Omani Guests - Oman Ministry of Tourism

Oman Hotel Information
Research by Ministry of Tourism in Oman and
June 2008
Audit.Tax.Consulting.Financial Advisory.

Table of Contents
1 Existing Hotels - Their Classes
2 Existing Hotels - Their Guests
3
Existing Hotel Guests - Their Stay Patterns
4
Tourism - A Key Factor Driving Hotel Growth
5 Proforma Future Hotel Requirements Analysis at
31 March 2008

1. Existing Hotels – Their
Classes
A
B
C
D
E
F
Hotels – by class
5 star – by region
4 star – by region
3 star – by region
2 star – by region
Other hotels – by region

A. Hotels – By Class
5 star hotels, though low in number
(12) account for 26% of rooms in the
Sultanate
Almost 55% of hotels are either 1
star or unclassified; they account for
25% of the hotel rooms
101 (55%)
Hotels by class
12 (7%)
17 (9%)
22 (12%)
Hotel rooms by class in Oman
5 Star
32 (17%)
2,295 (25%)
1,221 (14%)
2,348 (26%)
1,812 (20%)
4 Star
3 Star
2 Star
Other
1,367 (15%)
Source: Research by Deloitte © 2008
2

B. 5 Star – By Region
Muscat home to almost 79% of 5 star hotel rooms in Oman
Next highest is Dhofar followed by Al Batina and Musundam
3%
5 star hotel rooms by region
13%
5%
Muscat
Al Batina
Dhofar
Musandam
79%
Source: Research by Deloitte © 2008
3

C. 4 Star – By Region
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
6%
7%
4 star hotel rooms by region
7%
Muscat
Al Batina
8%
Dhofar
Musandam
72%
Al Dakhliya
Source: Research by Deloitte © 2008
4

D. 3 Star – By Region
Muscat home to highest proportion (40%) of 3 star hotel rooms
Other important regions offering 3 star experiences include Dhofar, Al Sharqiya and Al
Dhahira
3 star hotel rooms by region
17%
40%
Muscat
Al Batina
11%
Dhofar
Al Dakhliya
4%
Al Dhahira
Al Sharqiya
26%
2%
Source: Research by Deloitte © 2008
5

E. 2 Star – By Region
Concentration of 2 star hotel rooms highest (44%) in Muscat
Dhofar home to next highest proportion (27%) of 2 star hotel rooms
10%
2 star hotel rooms by region
5%
12%
2%
44%
Muscat
Dhofar
Musandam
Al Dakhliya
Al Dhahira
Al Sharqiya
27%
Source: Research by Deloitte © 2008
6

F. Other Hotels – By Region
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
2%
Other hotel rooms by region
12%
Muscat
41%
Al Batina
Dhofar
16%
Musandam
Al Dakhliya
Al Dhahira
7%
Al Sharqiya
Al Wusta
1%
14%
7%
Source: Research by Deloitte © 2008
7

2. Existing Hotels – Their
Guests
A
B
C
D
E
Source markets for 5 star hotels
Source markets for 4 star hotels
Source markets for 3 star hotels
Source markets for 2 star hotels
Source markets for other hotels

A. 5 Star – Key Source Markets
5 Star Hotels continue to entertain guests from GCC and Europe
Guests from Oman and other regions (Americas and Ocaenia included) are growing
segments
Source markets for 5 star hotels
300,000
Number of guests
250,000
200,000
150,000
100,000
50,000
0
Omani GCC Other Arabs Europeans Asians Others
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
9

B. 4 Star – Key Source Markets
4 Star Hotels receive guests from most source markets
European and Asian guests have increased over the years
Source markets for 4 star hotels
120,000
100,000
Number of guests
80,000
60,000
40,000
20,000
0
Omani GCC Other Arabs Europeans Asians Other
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
10

C. 3 Star – Key Source Markets
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
Number of guests
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Omani GCC Other Arabs Europeans Asians Other
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
11

D. 2 Star – Key Source Markets
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
Number of guests
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Omani GCC Other Arabs Europeans Asians Other
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
12

E. Other Hotels – Key Source Markets
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
Number of guests
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Omani GCC Other Arabs Europeans Asians Other
2002 2003 2004 2005
Source: Research by Ministry of Tourism in Oman
13

3. Existing Hotel Guests –
Their Stay Patterns
A
B
C
D
E
F
Omani guests
GCC guests
Guests from other Arabic countries
European guests
Asian guests
Other guests

A. Pattern of Stay – Omani Guests
More Omani guests stay in other hotels (1 star or unclassified)
Pattern of stay - Omani guests
160,000
Number of guests
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2002 2003 2004 2005
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
15

B. Pattern of Stay – GCC Guests
Growing stay patterns in 5 star hotels and other hotels
Pattern of stay - GCC guests
120,000
100,000
Number of guests
80,000
60,000
40,000
20,000
0
2002 2003 2004 2005
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
16

C. Pattern of Stay – Guests from other Arabic countries
Stay in 4 star hotels highest among other hotel classes over 2002-05
Pattern of stay - Guests from other Arabic countries
30,000
25,000
Number of guests
20,000
15,000
10,000
5,000
0
2002 2003 2004 2005
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
17

D. Pattern of Stay – European Guests
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
300,000
250,000
Number of guests
200,000
150,000
100,000
50,000
0
2002 2003 2004 2005
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
18

E. Pattern of Stay – Asian Guests
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
Number of guests
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2002 2003 2004 2005
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
19

