Cluttons Oman: Number of hotel rooms in Muscat expected to grow by up to 21% per annum over the next five years
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Cluttons Oman: Number of hotel rooms in Muscat expected to grow by up to 21% per annum over the next five years
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Category: Middle East - Oman - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2011-07-25
Despite some fluctuations, development in the number of hotels and hotel rooms in Oman has progressed at an average rate of 7% per annum over the last five years
Muscat, Oman - Cluttons, the real estate specialist that has enjoyed a dedicated Middle Eastern presence since 1976, issued its Oman Q2 reports. According to the report, the economic indicators show that the Sultanate is continuing its recovery from the impacts of the global financial crisis, buoyed by increasing oil prices. The long-term repercussions of the recent unrest in Oman and the wider region are difficult to predict but there has been a noticeable impact on the hotel sector with occupancy rates for March and April significantly reduced in comparison to the same months in 2010.
Hospitality Sector
Despite some fluctuations, development in the number of hotels and hotel rooms in Oman has progressed at an average rate of around 7% per annum over the last five years, according to figures released by the Ministry of Tourism. The figures show that the comparative rate of hotel development in Oman has slowed from 2006 to 2010 in comparison to 2000 to 2005.
Two areas in Muscat have, however, witnessed marked development. Over the last two years alone, the Al Khuwair area has seen the opening of the 4 star Platinum, City Seasons and Park Inn hotels and the 2 to 3 star Ibis, Rotana, Samara and Tulip Inn hotels which have added approximately 1,000 rooms to the area's stock. In addition, we have noticed a large number of unbranded, owner-operated hotel apartments being developed in the central to western areas of Al Khuwair, Bausher, Ghubrah and Azaiba aimed primarily at the budget market.
Cluttons estimates hotel projects identified as having a moderate-to-high chance of being built over the next 5 years would add 5,000 to 6,000 rooms to the 3 to 5 star hospitality sector in the Muscat capital area. This compares to a total of 3,777 rooms in the 3 to 5 star sector in Muscat in 2010 and equates to a potential average annual growth rate of approximately 18% to 21% over the coming five years. In comparison, it is evident that the number of hotel guests is closely linked to the number of inbound tourists, and that these have both grown at an average annual rate of around 7% over the last five years.
Recent and encouraging news from The World Travel & Tourism Council (WTTC) has indicated that they expect Oman's tourism industry to grow from 1.5 percent of total GDP in 2010 to 2.4 percent of GDP by 2020. This is a welcome forecast, as under current occupancy levels, the rate of growth of inbound tourism will need to accelerate significantly, to maintain average occupancy levels as the projected pipeline of hotels comes into the market.
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