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Audit.Tax.Consulting.Financial Advisory.
Oman Hotel Information
Research by Ministry of Tourism in Oman and
June 2008
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Table of Contents
1 Existing Hotels - Their Classes
2 Existing Hotels - Their Guests
3
4
Existing Hotel Guests - Their Stay Patterns
Tourism - A Key Factor Driving Hotel Growth
5 Proforma Future Hotel Requirements Analysis at
31 March 2008
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1. Existing Hotels Their
ClassesHotels by class
5 star by region
4 star by region
D 3 star by region
2 star by region
Other hotels by region
A
B
C
F
E
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5 star hotels, though low in number
(12) account for 26% of rooms in theSultanate
Almost 55% of hotels are either 1star or unclassified; they account for25% of the hotel rooms
Hotels by class
32 (17%)
22 (12%)
17 (9%)
12 (7%)
101 (55%)
Hotel rooms by class in Oman
1,367 (15%)
1,221 (14%)
2,348 (26%)
1,812 (20%)
2,295 (25%)
5 Star
4 Star
3 Star
2 Star
Other
Source: Research by Deloitte 2008
2
A. Hotels By Class
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Muscat home to almost 79% of 5 star hotel rooms in Oman
Next highest is Dhofar followed by Al Batina and Musundam
5 star hotel rooms by region
79%
3%
13%
5%Muscat
Al Batina
Dhofar
Musandam
Source: Research by Deloitte 2008
B. 5 Star By Region
3
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Highest concentration of 4 star hotel rooms in Muscat
More or less equal distribution of 4 star hotel rooms among other regions Al Batina,Dhofar, Musundam and Al Dakhliya
4 star hotel rooms by region
8%
7%
6%
72%
7%
Muscat
Al Batina
Dhofar
Musandam
Al Dakhliya
Source: Research by Deloitte 2008
C. 4 Star By Region
4
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Muscat home to highest proportion (40%) of 3 star hotel rooms
Other important regions offering 3 star experiences include Dhofar, Al Sharqiya and AlDhahira
3 star hotel rooms by region
2%26%
4%
40%
11%
17%
Muscat
Al Batina
Dhofar
Al Dakhliya
Al Dhahira
Al Sharqiya
Source: Research by Deloitte 2008
D. 3 Star By Region
5
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Concentration of 2 star hotel rooms highest (44%) in Muscat
Dhofar home to next highest proportion (27%) of 2 star hotel rooms
2 star hotel rooms by region
27%
2%
12%
44%
10%
5%
Muscat
Dhofar
Musandam
Al Dakhliya
Al Dhahira
Al Sharqiya
Source: Research by Deloitte 2008
E. 2 Star By Region
6
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Muscat hosts a high proportion (41%) of other hotels 1 star and unclassified
Important regions home to other hotels include Dhofar, Al Dhahira and Al Sharqiya,among other regions
Other hotel rooms by region
7%14%
1%
41%
2%
12%
16%
7%
Muscat
Al BatinaDhofar
Musandam
Al Dakhliya
Al Dhahira
Al Sharqiya
Al Wusta
Source: Research by Deloitte 2008
F. Other Hotels By Region
7
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2. Existing Hotels Their
GuestsSource markets for 5 star hotels
Source markets for 4 star hotels
Source markets for 3 star hotels
D Source markets for 2 star hotels
Source markets for other hotels
A
B
C
E
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5 Star Hotels continue to entertain guests from GCC and Europe
Guests from Oman and other regions (Americas and Ocaenia included) are growingsegments
Source markets for 5 star hotels
0
50,000
100,000
150,000
200,000
250,000
300,000
Omani GCC Other Arabs Europeans Asians Others
Numberofgues
ts
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
A. 5 Star Key Source Markets
9
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4 Star Hotels receive guests from most source markets
European and Asian guests have increased over the years
Source markets for 4 star hotels
0
20,000
40,000
60,000
80,000
100,000
120,000
Omani GCC Other Arabs Europeans Asians Other
Numberofgue
sts
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
B. 4 Star Key Source Markets
10
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3 Stars fueled by strong local demand
Oman, Europe and Asia are key source markets for 3 Star Hotels
Source markets for 3 star hotels
0
5,000
10,000
15,000
20,000
25,00030,000
35,000
40,000
45,000
Omani GCC Other Arabs Europeans Asians Other
Numberofgue
sts
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
C. 3 Star Key Source Markets
11
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Surge in Omani guests for 2 Star Hotels over 2002- 2005
GCC, Europe and Asia are other important growing segments
Source markets for 2 star hotels
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Omani GCC Other Arabs Europeans Asians Other
Numberofguests
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
D. 2 Star Key Source Markets
12
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Large proportion of guests are Omani in other hotels
Significant usage of other hotels by guests from GCC, Europe and Asia
Source markets for other hotels
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Omani GCC Other Arabs Europeans Asians Other
Numberofgue
sts
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
E. Other Hotels Key Source Markets
13
