Oman has a strong reputation within the larger gulf region as being a high-end tourist destination offering attractive options for foreign visitors, mixed with stunning natural geography, cultural attractions and a growing number of sporting activities.
Although efforts are now under way to diversify the sector, luxury tourism continues to play a dominant role in the landscape. “ Around 80% of the tourists who come to Oman are businessmen or luxury travellers looking for beaches and resorts, while also seeking cultural and adventurous activities,” Firas Matraji, CEO of Barr Al Jissah resort development, told OBG. Prices for accommodation are therefore correspondingly high. According to the Hotel Price Index compiled by Hotels.com, when it comes to average hotel rates, Muscat was the fifth-most expensive destination in the world during the first half of 2015, with an average nightly rate of $262, versus $229 in Doha and $174 in Abu Dhabi.
SWEET STAY: The importance of more affluent visitors is visible in the overall number of four- and five-star hotels, with 26% of hotels in Muscat being in the internationally branded five-star category, according to a February 2017 report by commercial real estate company Colliers International, and another 17% being international four-star establishments.
In May 2015 the Ministry of Tourism announced multiple projects that would ultimately add to the number of high-end hotel rooms in the country, with the top 10 projects involving a total investment of more than $3.3bn and including top-tier internationally branded hotels, such as Westin Hotels & Resorts, Kempinski, St. Regis Hotels & Resorts, W Hotels, The Ritz-Carlton, Louis Vuitton Moët Hennessy Hotel Management and Fairmont Hotels. In fact, the majority of major signature developments or real estate projects under way contain strong elements linked to the luxury market. There are currently 11 tourism-related mega-projects either ongoing or that had received approvals for construction, and many of these include features targeting more affluent visitors. The larger complex being built around the new Oman Convention and Exhibition Centre, which opened in 2016 to stimulate the meetings, incentives, conventions and events market, is set to feature a five-star JW Marriott hotel, scheduled to open in 2018, as well as two four-star hotels. Meanwhile, the ongoing OR500m ($1.3bn) project to redevelop Muscat’s traditional port and harbour area will feature a boat marina and five-star hotel, among other facilities. Also being pushed forward are plans to encourage Oman’s reputation as a provider of conscientious luxury, with efforts to further promote responsible tourism through the development of green, eco-friendly lodges and heritage homes in some of the more pristine, natural areas of the country.
TRENDS: Oman’s current emphasis on quality, as well as authentic experiences, is in line with the perceived trends in upscale markets. Euromonitor International’s “Global Luxury Travel Trends Report” for 2017 suggested that “conspicuous consumption is giving way to conscientious consumption and more meaningful and authentic luxury travel experiences”.
In April 2017 Condé Nast International held its third annual International Luxury Conference at the Al Bandar & Al Husn Hotels at the Shangri-La Barr Al Jissah Resort & Spa Muscat, further highlighting the global reputation of the sultanate when it comes to upmarket travel. The two-day conference followed previous events in Florence, Italy in 2015 and Seoul, South Korea in 2016, and focused on a theme of “Mindful Luxury: Navigating the New Silk Routes”.
Commenting on the recent attention Oman has received from luxury events planners, Paul Jessup, vice-president of sales and marketing at Muscat Bay, an upmarket ITC located at the foot of the Al Hajar mountains and a short drive from downtown Muscat, remarked on the added potential that could come by integrating high-profile gatherings with real-world development planning. “Real added value will come from integrated events like these, that also incorporate deals signed with small and medium-sized enterprises. Such occurrences in the target sector could create a longer-term, sustainable economic impact and enhance the destination both from a perception point-of-view and experiential one,” he told OBG. “However, events like these can also serve simply as media transactions in a world that quickly moves to the next event,” he added.
BUILDING A REPUTATION: In 2010 the sultanate launched its first global branding campaign as part of efforts to raise awareness of Oman at a time when concerns about travelling in the region were heightened. Adding to this, efforts to develop additional tourist attractions and open up more areas of the country to affluent visitors had a significant impact. Events like the Louis Vuitton America’s Cup World Series, which Oman hosted in 2016, have helped to cement the sultanate as a global sailing destination, while golf lovers are increasingly drawn to the country’s courses, and culture lovers to the new Royal Opera House Muscat, which was completed in 2011.
While there were concerns that the government’s attempts to attract a broader set of travellers to the sultanate might diminish its view as a luxury tourism destination, it seems this has not had much of an impact. Part of the plan was to increase the number of days – and cost – of a short-stay visa to encourage travellers to remain in the country for longer periods. “The government’s decision to raise the price of short-stay visas to OR20 ($52) had very little impact on Oman’s attractiveness as a luxury destination,” Morton Johnston, general manager of The Chedi Muscat, a five-star beach resort, told OBG. “Luxury travellers are not sensitive to this degree of price changes,” Johnston added.
CHANGING LANDSCAPE: The growing number of integrated tourism complexes (ITCs) – specially designated areas where non-Omani can buy real estate – is changing the higher-end tourism landscape along the coast and in the mountainous regions. In January 2018 foundation was laid on a OR385m ($1bn) ITC located 80km south-east of Muscat. Developed by Quriyat Development Company, the project is set to feature a golf course, a waterpark, and three-, four-and five-star accommodation, among other facilities.
“Luxury tourism has grown steadily over the past decades with a variety of travel brands entering the market. There are a number of projects in the pipeline today, and more hotel openings are planned for the coming years. This simply highlights the contribution of our segment and the attractiveness of the destination. There is a consistent demand for luxury tourism in Oman,” Katrin Herz, general manager of Al Bustan Palace Hotel, the five-star Ritz-Carlton-branded establishment in Muscat, told OBG.
“Oman is known as a luxury tourism destination and is on the bucket list for many well-travelled guests that are keen to explore the country and its welcoming people,” Herz added.
ADDED POTENTIAL: Despite the global attention Oman is receiving, more can be done to offer visitors a seamless luxury experience. This includes ensuring that high-end treatment is offered across the board – from arrival to departure – as well as delivering upmarket accommodation and activities throughout the country. “Muscat is well provided with luxury hotels and residences, while other cities are catching up” Barr Al Jissah’s Matraji told OBG. “The same disparity applies to tourism infrastructure where you can see that there are taxi-hailing applications, tour operators, etc., which are becoming increasingly competitive. There is still some work to be done and we are on the right track.” Efforts needed to fill the gaps are likely to be forthcoming in the near future, and despite additional investment needed for the overall landscape, Oman is set to continue to attract high-end visitors as more and more offerings open, helping to grow the sultanate’s reputation as a bucket-list destination for the more affluent traveller.
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