Oman Market Report 2014

Transcription

1 FOOD AND HOSPITALITY OMAN 2014 Oman Market Report 2014 on the Food & Hospitality Industries 9-11 September 2014 Oman International Exhibition Center Muscat, Sultanate of Oman

2 Table of Contents The Food Industry in Oman 2 The Oman Hospitality Industry 3 Major Tourism Projects in Oman 4 News on the Food & Hospitality Industries in Oman Strategic plan to boost fisheries sector ready 7 Jumeirah Group inks pact to operate luxury resort in Muscat 8 Al Baleed resort to be completed in Ritz-Carlton plans new luxury hotel in sultanate 10 Star hotel project in Ruwi to be complete by New hospitality network to support Omani F&B businesses 12 $1.3 billion for fisheries sector 13 RO 50mn expansion of Muscat Grand Mall announced 13 Omran, affiliates to add 3,650 new hotel rooms in five years 14 Oman plans 10 fishing ports 15 Freshplus opens first Oman store in Bausher 16 $10bn tourism projects underway 17 Rotana Resort to expand sultanate's tourism offerings 18 Master plan for tourism port unveiled 19 Construction of Muscat Hills Phase 2 begins 20 Sultanate s hotel revenue, occupancy show robust growth 21 Oman to invest $250m in Integrated Fisheries Hub in Duqm 22 RO8mn shopping complex for Oman's defence staff soon 23 Oman plans to add 2,000 new hotel rooms 24 Crowne Plaza Duqm opens 25 Sultanate s first sugar refinery to come up in Sohar port area 26 Karama Hypermarket to open fifth outlet 27 Muriya s hotel portfolio to grow to 14 properties 27 Food & Hospitality Oman 2014 I Market Report I 1

3 The Food Industry in Oman Oman is emerging as one of the fastestgrowing markets for international suppliers to the foodservice industry. The increased purchasing power of the Omani population has resulted in the growth of hypermarkets in the last few years. Currently, regional and international chains have been entering the market, while Muscat-based chains have been expanding to other parts of the country. Restaurants and coffee shops are attracting a wide market due to their valuefor-money factor. Majority of their patrons are foreign visitors, who come to Oman as business or tourist visitors. The Hypermarket Segment Hypermarkets are also a strong segment in Oman, catering to the lower, middle and higher-end market. These are patronized because of the value of the products offered. UAE and France-based chains as well as the local chains, are continuously opening outlets all over the country. Apart from the hypermarkets, there are a fair number of street front retail and small shops that are mostly located in the outlying areas of Muscat. Lulu Hypermarket Muttrah Fish Market Carrefour Supermarket Agriculture and Fisheries Agriculture, livestock and fisheries are among the oldest and most important sectors of Oman s economy. They play a vital part in feeding the population, providing employment for a large number of Omanis and helping to boost the country's GDP. The fisheries industry has been the primary non-oil export earner in the Sultanate. With a coastline over 1,700 kilometres long, Oman is the largest producer of fresh fish in the region. Under the government s 8 th Five-Year Economic Development Plan ( ), it plans to invest about US$ 520 million in a variety of agriculture and fisheriesrelated infrastructure projects and upgrades in existing facilities. This will do much to boost national export revenues. In recent years, the government has been focusing on the modernization and development of the agricultural and fisheries sector. While the Sultanate has produced a variety of crops and other agricultural products for many years, recent public and private investments have the potential to turn the sector into a significant economic contributor and boost national security. Food & Hospitality Oman 2014 I Market Report I 2

