·
Arrivals
to Oman to increase at a CAGR of 13% fuelled by visitors from GCC who accounted
for 48% of guests in 2017.
·
The
number of ATM visitors interested in doing business with Oman increased 13%
between 2016 and 2017.
·
Branded
hotel supply in Muscat expected to increase 12% annually to 2021.
Tourism
arrivals to Oman will increase at a Compound Annual Growth Rate (CAGR) of 13% between
2018 and 2021, according to data released ahead of Arabian Travel Market 2018
(ATM), which takes place at Dubai World Trade Centre from April 22-25.
Commissioned
by ATM, the Colliers International data, predicts the rise will be fuelled by visitors
from across the GCC, who accounted for 48% of guests in 2017. In addition,
arrivals from India (10%), Germany (6%), the UK (5%) and Philippines (3%) are also
expected to contribute heavily to the growth, supported by new visa processes
and improved flight connections.
Historically,
the Middle East has been the largest source market for Oman, with arrivals from
this group increasing at an annual rate of 20% between 2012 and 2017.
These
trends have contributed to a spike in companies looking to enter the Omani tourism
market, as demonstrated during ATM 2017 when the number of attendees interested
to do business with the Sultanate increased 13% compared to the 2016 edition of
the show. The number of attendees from Oman increased 18% over the same period.
Simon
Press, Senior Exhibition Director, ATM, said: “The latest data demonstrates the
growth in visitors to Oman will continue, supported by strategic investment
from the government as it turns to tourism to diversify its income streams.
Oman is a fantastic destination with responsible, eco, cultural and heritage attractions,
as well as being a key travel hub, with significant opportunity to capitalise
on transit itineraries for stopover visitors.”
Accommodating
the predicted influx, a number of major hotel chains have recently announced
properties in Muscat, driving the 12% CAGR over the next three years; from
10,924 rooms in 2017 to 16,866 keys in 2021.
These
include Muscat’s first Novotel ; a 4-star, 300-room Crowne Plaza; and the
304-room JW Marriott, all located near the Oman Exhibition & Convention
Centre. Additionally Starwood is developing a 5-star W Hotel, as part of
ongoing work at Muscat’s Royal Opera House.
In
October 2017, Mövenpick Hotels & Resorts strengthened its Oman expansion
strategy with the announcement of a third property in Muscat, the 370-key
Mövenpick Hotel Muscat Airport. Properties by Kempinski and Anantara are also
under development.
Leading
domestic investment, Oman Hotels and Tourism has committed to building 10
hotels across the country with a projected value of US$260 million by 2021.
Supply
in Muscat is dominated by five-star properties, accounting for 21%, and four-star,
accounting for 24%.
Press
said: “With strong existing demand from GCC leisure and business travellers,
Oman is preparing for even more 4- and 5-star guests over the coming years as work
completes on the Oman Exhibition and Convention Centre and Muscat Opera.
Occupancy could rise by as much as 5% in 2018, so Oman really is one to watch.”
Complementing
its hotel pipeline, Oman has made significant investments in other tourism
infrastructure, including airports. Expansions at Muscat and Salalah
International Airports pushed passenger figures to 12 million and 1.2 million
in 2016, an increase of 16.6% and 17% respectively and YoY growth to 2017
reached 18% and 24%, respectively. Further developments at three strategic,
regional airports are also ongoing.
Looking
ahead to ATM 2018, exhibitors from Oman include Hormuz Grand by Radisson
Collection, Oman, Park Inn by Radisson Hotel & Residence, Duqm, Oman
Ministry of Tourism and Oman Air.
Press
continued: “Echoing the same trends we see in tourism arrivals, the number of
attendees who visit ATM in order to break into this exciting market, is also
rising. As this continues in 2018, we look forward to facilitating business
opportunities that will drive the unprecedented level of development planned
for this unique and intriguing country.”
ATM
2018 has adopted Responsible Tourism as its main theme and this will be
integrated across all show verticals and activities, including focused seminar
session, featuring dedicated exhibitor participation.
ATM
– considered by industry professionals as a barometer for the Middle East and
North Africa tourism sector, welcomed over 39,000 people to its 2017 event,
including 2,661 exhibiting companies, signing business deals worth more than
$2.5 billion over the four days.
