Oman's heritage and tourism sectors achieve high completion rates in the annual plans of the Ministry of heritage and tourism
Director of the Oman Vision 2040 Office at the Ministry of Heritage and Tourism:
MHT's indicators and targets for 2021-2025 related to Oman Vision 2040's objectives have been approved
Enabling the private sector to invest in 25 historical monuments during the period of 2021-2025, where the number of the invested historical monuments reached to 12 sites
MHT aims at signing a number of 25 usufruct contracts during 2023, and a new package of investment opportunities will be revealed soon
The number of hotel rooms will be increased to 33 thousand rooms by the end of 2025
The Director of the Oman Vision 2040 Office at the Ministry of Heritage and Tourism MHT, emphasized that, the heritage and tourism sectors in the Sultanate of Oman achieved high rates in their annual plans, which are consistent with (Oman Vision 2040) objectives, while the volume of the planned and ongoing investments till the year of 2025, amounted to RO 2.7 billion, including RO 2.3 billion, classified as confirmed investments, according to the investment program of the Ministry of Heritage and Tourism.
Dr Rashid bin Saleh Al Hinai, Director of the Oman Vision 2040 Office at the Ministry of Heritage and Tourism, stated that, Oman Vision 2040 includes a number of targets in the tourism sector, including attracting investment ,financial sustainability, and enhancing the contribution of the tourism sector to the labor market.
He pointed out that, the work has been done side by side with the Oman Vision 2040 Implementation Follow-up Unit to develop the MHT's goals that related to the vision.
He emphasized that ,during the first quarter of this year of 2023, many indicators and targets of the heritage and tourism sectors were approved, such as targeting the value of investments in the sector to reach RO 3 billion for the period of 2021-2025, raising the number of hotel rooms to be not less than 33 thousand rooms by the end of 2025, and to raise the value of the tourism sector's contribution to the gross domestic product GDP to RO 920 million by 2025, to represent 2.75% to 3% of GDP.
It should be noted that the contribution percentage of the tourism sector to the GDP, at constant prices in 2021 reached 2.4%, according to the statistical data issued by the National Center for Statistics and Information NCSI.
In coordination with the Oman Vision 2040 Implementation Follow-up Unit, work is underway to develop other indicators such as the labour market indicators in the tourism sector, the identity and citizenship index , and the social welfare index, whereby the objectives of the Omani tourism strategy, the comprehensive tourism development plan and the various plans and programs of the MHT were taken into account when preparing these indicators.
Dr Rashid Al Hinai added that the investment index comes within the priority of the private sector, investment and international cooperation in Oman Vision 2040, where the Ministry of Heritage and Tourism, in cooperation with The National Program for Investment and Exports Development (Nazdaher) prepared the investment program for the MHT and it was completed during the first quarter of this year.
The investment program of the Ministry of Heritage and Tourism includes more than 440 diversified investment projects, as the volume of investments in the implemented and planned projects for the period of 2021-2025 amounted to about RO 2.7 billion, about RO 2.3 billion out of which, are confirmed investments.
In accordance with this investment program, the Ministry of Heritage and Tourism periodically follows up on projects based on the relative importance of these projects and on the size of the investment related to them, placing more focus on projects that cost RO 5 million or more, as well as focusing on projects that support the empowerment of local tourism.
Among the most important investments that are being monitored through this program are the investments related to the integrated tourism complexes, as the value of the planned investments for the period 2021-2025 amounted to about RO 1.5 billion, while one of the most prominent integrated tourism complex agreements that were signed during this year is the agreement to develop the Mandarin Oriental Project in the Governorate of Muscat.
In order to support the achievement of the targeted investment for the year 2025, MHT also issues approvals for private projects, based on submitting of supply and demand study, where 10 new approvals were granted during the first quarter of this year 2023.
It should be noted that the number of hotel rooms in the country till the end of the first quarter of 2023, reached 30,559 rooms.
As for the new projects on the lands belonging to the Ministry of Heritage and Tourism, the targeted plan during 2023 is to sign 25 usufruct contracts through a direct contracting system and to offer a number of investment opportunities to compete for it among private sector companies.
One of the main requirements of the Ministry during the current period is the availability of financial capacity with the investors, employment plans, local content of the projects and entertainment and tourism components of the projects , in accordance with the nature of each project and its contribution to support the strategic direction of MHT and the acceleration of the implementation of projects.