4 The Oman Hospitality Industry: Experiencing Significant Growth Oman s tourism industry is positioned for long-term growth and is increasingly taking up most of the Sultanate s annual GDP share. Tourism and inward investment are the government s top priorities, aiming to transform the sector into a main contributor of the economy. This is part of the development plan that aims to diversify the country s economic dependency on oil and shift attention to property, retail and leisure industries. In its Five-Year Plan ( ), the government focuses on intensifying tourism promotion programs and plans that include the construction of billiondollar hotel properties, tourist resorts, hospitality schools, and developing the country s infrastructure. A number of tourism-related property development projects (and which are presently at various stages of construction) are being implemented. A considerable percentage of this are fourand five-star hotels and resorts, integrated tourism complexes (ITCs), road systems, airports, seaports and industrial zones. With the economy performing well and market confidence increasing, growing signs of interest from potential buyers are seen in the secondary ITC development market. Demand is mainly driven by the quality, convenience, facilities and environment that these developments provide, accompanied by the changing lifestyle resulting from higher income and availability of more competitive mortgages. According to statistics provided by the World Travel and Tourism Council, the percentage contribution of travel and tourism to GDP is expected to increase from 6.7 per cent in 2009 to 9.9 per cent by Projects are expected to raise GDP by 20 per cent. In line with the government s plan to make tourism a key driver of the economy, it aims to attract 12 million visitors yearly by 2020 a significant increase from the estimated 2.5 million visitors in The increased market con dence has been spurred by stro ng economic growth and higher levels of government spending on infrastructure projects as part of its long-term growth strategy. (Matthew Wright, Associate Director, Cluttons, Oman) The Retail Segment Oman s retail market is developing in the same pace and is seen to become an attractive market. Retail is divided between the shopping malls or destination shopping centers and smaller roadside retail units that are situated on the ground floor of residential and commercial buildings. There is a rapid growth in destination shopping centers, which cater to the value, middle-class and higher-end markets. Food & Hospitality Oman 2014 I Market Report I 3 Food & Hospitality Oman 2014 I Market Report I 3

5 Several new retail outlets are part of multiuse developments. Oman s first major ITC, The Wave, a project costing about US$2.5 billion, offers residential freehold property in addition to tourism-related infrastructure such as a golf course and retail center. Eight retail outlets opened here since The value segment is presently one of the strongest in Oman s retail sector, owing to the relatively lower average incomes in Oman than elsewhere in the region. This Major Tourism Projects in Oman segment includes global brands which are well-received by the buying public. The retail sector offers several investment opportunities in niche markets, one of which is adventure tourism products and equipment, apart from the larger, more traditional segments. Overall, the sector is seen to expand, with value-driven retail remaining a key driver, but still with opportunities to invest in luxury retail. (Source: The Report: Oman 2013, Oxford Business Group) PROJECT PROJECT DESCRIPTION PROJECT COST Muscat International Airport Addition of a new 460-meter long, 200- meter wide and 44-meter high main building with a four-star 90-bed capacity hotel, a 101-meter high control tower, and traffic control management center and a second runway that will enable handling of 200,000 tonnes of cargo and 12 million passengers annually US$ 3.5 billion The Wave Muscat Muriya Tourism Development: Jebel Sifa Complex Al Sodah Island, Salalah Salam Yitti Resort An integrated tourism complex with a total area of 2.5 million square meters that includes four hotels, a golf course, a 400- berth marina, commercial and residential spaces, retail facilities, restaurants, and coffee shops. Construction of 18 apartments and 63 villas Phase 1: Construction of five hotels, including one boutique hotel A five-star beach resort hotel with 300 rooms, a deluxe beach hotel and spa with 150 rooms, a luxury mountain hotel USD 2.5 billion USD 2.5 billion Food & Hospitality Oman 2014 I Market Report I 4

