Oman Tourism Report Q2 2009

The tourism industry in Oman is comparatively new and a relatively small part of the total economy but has been growing quite rapidly. The majority of tourists arrive in Oman from other GCC countries and therefore has reason to think it will be impacted less by the global financial crisis than most other destinations.

According to Rajha Abdulamir, Oman’s Tourism Minister, foreign investors have given assurances they would push on with tourism projects in Oman despite the global credit turmoil. "All foreign investors, who are building resorts or planning to do so, have pledged to continue with their projects despite the international financial crisis," Abdulamir told newswire Reuters. "These projects are important as to their contribution to our economy and the government is committed to give its support," she added.

Oman has allocated around 15 sites for tourism developments it estimates will cost US$20 billion over seven years, as part of plans to lure visitors. Projects include the $400 million Muscat Golf Course, the US$7 billion Blue City, the US$2 billion Salam Yiti resort by Dubai Holding and the Murya resorts project, planned by a unit of Egypt’s Orascom Development Holding.

Oman attracted some 650,000 tourists in 2007, 12 percent more than a year earlier. The goal, set in 2002, is to reach one million visitors in 2009.

According to the latest figures, in 2008 tourism accounted for just under 4% of Oman's GDP. However, the Sultan plans to target wealthy niche tourists by focusing on cultural, environmental and adventure packages. The government also intends to upgrade tourism infrastructure and increase its overseas advertising, with a particular focus on the EU, the US and Asia.

Despite a general distaste for engaging in substantive political reform, the Omani leadership has started to think more carefully about upgrading its institutional apparatus - seemingly in response to international pressure. The most intriguing development, and one that may prefigure other changes through 2009, is the establishment of an Oman Human Rights Commission – a move that triggered the sultanate's removal in November from an official US State Department list of countries that it said had not done enough to stop human-trafficking.