism sector contribute to Oman’s diversification goals?
AL MAHROUQI: The sector’s expansion is integral to Oman’s diversification. Tourism generates a snowball effect that fosters broader economic growth: visitors come to Oman, fall in love with the country and seek business opportunities. This has led to ancillary benefits in other sectors, such as fisheries and agriculture.
The Oman Investment Authority effectively utilises tourism as one of several pillars – including food security and energy – to promote and diversify the sultanate’s economy under a single cohesive strategy. This comprehensive approach helps mitigate Oman’s historical dependence on oil and ensures a balanced, sustainable economic framework.
Where are the most promising opportunities for private investment in the tourism industry?
AL MAHROUQI: Sustainable tourism is the cornerstone of future projects, in line with the growing global emphasis on environmental responsibility. Oman is blessed with natural beauty, and its natural assets must be handled responsibly to ensure their sustainability. The diversity of Oman’s landscapes opens avenues for agriculture and adventure tourism.
Public-private partnerships are essential, with the government providing up to 40% of initial investment, which eases the way for private investors. This collaborative model has already facilitated several high-profile projects, making Oman a promising and secure destination for tourism investment.
What is your assessment of Oman’s approach to balancing tourism growth with cultural preservation?
AL MAHROUQI: Oman’s approach has been very effective in maintaining growth while preserving its heritage. The national strategy emphasises leveraging its authenticity and heritage as unique selling points, rather than overshadowing them with excessive modernisation efforts. For instance, the focus on attracting quality tourism rather than merely increasing numbers allows us to preserve the integrity of cultural sites, while also generating economic benefits. This approach ensures that development is sustainable and that the distinctive character of Oman remains intact.
Which overseas markets and niche segments offer the most potential for growth and diversification in the sultanate’s tourism sector?
AL MAHROUQI: Given their proximity and economic stature, India and China represent significant emerging markets for Oman. Its historical ties with India and its burgeoning relationship with China are likely to be pivotal as we look to attract tourists from these countries.
Additionally, niche segments such as adventure tourism, agriculture tourism and historical tourism are gaining traction and shaping Oman’s strategic planning. By capitalising on these diverse revenue sources, the sultanate is expanding its reach and enhancing its appeal to a broader array of foreign visitors, further solidifying its place in the international tourism landscape.