6 with 150 rooms; an 18-hole golf course; a 150-berth marina; a 25,000-square foot of retail space in a souk; and an eco-center Omran Projects: Al Jabal al Akhdar Hotel City Hotel Duqm Hotel Project Fort Hotel A five-star resort hotel with 80 suite rooms, spa suites and Cliffside restaurant and a pool A five-star resort hotel with 250 rooms, a five-star hotel with 350 rooms and 100 service apartments and A four-star business hotel with 230 rooms, a business center, and conference facilities A five-star boutique hotel with 120 guest suites, and restaurant and spa facility US$ 1 billion Oman Convention & Exhibition Centre Design and construction of a convention centre with capacity of 5,500-6,000 seats, a 30,000-square metre exhibition centre/multi-user sports centre, including several hotels in 5, 4 and 3-star categories, 20 meeting rooms (each with 250 seating capacity), a business park covering approximately 70,000 square metres, restaurants, cafes, press centre, shopping mall (125,000 square metres) and recreation facilities. USD 1 billion Muscat Hills Golf & Country Club Addition of a world-class clubhouse and hotel USD 110 million A robust pipeline of residential and tourism projects as well as hotels and resorts worth US$10 billion are underway. Food & Hospitality Oman 2014 I Market Report I 5

7 NEWS ON THE FOOD & HOSPITALITY INDUSTRIES IN OMAN Food & Hospitality Oman 2014 I Market Report I 6

8 Strategic plan to boost fisheries sector ready Source: Oman Tribune, 31 December 2013 A strategic plan to develop the fisheries sector has been approved and blessed by His Majesty Sultan Qaboos Bin Said, HE Dr Fuad Bin Ja afar Al Sajwani, Minister of Agriculture and Fisheries, told the Shura Council on Monday. The ministry is currently working to complete this strategy in collaboration with the World Bank. A contract has also been signed with FAO to prepare the strategy of the agriculture sector and develop the road map for the sector. The road map aims at developing and upgrading the agricultural and livestock sectors to ensure sustainable development and enhance food security, the minister said. The Ministry of Agriculture and Fisheries also plans to implement a comprehensive package of policies and strategies that will help achieve the economic and social development of the Sultanate, diversify sources of income, enhance food security, provide food crops, generate job opportunities, ensure social stability and improve the living standards of those working in this sector. The Shura Council session was chaired by HE Khalid Bin Hilal Al Ma awali. The minister highlighted the comprehensive and intensified development process witnessed by the agriculture and fisheries sector during the Eighth Five-Year Plan, thanks to the Royal care and continuous support accorded by His Majesty. The ministry will revise the plans and programmes aimed at promoting the agriculture, livestock and fisheries sectors. This aim may be achieved by rehabilitating the existing traditional activities, use of modern technology, ensuring optimum use of available resources and introducing subsidy programmes that enable their sectors to enhance their contribution to food security, the minister said. The number of Omanis working in agriculture and its allied sector according to the agricultural census 2012, 2013 is 255,000 famers, 43,000 licensed fishermen, more than 2,700 labourers involved in fish transport and 2500 at the fish installations. The value of exports from this sector enhances the Sultanate s trade balance, the minister said. The minister said that his ministry attaches great care to develop agricultural and live stock activities that are of high value with special focus on quality. This may include dates production, vegetables, fruits dairy products, red meat, poultry, table eggs and honey. A complete package of procedures including marketing will be implemented to achieve this aim. The minister s statement included eight themes, namely The Ministry s policies to Promote the Food Security in the Eighth Five-Year Plan ( ), The Infrastructure to Promote Agricultural and Fisheries Development, The Strategic Plan to Develop Fisheries Sector ( ), The Efforts of the Ministry of Agriculture and Fisheries to Develop Fish Farming, as well as The Ministry s Efforts to Regulate the Fish Marketing and its Plans to Support and Develop Livestock Sector. Food & Hospitality Oman 2014 I Market Report I 7