Regarding the small and medium enterprises SMEs, Dr. Rashid Al Hinai clarified that, the MHT pays great attention to this category, and work is underway to allocate a number of investment opportunities for SMEs , which will be presented in packages of opportunities during the coming period.
He stressed that, the Ministry of Heritage and Tourism has also adopted a local content policy, while all contracts costing less than RO 10,000 are awarded to small and medium enterprises.
Dr. Al Hinai also clarified that, the total government revenues from the tourism sector by the end of 2021 reached RO 3.8 million, compared to RO 12.4 million by the end of 2022, with a growth rate of 227% between 2021 and 2022, while the annual growth rate targeted to be achieved is not less than 5%.
He pointed out that, the decrease in the revenues during 2021 is attributed to the repercussions of the Covid 19 pandemic, but due to the exemptions obtained by investors in the sector, and to the improvement of the situation in the tourism sector and also due to the flowing of more investments in the sector and as a result of financial collection efficiency by the ministry, a high growth rate has been achieved in the total government revenues from the tourism sector in the year of 2022.
On the index of preserving heritage and culture, Dr. Rashid bin Saleh Al Hinai said that the Sultanate of Oman is currently preparing a file to include the archaeological site of Bisya and Salut in the World Heritage List.
The target also to be achieved in the year of 2025 is to enable the private sector and the civil companies to invest in 25 historical monuments, while it should be noted here that the Ministry of Heritage and Tourism was able to sign a number of 12 investment contracts up to date, the most recent of which was the Bahla Fort investment contract.
The work is also underway on a number of projects, including the implementation of a field work program to monitor the fall of meteorites on the Sultanate of Oman, preparation for publishing a scientific book on meteorites, supporting the private museums and heritage houses, the implementation of the innovation project in the Omani Sarooj and its production in commercial quantities for the restoration and maintenance of heritage buildings, continuing the archaeological excavations and surveys, attracting archaeological missions, and producing scientific publications specialized in this field.
The ministry of Heritage and Tourism is also implementing promotional campaigns and partnerships in the targeted markets to increase annual events for domestic tourism,attracting international events and weddings parties ,attracting the charter trips and cruise ships , attracting the organizing of conferences events in Oman , increasing the number of meetings held in the Oman , and increasing the incentives, while the associated targets have been set and work has begun on the implementation process .
As for the future plans to complete the achievement of these targets and the set timetable for their implementation, the director of the Oman Vision 2040 Office at the Ministry of Heritage and Tourism clarified that , the comprehensive tourism development plan is considering the main reference plan of the ministry as a medium-term executive plan through which the implementation of projects and programs affiliated with the ministry is followed up, in accordance with the annual operational plans.
He pointed out that, there are specialized executive programs including, for example, the investment program in the heritage and tourism sectors, the adventure tourism program, the tourism promotion program, and the labor market and employment program in the tourism sector, while each of these programs includes a set of projects and initiatives to be implemented in accordance with specific timetables and to availability of the financial resources and capabilities.
He also clarified that, the ministry conducts a comprehensive quarterly assessment of the plans and programs related to these targets and the achieved values, so that they are shared with the Oman Vision 2040 Implementation Follow-up Unit and the concerned authorities in this regard, the Ministry also conducts a midterm evaluation of the approved operational plan.
Dr. Rashid Al-Hinai also pointed out that, the draft tourism law comes within the priority objectives of legislation and the judiciary in Oman Vision 2040, while the amended draft law is in the advanced stages of its legislative session. This law aims at keeping pace with the changes in the global tourism sector, give flexibility to simplify procedures, and grant broader powers to the Ministry of Heritage and Tourism in regulating the sector.
Dr. Rashid Al-Hinai concluded his statements, saying that ,the preliminary data for the year 2022 shows an improvement in the general situation of tourism, as the number of international visitors increased from 652 thousand visitors during the year of 2021 , reached to 2.9 million visitors during the year 2022,while The activity of accommodation and food services in 2022 , recorded a growth at constant prices of about 17.30%, that due to the positive growth recorded by all performance indicators of the tourism sector in 2022, compared to the previous year.
It is worth noting that the Oman Vision 2040 Office at the Ministry of Heritage and Tourism is concerned with following up and ensuring integration between planning and implementation in the ministry, to achieve the goals of Oman Vision 2040. It is also the link between the ministry of Heritage and Tourism and the Follow-up Unit for the implementation of Oman Vision 2040 in whatever related to efforts to achieve the objectives of the vision in the tourism sector.