MUSCAT – Experts gathered at the regional briefing on Oman organized by the Arabian Hotel Investment Conference say the country's tourism industry is poised for an annual growth rate of between 6 to 8 percent until 2017, highlighting a serious commitment from the government and private investors to develop the sultanate as a vibrant tourism destination. Filippo Sona, Director and Head of Hotels in MENA for Colliers International, citing a study published by his company titled “Oman, Muscat: Economy Hotel – Market Gap”, said Oman continues to develop as a tourist destination by investing in large scale projects- primarily in Muscat- which contribute to building the “Oman Brand.” “The majority of economy hotels in Oman are either locally branded or unbranded, many of which are not purpose built and of a limited size. Due to the fragmented nature of the market, hotel apartments and guest houses tend to compete with the economy hotel market, as there is a lack of differentiation between the two products from a consumer standpoint,” Sona further said. However, the announced forthcoming supply of hotels across Oman only consist of 4- star and 5-star properties which, according to Sona, will only serve to further widen the existing gap in the market for branded economy hotels. Based on the Colliers Econometric Model for the period 2013-2017, the Muscat market could potentially absorb an additional 985 economy hotel rooms over and above forthcoming supply. Joining Sona in the discussions of the development of Oman's economy and mid-market hotel segments were Hussain Al Rakhis, Business Development Manager of Action Hotels, the Owners & Operators of ibis Muscat and Holiday Inn Muscat-Al Seeb and Hala Matar Choufany, Regional Managing Director of HVS Hospitality Services. In the opening session, Philip Wooller, Area Director for the Middle East & Africa of STR Global, presented a look at hotel performance indicators and the development pipeline, highlighting planned global and regional developments and then zoned in on Oman. He said “the charm of the Sultanate of Oman is undeniable – its people, rich history and culture, nature and activities all combine to offer a wonderful leisure experience. The Omani government forges ahead with the vision for 2020 with considerable inward investment and with the new airport in Muscat due to open in late 2014 demand for hotel rooms in likely to grow dramatically. In 2013 demand continues to outstrip the new supply which is an encouraging indicator – demand is up for hotel rooms by 23.3 percent while supply is up 9.7 percent; hotel revenues grew by 27 percent.” In an update on the Hotel Investment Market in Oman by Chiheb Ben-Mahmoud, Head of Jones Lang LaSalle's Hotels & Hospitality Group - Middle East & Africa, he said “Oman is a well-established destination on the world travel and tourism landscape with a unique offering combining exotic heritage, unique natural sites and a tourist friendly culture as well as opening the Arabic peninsula on the Indian ocean world. With such a unique offering, the hospitality industry is a strong value creator for private investors and economic development contributor for the country as a whole. The partnership between the public and the private sectors in Oman has been playing a big role in driving the hotel investment in the Sultanate. While Oman, as a tourism destination, has very strong attributes, it could well be expected as the same time to benefit from the exceptional growth that tourism has been witnessing throughout the GCC region.” Latest industry figures show 6,616 hotel rooms and service apartments are currently in the pipeline for Muscat in the next five years as confirmed by hotel developers. All of forthcoming hotel supply, however, is in the 4 and 5 stars segments. There has been a influx of large scale projects such as The Wave, Imagine Project, Muscat Plaza and the Seeb Seafront in Muscat which will act as catalysts to stimulate inbound demand. AHIC 2014, which is organized by MEED and Bench Events, will take place at the Madinat Jumeirah on May 4-5, 2014. — SG