9 The themes included pesticide control to ensure they do not affect human health and those of animals, the role of the Agricultural and Fisheries Development Fund in developing the agricultural and fisheries sectors, the feasibility of Al Najd Company for agriculture development in terms of the value added to the national economy and the efficient utilisation of water resources. Shura Council members raised queries on various issues and topics, including rapid establishment of central and advanced fish markets in various wilayats, the importance of marketing fish products, as well as regulating the export of fish to ensure self-sufficiency in Omani market. Out of 72 members who requested permission to discuss the minister s statement, 22 spoke on Monday. The council will resume on Tuesday the discussion of minister s statement. Jumeirah Group inks pact to operate luxury resort in Muscat Source: Times of Oman, 09 December 2013 Jumeirah Group, the global hotel company and a member of Dubai Holding, has signed a management agreement with Saraya Bandar Jissah to operate a luxury resort in Muscat. The resort is currently under development and is expected to open in When complete, the Saraya Bandar Jissah resort will consist of two hotel components, one consisting of 206 rooms and the other of 106 rooms, located in the picturesque cove of Bandar Jissah, near Muscat, nestled between the Hajar Mountains and the Sea of Oman. The resort lies 15 minutes south of the city centre and 40 minutes from Muscat International Airport. The overall development will include a 1,200-square metre Talise spa, a dive centre, a wide range of sports and leisure facilities, a selection of restaurants, bars and cafes and a kids club. The resort will also include conference and banquet facilities that cater to Oman s growing attraction as a destination for conferences, meetings and large-scale events. The resort forms part of a larger development that includes high-end residential apartments, townhouses and villas, taking advantage of some of the most beautiful, unspoilt coastline in the Middle East. Sheikh Hamood Sultan Al Hosni, CEO of Saraya Bandar Jissah, said: Saraya Bandar Jissah will make a major contribution to the high-end hotel market in Oman. We are pleased to be partnering with Jumeirah given the reputation that it has in the region, which matches our own world-class standards. We are confident that, when complete, the properties will attract discerning travellers who are familiar with Jumeirah s level of luxury and who want to discover more about what Saraya Bandar Jissah and Jumeirah can offer them as a destination. Food & Hospitality Oman 2014 I Market Report I 8

10 Gerald Lawless, president and CEO of Jumeirah Group, said: We are delighted to have been selected by Saraya Bandar Jissah to operate this resort in one of the most beautiful parts of Oman. As we continue to expand the Jumeirah brand across the Middle East, we bring our exceptional quality of service to loyal guests in new markets, helping them to discover the very best in luxury and hospitality and the beauty of emerging destinations like the Omani coastline. Jumeirah Group currently operates 22 luxury hotels and serviced apartments, including 11 in the Gulf region, six in Europe and five in Asia. A further 15 hotels are now under development. Al Baleed resort to be completed in 2015 Source: Times of Oman, 23 October 2013 Baleed Anantara Resort & Spa, a five-star resort coming up adjacent to Al Baleed World Heritage archeological site (Unesco) in Salalah, will be completed in the first quarter of The 50:50 joint venture between Omran and Musstir, operated by Anantara (Minor Group), the resort is aimed at providing the increasing numbers of visitors an easier access to the site and make their visits comfortable and memorable. Cyril Piaia, chief executive of Musstir said, "The construction was started in January 2013 and is in on the right track." "Structures of 44 chalets have already been completed and other works are going on." Providing details of the major features of the prestigious project, Cyril said, "A prime location for the land (140,000 square metrse) located within the city (10 minutes from the airport), while benefiting from more than 600 metres of a white sandy beach, the concept is a topend Oman style architecture resort incorporating a tropical Asian landscape style." The resort will encompass 30 hotel rooms located in a central hotel building and 106 pool villas. These villas will include ten studio chalets, 87 one-bedroom chalets, 10 two-bedroom chalets and one three bedroom chalet. Besides, the resort will feature a health spa, recreational and function facilities, a library, and a speciality restaurant. The over-all cost of the project is estimated at around OMR5 million. It may be recalled that the government has identified the Dhofar Governorate, with its lush green landscapes and rich historical and archaeological legacy, as one of the Sultanate's prime emerging tourism destinations. Food & Hospitality Oman 2014 I Market Report I 9

