Tourism
From The Report: Oman 2023
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The tourism sector has long been the focus of Oman’s efforts to diversify the economy away from a reliance on hydrocarbons. After slow but steady growth throughout the 2010s, the tourism sector’s contribution to GDP reached a high of 2.9% in 2019. However, restrictions imposed due to the Covid-19 pandemic weighed on the sector’s performance for much of 2020. As part of its long-term economic diversification strategy, Oman Vision 2040, the Ministry of Heritage and Tourism and the Oman Tourism Development Company, Omran, are pursuing sector expansion with renewed vigour. Tourism has been earmarked for 21% of the OR11bn ($28.6bn) in investment opportunities promoted under the National Programme for Investment and Export Development for the 2021-25 period. The sector rebounded strongly in terms of visitors and expenditure in 2022, and government investment in hotel capacity and niche markets such as integrated tourism is helping the country make progress towards its 2040 goals.

This chapter contains an interview with Hashil Al Mahrouqi, CEO, Omran.

Articles from this Chapter

Overview

Building blocks: Renewed efforts to increase arrivals and contribution to GDP in line with national development blueprints
OBG
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The tourism sector has long been the focus of Oman’s efforts to diversify the economy away from a reliance on hydrocarbons. After slow but steady growth throughout the 2010s, the tourism sector’s contribution to GDP reached a high of 2.9% in 2019. However, restrictions imposed due to the Covid-19 pandemic weighed on the sector’s performance for much of 2020. As part of its long-term economic diversification strategy, Oman Vision 2040, the Ministry of Heritage and Tourism (MoHT) and the Oman…

Interview

Elevating experiences: Hashil Al Mahrouqi, CEO, Oman Tourism Development Company (Omran), on expanding tourism offerings
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Interview: Hashil Al Mahrouqi Where do you see the most promising investment opportunities in the development of the country’s tourism and hospitality sector? HASHIL AL MAHROUQI: We have identified promising investment opportunities that align with trends in sustainable tourism, ecotourism and experience tourism. The government has taken significant steps to attract foreign direct investment in the sector, with a view to promoting ease of investment and profitability, while also ensuring the potential…

Analysis

A natural niche: The authorities work to create a distinctive value proposition to boost investment and diversify source markets
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Diversifying the economy and reducing reliance on revenue from the hydrocarbons industry is a critical component of Oman Vision 2040. The government has identified tourism as one of the key sectors that can deliver this objective and help to create a more resilient and sustainable economy. The sultanate’s tourism development plan encompasses updating the legal framework, modernising tourism laws and their executive regulations, implementing an effective governance system for the industry, and…

Analysis

Cross-border connections: Gulf countries develop strategic partnerships to promote the region as a leading international travel destination
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In 2022 the Middle East witnessed the sharpest relative increase in international arrivals of any region in the world, solidifying its rebound from the disruption of the Covid-19 pandemic and further raising its profile as an increasingly attractive destination for inbound tourism. According to the UN World Tourism Organisation (UNWTO), in 2022 international arrivals in the Middle East recovered to 83% of the levels prior to the onset of Covid-19 pandemic, outperforming all other regions. Road…

Analysis

Greener destinations: The global tourism industry looks to adopt sustainable practices in its post-Covid-19-pandemic recovery strategy
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The global tourism industry – which accounted for 10% of GDP and 8% of global emissions in 2019 – is faced with the challenge of ensuring continued growth while working towards net-zero emissions goals. Several stakeholders in emerging markets and further afield offer useful case studies to understand what a decarbonised future for the industry could look like. The global tourism industry faces numerous challenges when it comes to decarbonisation, as highlighted by a November 2021 report from…

Analysis

Shifting dynamics: Many strategies focus on sustainable solutions and support for small businesses as governments look to boost arrivals
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As emerging markets develop new attractions and tap into new visitor source markets, they are leveraging technology and sustainable development in line with emissions targets. Following sharp declines in 2020, international tourism figures rebounded in 2021 to reach approximately 63% of pre-Covid-19 pandemic levels in 2022. Notably, in September of that year arrivals in the Middle East and the Caribbean surpassed 2019 levels by 3% and 1%, respectively. The recovery in travel demand is projected…