30 July 2016
Muscat - Tourism will be Oman's main economic driver in the next 10 years in terms of employment and contribution to domestic tourism, and in turn, GDP, Maitha al Mahrouqi, Under-Secretary, Ministry of Tourism, has said. Speaking at an event organised by the Oman Chamber of Commerce and Industry (OCCI), Maitha said an Oman Tourism Strategy (2016-40) has been envisaged with a total budget of RO 18 billion and RO 936 million. According to her, the road map for implementation of the strategy is divided into three phases: Part I (2016-20): The first direct programme is to add 5,620 new hotel rooms and generate 76,384 direct jobs.

Part II (2020-31) includes the launch of 15,419 new hotel rooms and generate 126,900 jobs. Part III (2031-40) envisions the launch of 29,596 new hotel rooms and providing direct employment to 242,900. Omran has recently announced that plans are afoot to deliver three hotels with 900 rooms in 2017 and 2018. Maitha said the country is closely following the "global tourism awakening", whose results will be a boon to the economy hit by slump in oil prices. She cited five main benefits for the Sultanate from tourism.

First, it will see an increase in the number of jobs associated with the sector until 2040, rise in the volume of investments, which is poised to reach RO 19 billion, of which 12 per cent will be from the public sector. Tourism is expected to increase contribution to the country's GDP from 6 to 10 per cent by 2040. The next benefit is the development of local economy, and the small and medium enterprises (1,200 entities) until 2040. The country will see an overall improvement in the quality of life for citizens.

The contribution of the tourism sector in the Sultanate stood at RO 195.8 million last year, accounting for 2.7 per cent of the country's GDP. "Tourism will be the main economic engine in the next 10 years with a 11 per cent increase in demand for employment at the global level, and its contribution to global GDP rising more than 9 per cent," she said. "While tourism sector accounts for 11 per cent of total employment at the global level, its share is 9 per cent of global GDP and 6 per cent of exports. It accounts for 30 per cent of exports in the service sector."

© Oman Daily Observer 2016