11 Tourism infrastructure Omran has invested in major tourism infrastructure projects that will create demand and encourage private sector participation in the hospitality and tourism sector. Anantara operates properties that celebrate and preserve cultural traditions, historical heritage and natural beauty and is proud to bring a unique brand of laidback luxury, intuitive service and a sense of discovery to more breathtaking destinations across Asia and the Middle East, including Vietnam, Bali, Phuket and Abu Dhabi. The Anantara Experience was born in 2001, with the launch of the first Anantara Resort in Thailand's historic seaside resort enclave of Hua Hin. Ritz-Carlton plans new luxury hotel in sultanate Source: Muscat Daily, 17 September 2013 The Ritz-Carlton Hotel Co will come up with a new world-class luxury hotel project in the sultanate as part of its global expansion plans, which will add 20 new hotel projects to its portfolio by In a recent press release on its website, the global hotel brand announced a major expansion and development initiative that will take the total number of its properties to 100 hotels and resorts around the world by In an statement to Muscat Daily, Pascal Duchauffour, area vice-president, Europe & Middle East, The Ritz-Carlton Hotel Co, confirmed the project in the sultanate, saying, We are looking at Oman for a new project under our luxury portfolio. He said, Our current property in Oman, Al Bustan Palace, attracts travellers from the UK and Germany as well as regional markets, contributing to the growing tourism industry in Oman. Duchauffour added the company plans to add four properties to its Middle East and Africa portfolio, including properties in Cairo and Marrakech. Ritz-Carlton Hotel had entered into an agreement with Oman's Ministry of Tourism in 2011 to acquire the full management of Al Bustan Palace Hotel in Muscat and the hotel was re-branded under The Ritz-Carlton portfolio. The robust pipeline of hotel projects indicates a continued strong demand for Ritz-Carlton products and services. We are delighted at the company s continued positive growth, said Herve Humler, president and chief operations officer in the press release. Across the globe, and especially in Asia and the Middle East, we will be the undisputed top-tier luxury hospitality brand by 2016, Humler said. In the last 12 months, Ritz-Carlton has opened three properties, including Dorado Beach, a Ritz-Carlton Reserve in Puerto Rico, The Ritz-Carlton, Abu Dhabi a beach-front resort in UAE, and the brand s first hotel in the European city of Vienna, Austria. No less than six new Ritz-Carlton hotels are scheduled to open in the last quarter of this year, including two properties in China; The Ritz-Carlton, Chengdu and The Ritz-Carlton, Tianjin; The Ritz-Carlton, Food & Hospitality Oman 2014 I Market Report I 10

12 Aruba will add to the Caribbean portfolio; and the luxury brand is slated to open in three new countries with The Ritz-Carlton, Herzliya, Israel; The Ritz-Carlton, Almaty in Kazakhstan and The Ritz-Carlton, Bangalore, India. The 2014 schedule follows with a record number of new openings including Kyoto, Japan; Nanjing, China; Rabat, Morocco; Cairo, Egypt; Manesar, India and Bali, Indonesia. Star hotel project in Ruwi to be complete by 2014 Source: Oman Daily Observer, 20 August 2013 The ambitious three-star hotel-cumshopping complex project that is far anticipated to give a complete facelift to the Ruwi High Street is to be ready to sell by August-September 2014 while the shopping complex will be ready by October this year. The cost of the hotel project named West Gate Palace owned by Gulf International Investment Company, a consortium of several private entities, is estimated at RO 7.5 million and will generate more than 100 direct job opportunities for the local workforce and several hundreds of jobs indirectly, according to Ramesh Nair, General Manager of the project. We are expecting to complete the shopping mall by October this year while the hotel which, at the moment, has a 3- star accreditation of the Oman s Ministry of Tourism will be ready to occupy by third quarter of next year. The hotel, which will have 120 rooms of all standards, including deluxe suites, will also have a gamut of facilities including a vast basement parking for nearly 200 cars besides state-of-the-art sauna and steam bath, a covered swimming pool, five restaurants including a multi-cuisine eatery, traditional Arabic coffee shop are other attractions. The Consortium, which consists of several individuals in and around Oman, started constructing the hotel in early 2010 and the construction has been carried out by the construction division of the Kehlan Trading and Contracting while Asha Khimji is the designer consultant. Heddington Plaza Hotel is the brand and the hotel management company is West Gate Palace Hotel. Capitalising on the growing need for MICE destinations, the hotel will house five banquet halls including one collapsible which can accommodate 800 persons besides two board rooms on different floors. He said although the hotel currently has a 3-star accreditation, by the time of opening, they will try to shift to 4-star standard. We want to be a name to reckon with in Oman when it comes to conducting meetings or for a relaxing stay in Muscat. Additionally, we will try to get 4-star recognition from the Ministry of Tourism as we are expecting to excel in our facilities and services to be provided, Nair added. Food & Hospitality Oman 2014 I Market Report I 11

