·
Arrivals
to Oman to increase at a CAGR of 5% fuelled by visitors from India who
accounted for 21% of total arrivals in 2018
·
The
number of ATM visitors interested in doing business with Oman increased 67%
between 2017 and 2018
Tourism
arrivals to Oman will increase at a Compound Annual Growth Rate (CAGR) of 5% between
2018 and 2023 to 3.5 million, according to data released ahead of Arabian
Travel Market 2019 (ATM), which takes place at Dubai World Trade
Centre from 28 April – 1 May 2019.
Commissioned
by ATM, the Colliers
International data predicts the rise will be fuelled by visitors
from India, who accounted for 21% of total international arrivals during 2018. In
addition, arrivals from the UK (9%), Germany (7%), Philippines (6%) and the UAE
(6%) are also expected to contribute to the growth, supported by the expansion
of Muscat International airport, new and improved flight connections and new
electronic and short stay visa processes.
Looking
to acquire their share of these high-growth markets at ATM 2019 will be a number
of exhibitors from the Sultanate, including the
Oman Ministry of Tourism, Oman Air, The Chedi Muscat, Al Fawaz Tours and Al Bustan Palace – A Ritz Carlton Hotel.
Danielle Curtis,
Exhibition Director ME, Arabian Travel Market, said: “The latest data
demonstrates the growth in tourism arrivals to Oman and is set to continue as
we look ahead to 2023, supported by the recently opened Muscat International Airport
expansion as well as strategic investment from the government as it turns to
tourism to diversify its income streams away from hydrocarbon receipts.
“Despite
facing significant competition from other popular regional destinations, Oman
has distinguished itself as a unique tourism destination over the past few
years - with a wide-range of responsible, eco, cultural and heritage
attractions on offer.”
While
India is expected to remain Oman’s top source market over the next five years –
accounting for 389,890 of tourism arrivals by 2023 - the Philippines is projected
to witness the highest CAGR, at 11% compared with 3% for India.
The
UK, Oman’s second largest source market, is forecast to closely follow with a
CAGR of 9%, while Germany and the UAE will experience comparative growths of 7%
and 2% respectively.
Reflective
of this projected growth, during ATM 2018, the number of delegates, exhibitors
and attendees interested in doing business with Oman increased 67% compared to the 2017 edition of the show.
Curtis
said: “Similar to tourism arrivals, the number of attendees who visit ATM in
order to break into the Omani market is also rising. As this looks set to
continue in 2019, we look forward to facilitating business opportunities that
will drive the unprecedented level of development planned over the coming
years.”
Accommodating
the predicted influx in arrivals, the Colliers research reveals a strong
pipeline of new supply expected to enter the Muscat market – with approximately
4,600 additional keys forecasted by 2022.
Supply
in Muscat is dominated by the upper-midscale segment of the market, with
four-star properties currently accounting for 32%, five-star properties
accounting for 24% and three-star properties accounting for just 14%.
During
2019 alone, 20 new hotels are expected to open in Muscat including three new
five-star hotels and three four-star hotels as well as five three-star hotels,
six two-hotels and three one-star hotels as Oman’s Ministry of Tourism looks to
make accommodation more affordable in order to cater to a wider market.
“At present, around 57% of the hospitality
demand in Muscat is generated by corporate demand, while leisure travellers
account for 32% of total demand. By the end of 2019, average occupancy is
predicted to increase 5% to around 59.7%,” Curtis added.
Complementing its hotel pipeline, Muscat has made
significant investment in its airports. The new terminal at Muscat
International Airport, which opened in March 2018, is expected to increase
annual passenger traffic by at least 10% year-on-year – driven by growth from
domestic carriers Oman Air and Salam Air as they continue to add new and direct
routes.
ATM,
considered by industry professionals as a barometer for the Middle East and
North Africa tourism sector, welcomed over 39,000 people to its 2018 event,
showcasing the largest exhibition in the history of the show, with hotels
comprising 20% of the floor area.
Building
on the success of last year’s event, ATM 2019 had adopted cutting-edge
technology and innovation as its main theme, and this will be integrated across
all show verticals and planned activities.