Tourism sector to add 41,000 jobs this year

By A Staff Reporter — MUSCAT — Oman will lead the Middle East region in terms of growth in travel and tourism sector in 2014, according to the annual report by the World Travel and Tourism Council (WTTC), an international organisation of travel executives promoting the industry worldwide. The Travel and Tourism Economic Impact 2014 report also states that the country is well positioned to post one of the most robust industry growth rates worldwide in the coming year. The Sultanate’s travel and tourism industry directly contributed RO 982.8 million to its economy in 2013, which is three per cent of its overall GDP, states the report, adding that it is expected to further increase by 10.2 per cent to RO 1,082.7 million in 2014. Travel and tourism activities are expected to grow by 5.4 per cent per year to reach RO 1,834.2 million by 2024, making up 3.9 per cent of the GDP.

The WTTC’s annual report states that the total contribution of Oman’s travel and tourism sector, including investments, supply chain and induced income impacts, amounts to twice its direct contribution to the GDP. The sector’s total contribution in 2013 was RO 2,078.6 million, comprising 6.4 per cent of the total GDP, and is expected to go up by 9.4 per cent to reach RO 2,274 million in 2014. By 2024, the total contribution of the travel and tourism sector to Oman’s GDP is expected to rise by 5.5 per cent per year to reach RO 3,884 million, amounting to 8.2 per cent of the GDP. According to the report, in 2013, Oman’s travel and tourism sector supported 37,000 direct jobs (3.3 per cent of total employment) and is expected to grow by 11.4 per cent to reach 41,000 jobs in 2014. This is one of the strongest growths worldwide and the fastest in the Middle East region. It further reports that, in total, the sector gave employment to 72,000 people in 2013 and is predicted to offer 79,500 jobs in 2014 — an increase of 10.6 per cent — while, by 2024, it will create 60,000 direct jobs, an increase of 3.9 per cent per year over the next 10 years.

Meanwhile, the occupancy rate in 4-star and 5-star hotels has risen by 3.2 per cent by the end of Q1 this year as compared with the same period of 2013. Hotel revenues also increased 7.4 per cent to RO 48 million during the same period signaling that the hospitality sector continues upward trend, according to statistics from the National Centre for Statistics and Information (NCSI). The significant growth rate in the Omani hospitality sector has been projected by reports published by a number of domestic travel and tourism firms has had. Both hotel occupancy volume and rate were expected to grow this year as a result of improved services. The Sultanate’s tourism outlook has been upbeat and the sector was set for significant growth according to reports published by several domestic travel and tourism firms and agencies, according to them both hotel occupancy volume and rate were projected to grow this year as a result of improved services and the steady rise in tourists arrival.

NCSI’s QI tourism report indicated that the number of tourists who occupied 4-star and 5-star hotels reached 198,383 tourists mostly from Europe, America and GCC countries. In 2013 the total number of tourists stood at 614,000 with the revenues of 4-star and 5-star hotels hitting RO 150 million. High hotel occupancy rate is a significant indicator of healthy growth in the hospitality sector and with the substantial increase in tourist arrivals which began last year demand for hotel rooms has seen an exponential growth in demand for hotels rooms in tandem with a similar increase in room supply.

Tuesday 06th, May 2014 / 23:37 Written by Oman Observer 

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