Oman tourism projects face 'financial challenges'

Tourism projects in Oman are facing tough "financial challenges" with around 65% of private sector projects failing to get off the ground due to a lack of development funding.

The assertion was made by the Sultanate's Minister of Tourism Ahmed bin Nasser Al Mehrzi during a recent event organised by the Oman Chamber of Commerce and Industry (OCCI).

Minister Al Mehrzi explained "most of the tourism projects are facing financial challenges", adding that the main challenge was a lack of funding for development.

Between 2006 and 2010, Minister Al Mehrzi said the Muscat government gave the green light for 41 major tourism projects but little progress had been made in bringing them to fruition.

He added "only three projects are operating, nine are under implementation, 19 are not started, five have been shelved and two will start operation this year.

"(As many as) 65% of the projects did not see the light. As per the initial plan, these projects would have added 15,000 rooms if implemented. But it did not happen."

Another issue hampering the industry is a lack of Omanis entering the sector.

Here Minister Al Mehrzi stated "if we want to compete, we need to have qualified people. "We also found that we need to have a vision for tourism sector. In order to have an integrated planning, we need active an involvement of several agencies like hotels, tour operators and airlines. "

Tourism accounted for up to 3% of Oman's gross domestic product (GDP) last year and this is set to rise to 5.4% this year, according to the World Travel and Tourism Council (WTTC).

The WTTC expects tourism in Oman to directly employ up to 50,000 jobs by 2021.

For more information go to www.omantourism.gov.om/wps/portal/mot/tourism/oman/home

Image shows the Oman Tourism College.

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