Muscat: Fitch Solutions International retained a positive outlook for tourism recovery in Oman over 2022 and 2023 with stronger growth envisaged over the 2024-2026 medium-term forecast period. The market was depressed due to Covid-19 over 2020-21 but a notable recovery has been under way since late Q421. Underlying growth momentum over the coming years will be supported by the strategic Vision 2040 economic diversification agenda and the highly capitalised position of the state’s tourism development authority, OMRAN. As of late May 2022, the government continues to aggressively implement its rebound strategy, unveil digital marketing initiatives and announce new sector specific investments.
The plans are part of Oman Vision 2040 to diversify the economy and reduce its reliance on oil. Oman has already attracted RO 1.7 billion in tourism investments out of a planned RO 3 billion between 2021 and 2023.
The number of integrated tourism complex projects in the country currently stands at 21, out of which 11 are on government lands owned by the Ministry of Heritage and Tourism, and there are five development agreements already signed for these complexes and eight usufruct contracts.
The Fitch Solutions report provides expert analysis, independent forecasts, competitive information about the tourism industry and the economic outlook for the sector around the world. The report of the tourism sector in the Sultanate of Oman was monitored through the agency’s sources that include independent evaluation, tourism spending forecasts, government spending on tourism, and indicators of access to tourism.
The Oman Tourism Report has been researched at source and features Fitch Solutions’ independent assessment and forecasts for tourist expenditure; government expenditure on tourism; passenger arrivals and departures by mode of transport, reason for travel, origin and destination; and the accommodation market.
The Ministry of Heritage and Tourism confirmed that the incentives announced by the government contributed directly to alleviating the impact of the Covid-19 pandemic on the tourism sector, noting that it is continuing to implement the comprehensive tourism development plan that was approved to develop the sector through capacity building, support for local tourism companies, integrated tourism promotion programmes.
Oman hotel revenues continue to improve after an immensely difficult period in both 2020 and 2021. Hotel revenues witnessed triple-digit improvements with three- to five-star categories bringing in RO 13 million in revenues, a massive improvement over the RO 4 million brought in during the same time last year.
In terms of guests and occupancy, more than 140,000 guests stayed in hotels during May, compared to 68,000 in May 2021, a 105 per cent improvement. Meanwhile, occupancy rates averaged 42.8 per cent compared to 24 per cent in May 2021.