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3. Existing Hotel Guests
Their Stay PatternsOmani guests
GCC guests
Guests from other Arabic countries
D European guests
Asian guests
Other guests
A
B
C
F
E
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More Omani guests stay in other hotels (1 star or unclassified)
Pattern of stay - Omani guests
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2002 2003 2004 2005
Numberofguests
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
A. Pattern of Stay Omani Guests
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Growing stay patterns in 5 star hotels and other hotels
Pattern of stay - GCC guests
0
20,000
40,000
60,000
80,000
100,000
120,000
2002 2003 2004 2005
Numberofguests
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
B. Pattern of Stay GCC Guests
16
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Stay in 4 star hotels highest among other hotel classes over 2002-05
Pattern of stay - Guests from other Arabic countries
0
5,000
10,000
15,000
20,000
25,000
30,000
2002 2003 2004 2005
Numberofg
uests
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
C. Pattern of Stay Guests from other Arabic countries
17
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Europeans prefer 5 and 4 star hotels over the others
European guests in 5 star hotels have grown two-fold during the period 2002-05
Pattern of stay - European guests
0
50,000
100,000
150,000
200,000
250,000
300,000
2002 2003 2004 2005
Numberofguests
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
D. Pattern of Stay European Guests
18
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Asian guests stay primarily in 4 star and other hotels
Asian guests in 4 star hotels have increased by 1.5 times over 2002-05
Pattern of stay - Asian guests
010,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2002 2003 2004 2005
Numberofgu
ests
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
E. Pattern of Stay Asian Guests
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This segment includes guests from Americas and Oceania
Their stay in 5 and 4 star hotels have been growing
Pattern of stay - Other guests
0
20,000
40,000
60,000
80,000
100,000
120,000
2002 2003 2004 2005
Numberofguests
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
F. Pattern of Stay Other Guests
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Tourism in Oman experiencing rising trends over the years
Number of international guests visiting Oman stood at over 1.6 million in 2006
Total guests to Oman
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Numberofgues
ts
Source: Research by Ministry of Tourism in Oman
A. Tourism in Oman
22
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Arab world continues to rank as key source market for tourism in Oman
Europe and Asia are other emerging source markets
International guests to Oman
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Arab
Countries
Africa Asia America Europe Oceania
Numberofgu
ests
2002 2003 2004 2005 2006
Source: Research by Ministry of Tourism in Oman
B. Tourism in Oman Key Source Markets
23
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Almost 16,000 rooms expected to be developed through Integrated Tourist Complexes
Muscat will be home to about 51% of these additional rooms
C. Planned Expansion through Integrated Tourist Complexes
24
Planned expansion of hotel rooms through Integrated Tourism Complexes
-
500
1,000
1,500
2,0002,500
3,000
3,500
4,000
2008 2009 2010 2011 2012 2013 2014 2015
Numberofro
oms
Muscat Dhofar Al Batinah Other
Source: Ministry of Tourism in Oman
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WTTC forecasts Omans Travel & Tourism Economy GDP to reach OMR 2,265 million by2018, contributing to 11.1% of National Accounts
Travel & Tourism Economy of Oman
-
500
1,000
1,500
2,000
2,500
2003 2004 2005 2006 2007(E) 2008 (F) 2018 (F)
OMRmillion
8.00
8.50
9.00
9.50
10.00
10.50
11.00
11.50
%o
fNational
Accounts
Travel & Tourism Economy GDP % of National Accounts
E - Estimate; F - Forecast Source: World Travel & Tourism Council
D. Future Outlook Travel & Tourism Economy
25
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WTTC forecasts Omans Travel & Tourism demand would witness 5% real growth(annualized) over the years 2009-18
Oman vs. neighbors
5.9
5.6
5.0
4.7
4.7
4.6
4.1
3.2
3.2
2.4
0 1 2 3 4 5 6 7
Bahrain
Qatar
Oman
Kuwait
United Arab Emirates
Syria
Jordan
Saudi Arabia
Lebanon
Yemen
10 year (2009-18) Real Growth Annualized (%)
Source: World Travel & Tourism Council
E. Future Outlook Oman vs. Neighbors
26
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5. Proforma Future HotelRequirements Analysis at
31 March 2008Muscat Analysis
Al Batinah Analysis
A
B
Dhofar AnalysisC
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28
MUSCAT ANALYSIS
Recommendations:
Licensing should be continued for:
3*, 2* and 1* hotels and apartments.
Small hotels and hotel apartments of 4* and
5* (100 rooms and less)
Assumptions:50 room per 1 star approval granted;75 room per 2 star approval granted;100 room per 3 star approval granted;
granted150 room per 4 star approvalAttrition rate of 40%
2,4001,61375515,00014,2459,0236,015-15,038-5,222TOTAL
3,3001,3101,96528%4,2002,2357354908%1,22529%1,5002 Star