Jebel Sifah is one of two developments from Muriya Tourism Development totalling 13 hotels and 2900 rooms. Jebel Sifah is one of two developments from Muriya Tourism Development totalling 13 hotels and 2900 rooms.

As the Omani hotel market puts another strong year of hotel performance behind it, with the latest industry figures revealing that tourism now contributes $2.4 billion to the country’s economy, some experts are predicting that the country will soon find itself at a crossroads between relying on an established market of luxury hotels, or finally establishing an economy hotel market to call its own

The year 2013 was by all accounts another strong trading period for the Omani hotel market, with the latest industry figures from Colliers International revealing a 3% rise in the value contributed to Oman’s economy in the first half of last year, with 2.4 million tourists passing through Muscat and Salalah airports.

Looking ahead to 2014, the positive market figures continue, with a recent World Tourism and Travel Council report predicting that the Oman hotel market is looking at an annual growth rate of 6-8% until 2017, as new investments pour in to develop the sultanate as a tourism destination.

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Speaking at a recent Arabian Hotel Investment Conference regional briefing in Muscat, STR Global area director for the Middle East & Africa Philip Wooller was similarly upbeat, declaring: “The charm of the Sultanate of Oman is undeniable – its people, rich history and culture, nature and activities all combine to offer a wonderful leisure experience.

“The Omani government forges ahead with the vision for 2020 with considerable inward investment and with the new airport in Muscat due to open in late 2014, demand for hotel rooms is likely to grow dramatically. In 2013 demand continued to outstrip the new supply which is an encouraging indicator – demand is up for hotel rooms by 23.3% while supply is up 9.7%; hotel revenues grew by 27%,” he added.

Wooller was joined in his optimism by Chiheb Ben-Mahmoud, head of Jones Lang LaSalle’s hotels & hospitality group - Middle East & Africa, who said: “Oman is a well-established destination on the world travel and tourism landscape with a unique offering combining exotic heritage, unique natural sites and a tourist friendly culture as well as opening the Arabic peninsula on the Indian ocean world.

“With such a unique offering, the hospitality industry is a strong value creator for private investors and economic development contributor for the country as a whole.

“The partnership between the public and the private sectors in Oman has been driving hotel investment in the Sultanate. While Oman, as a tourism destination, has very strong attributes, it could well be expected at the same time to benefit from the exceptional growth that tourism has been witnessing throughout the GCC region,” he said.

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