Oman’s hotel revenues rise 12.2 %

Oman’s hotel revenues rise 12.2 %

Oman Convention Center
Oman Convention Center

Recent statistics released by the ministry of tourism state that hotel room capacity in Oman is forecast to grow at a compound annual growth rate of 5.3% over the period 2011 to 2016. Tourist arrivals are expected to grow at a CAGR of 5.7%, between 2012 and 2022. The ministry aims to increase GDP contribution of tourism from two per cent in 2011 to around 3.5% in 2015, as reported by Oman Daily Observer.

Occupancy rates are expected to increase from 53% in 2011 to 58.6% by 2016. Average daily rates are also set to benefit as occupancy rates strengthen. An increase in flights between Salalah and Dubai and Sharjah has also aided the country’s recent tourism figures, with an average of 94% occupancy over the Eid weekend, in Salalah. The country is also seeing a growth in locations outside Muscat, with Salalah, Khasab and Duqm all receiving significant investment into the hospitality pipeline.

The tourism ministry said that it expected 2,000 new hotel rooms to be added by the end of 2013. Hotel room capacity is also forecast to expand at a compound annual growth rate of 5.3% by 2016. Projects like the new US$80 million Azaiba Hotel and planned Oman Convention Center, which will include a Crown Plaza hotel, all point towards a growing hotel market.

The Four Seasons plans for a hotel in Oman as part of its expansion into the Middle East luxury market. Gloria Hotels and Resorts also mentioned plans to open one of its hotels in Oman in 2015.

Gary Marshall
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Gary Marshall
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