F. Pattern of Stay – Other Guests
This segment includes guests from Americas and Oceania
Their stay in 5 and 4 star hotels have been growing
Pattern of stay - Other guests
120,000
100,000
Number of guests
80,000
60,000
40,000
20,000
0
2002 2003 2004 2005
5 star 4 Star 3 Star 2 Star Other
Source: Research by Ministry of Tourism in Oman
20

4. Tourism - A Key Factor
Driving Hotel Growth
A
B
C
D
E
Tourism in Oman
Key source markets
Planned expansion through Integrated Tourist Complexes
Future outlook – Travel & Tourism Economy
Future outlook – Oman vs. neighbors

A. Tourism in Oman
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
1,800,000
1,600,000
1,400,000
Number of guests
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Research by Ministry of Tourism in Oman
22

B. Tourism in Oman – Key Source Markets
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
700,000
600,000
Number of guests
500,000
400,000
300,000
200,000
100,000
0
Arab
Countries
Africa Asia America Europe Oceania
2002 2003 2004 2005 2006
Source: Research by Ministry of Tourism in Oman
23

C. Planned Expansion through Integrated Tourist Complexes
Almost 16,000 rooms expected to be developed through Integrated Tourist Complexes
Muscat will be home to about 51% of these additional rooms
Planned expansion of hotel rooms through Integrated Tourism Complexes
Number of rooms
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-
2008 2009 2010 2011 2012 2013 2014 2015
Muscat Dhofar Al Batinah Other
Source: Ministry of Tourism in Oman
24

D. Future Outlook – Travel & Tourism Economy
WTTC forecasts Oman’s Travel & Tourism Economy GDP to reach OMR 2,265 million by
2018, contributing to 11.1% of National Accounts
Travel & Tourism Economy of Oman
OMR million
2,500
2,000
1,500
1,000
500
11.50
11.00
10.50
10.00
9.50
9.00
8.50
% of National Accounts
-
2003 2004 2005 2006 2007(E) 2008 (F) 2018 (F)
8.00
Travel & Tourism Economy GDP
% of National Accounts
E - Estimate; F - Forecast
Source: World Travel & Tourism Council
25

E. Future Outlook – Oman vs. Neighbors
WTTC forecasts Oman’s Travel & Tourism demand would witness 5% real growth
(annualized) over the years 2009-18
Oman vs. neighbors
Yemen
Lebanon
Saudi Arabia
Jordan
Syria
United Arab Emirates
Kuwait
Oman
Qatar
Bahrain
2.4
3.2
3.2
4.1
4.6
4.7
4.7
5.0
5.6
5.9
0 1 2 3 4 5 6 7
10 year (2009-18) Real Growth Annualized (%)
Source: World Travel & Tourism Council
26

5. Proforma Future Hotel
Requirements Analysis at
31 March 2008
A
B
C
Muscat Analysis
Al Batinah Analysis
Dhofar Analysis

MUSCAT ANALYSIS
Approved
Present 2007
Granted
Attrition
Net
Expected
Supply
Optimum 2015
Difference
Attrition
Rooms
Required
Grading
Number
%
Number
%
40%
Number
Number
Number
%
Number
40%
Number
5 Star
1,857
35%
6,251
41%
2,500
3,751
5,608
4,650
31%
(958)
-
(1,000)
4 Star
1,314
25%
4,738
32%
1,895
2,843
4,157
3,450
23%
(707)
-
(700)
3 Star
551
11%
2,824
19%
1,130
1,694
2,245
2,700
18%
455
303
800
2 Star <
1,500
29%
1,225
8%
490
735
2,235
4,200
28%
1,965
1,310
3,300
TOTAL
5,222
-
15,038
-
6,015
9,023
14,245
15,000
755
1,613
2,400
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 approval
Attrition rate of 40%
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)
28

DHOFAR ANALYSIS
Approved
Present 2007
Granted
Attrition
Net
Expected
Supply
Optimum 2015
Difference
Attrition
Rooms
Required
Grading
Number
%
Number
%
40%
Number
Number
Number
%
Number
40%
Number
5 Star
300
21%
1,111
39%
444
667
967
516
12%
(451)
-
(500)
4 Star
121
8%
1,000
35%
400
600
721
516
12%
(205)
-
(200)
3 Star
352
25%
695
24%
278
417
769
645
15%
(124)
-
(100)
2 Star <
657
46%
50
2%
20
30
687
2,623
61%
1,936
1,291
3,200
TOTAL
1,430
-
2,856
-
1,142
1,714
3,144
4,300
1,156
1,291
2,400
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 approval
Attrition rate of 40%
Recommendations:
Licensing should be continued for:
2* and 1* hotels and apartments.
Small hotels and apartments of 3*, 4* and
5* (100 rooms and less)
29

AL BATINAH ANALYSIS
Approved
Present 2007
Granted
Attrition
Net
Expected
Supply
Optimum 2015
Difference
Attrition
Rooms
Required
Grading
Number
%
Number
%
40%
Number
Number
Number
%
Number
40%
(in surplus)
5 Star
109
24%
1,212
33%
485
727
836
240
20%
(596)
-
(600)
4 Star
143
32%
150
4%
60
90
233
144
12%
(89)
-
(100)
3 Star
26
6%
1,900
52%
760
1,140
1,166
336
28%
(830)
-
(800)
2 Star <
172
38%
400
11%
160
240
412
480
40%
68
45
100
TOTAL
450
-
3,662
-
1,465
2,197
2,647
1,200
(1,447)
45
(1,400)
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 approval
Attrition rate of 40%
Recommendations:
Licensing should be continued for:
2* and 1* hotels and apartments.
Small hotels and apartments of 3*, 4* and
5* (100 rooms and less)
30

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