Bright outlook for tourism sector in 2010: MackiBy Conrad Prabhu
MUSCAT —Oman’s government foresees a healthy pickup in tourism activity during 2010, in trend with a widely anticipated recovery in global financial markets. The bright outlook for the tourism sector, according to Ahmed bin Abdulnabi Macki (pictured), Minister of National Economy and Vice-President of the Financial Affairs and Energy Resources Council, will have a positive bearing on tourist arrivals, as well as spur the implementation of mega tourism projects.

“As for 2010, recent data suggests that the global recession will come gradually to an end, and the world economy is expected to grow at 3.1 per cent, with mainly advanced economies growing at 1.3 per cent, and the Middle East at 4 per cent, according to IMF forecasts. And with the recovery in financial markets expected, significant credit contractions are unlikely, and capital flow will again begin to grow broadly,” Macki said.

“Therefore expectations for tourism in 2010 are more optimistic in terms of the number of tourists, hotel occupancy, hotel nights, and the implementation of integrated tourism complexes and general tourism infrastructure projects,” he noted in comments to the Observer. The government’s expansionary fiscal policy, coupled with monetary policies designed to increase liquidity, have helped mitigate the adverse impacts of the global credit crunch and the financial crisis on the implementation of mega tourism projects and related initiatives, the minister said.

“The Omani government has decided to continue implementation of developmental projects of the Five-Year Plan as scheduled, and with no change. Development of Muscat and Salalah airports and Al Duqm Development Project are considered part of the projects contributing to the development of tourism. All these projects are under implementation according to schedule,” Macki stated.

The global financial and economic crisis, said Macki, had a “slight” impact on Oman’s tourism sector during the first half of 2009. The number of foreign tourists visiting Oman, room occupancy, and nights spent, were not affected. On the contrary, tourist arrivals increased by 15 per cent during the first half. The sector’s added value also increased slightly by 1.5 per cent, due to the decline in the level of hotel fees and charges, he noted.

Discussing the impacts of the worldwide downturn on the economy during 2009, Macki said different sectors were affected to different degrees. Real estate, for example, witnessed a slowdown at the start of 2009 as a result of the liquidity crunch and vacillation by overseas investors. Still, the sector’s added value climbed by 15.7 per cent during the first half of 2009 compared to the previous year. Also marginally affected was the wholesale and retail trade sector whose added value fell 8.6 per cent during the first half of 2009, a decline attributed to the slump in international prices of primary commodities.

However, the power and water supply and related construction sector fared reasonably well, registering a 9.3 per cent increase in added value during the first half of 2009, compared to 8 per cent during the corresponding period in 2008. The worst affected was the petroleum, natural gas and refined petroleum products segment, whose added value plummeted around 45 per cent during the first half of 2009 compared to the same period in 2008. Natural gases’ added value declined by about 13 per cent during the same period, while refined petroleum products fell by about 78 per cent. This segment was affected mainly by the sharp decline in international oil and gas prices, Macki stated.