06 August 2007
MUSCAT -- Hoteliers are upbeat about Oman emerging as an all-year-round destination in not too distant future. The hospitality sector is already booming right now. Profits and occupancy rates are up.

The results for 2006 and the first half of 2007 are extremely encouraging. For hoteliers, 2006 was a turnaround year but 2007 is a spectacular year following government's lifting of visa restrictions and making it easier for people to get visas on arrival. This was the starting point for Muscat taking off as a major tourist destination, say hoteliers. As a result, in peak season, tour operators approach hoteliers asking for rooms, rather than they chasing the tour operators.

Importantly, the boom in tourist traffic has coincided with the boom in the Sultanate's economy. The upcoming industrial projects in Sohar, Sur and Barka, and mega tourism and residential development projects like The Wave, Blue City, Al Hoota Cave, Yitti Resort and Muscat Golf Project and Tourism Village of Ras al Hadd in Al Sharqiyah are all set to transform the image of Oman. Naji Abi Farah of Golden Tulip says following the government's active participation in recent major international travel trade shows, leisure segment has witnessed a rapid growth, which will continue throughout 2007 and beyond.

York Brandes of the Chedi Muscat says: "It appears all major hotel companies are trying to join the Oman hospitality industry, and projects like The Wave and Blue City will strongly support the industry. It is important to promote the country as all-year-round destination". Pawan Mishra of Ramee Guestline Hotel says "prospects for the tourism sector are very bright, as the country on the whole is becoming a popular destination. Definitely more hotels, apartments and resorts are needed to keep up with the pace of development". K V Raj of Oman Hotels and Tourism Co says, "Given the continuing boom in the tourism sector, the demand for rooms outstrips supply in peak seasons. The Ministry of Tourism along with the private sector is addressing this aspect of the challenge".

The hospitality sector witnessed occupancies veering towards the 100 per cent mark on many recent occasions in 2005 and 2006, say experts. Grand Hyatt, Muscat averaged 75 per cent occupancy in 2004, which rose to 85 per cent in 2005 and more in 2006. Radisson SAS Hotel, Muscat averaged 78 per cent in 2004, which increased to 95 per cent in 2005 and 2006. Holiday Inn Muscat averaged 67.28 per cent occupancy in 2004, which increased to 74.32 per cent in 2005 and 2006. InterContinental Muscat averaged 69.8 per cent occupancy in 2004, which jumped to 72.3 per cent in 2005, and more in 2006. The occupancy rate continues to be stronger in 2007 for all hotels.

After a 22-year journey, Sheraton Oman Hotel is undergoing an RO 10 million renovation programme for a complete facelift to catch up with the Sultanate's booming tourism industry. Due to the size of the project, the renovation necessitated a total closure of the hotel from the first week of January 2007, with a schedule of re-opening in October 2007. Barr al Jissah Resort has come a long way since its inception in early 2006. The RO 70 million resort, spread across an area of 450,000 sq metres of breathtaking beachfront, is witnessing a growing occupancy rate. The Chedi Muscat, established in 2003, averaged 75 per cent occupancy in 2006 against 55 per cent in 2004, and 76 per cent in 2005. The current year holds out even brighter prospects, say hoteliers.

By Hasan Kamoonpuri

© Oman Daily Observer 2007