13 New hospitality network to support Omani F&B businesses Source: Muscat Daily, 22 July 2013 The Omani Hospitality Network, an association of local food and beverage (F&B) and catering services firms, currently under formation, will work to bring Omani businesses under one umbrella to support and create collaborations among entrepreneurs and represent their interests. The association has received the approval of the Ministry of Commerce and Industry and will function under the Public Authority for the Development of SMEs. Speaking to Muscat Daily, Salim al Busaidy, president of the Omani Hospitality Network, said entrepreneurs running restaurants, cafés and catering businesses will be included as members. He said, Initially, we were only 12 members. Most of us face common problems and challenges in the F&B business. We realised that to address our challenges we should form a network to collaborate and support entrepreneurs in order to improve their businesses and make them successful. We will analyse the rules and regulations of authorities and how they affect F&B businesses. We will work together to identify the common problems that entrepreneurs face in this business and highlight solutions. As part of the network, entrepreneurs will be working together rather than competing with each other. Busaidy added that the network would strive to set an example in the SME sector by holding training programmes in Oman and abroad, organising events and scholarships, and inviting international chefs to Oman. Ghada al Harthy, a founding member, said, Entrepreneurs in the F&B sector can increase their businesses significantly if they are willing to learn, cooperate and collaborate with each other. She said the trend in the F&B business around the world is more focused towards local businesses rather than on franchise or commercial contracts with foreign players. But this idea is yet to take off in Oman, because entrepreneurs are hesitant to trust local brands and they prefer to go with already established franchise concepts. We want the idea of typical local brands to be promoted here, Ghada added. The association will organise an Iftar buffet at Qurum City Centre (QCC) on July that will include the best Omani and international cuisine in one location. Fourteen Omani restaurants and cafes and registered home-based businesses will participate in the event, which will coincide with Oman's Renaissance Day, to raise money for a charitable organisation. Our plan is to organise such events every three months in Muscat as well as in other regions. Within a year this network will have presence in all the regions of the sultanate, Busaidy added. Food & Hospitality Oman 2014 I Market Report I 12

14 $1.3 billion for fisheries sector Source: Oman Daily Observer, 20 June 2013 Oman has adopted a comprehensive development strategy since the 1970s aimed at diversifying national revenues through developing other sectors including fish and agriculture sectors instead of depending on oil alone. "The Ministry of Agriculture and Fisheries has devised successive 5-year plans with the aim of sustaining and developing agricultural resources. Through its programmes and plans the agriculture and fisheries sectors managed to cater to onethird of the Sultanate s food needs during the past four years," said Dr Fuad bin Jaafar al Sajwani, Minister of Agriculture and Fisheries. Speaking at the 38th Conference of the Food and Agriculture Organization (FAO) of the United Nations (UN), Al Sajwani said that in the beginning of this year the ministry has allotted more than $ 1.3 billion for the development of the fisheries sector till 2020, and we expect this investment to increase the fish production by 200 per cent from aqua culture and natural fisheries. The Sultanate signed an agreement with FAO to prepare a strategy for sustainable development till Recently, Oman Fisheries Company (OFC) has unveiled plan for the next five years which includes construction of highquality factories and introducing a new fleet of fishing ships to increase the amount of catch and to achieve as the company plans to increase its sales by 15 per cent. The company has said that it is ready to meet the demand of the local market during the summer months. RO 50mn expansion of Muscat Grand Mall announced Source: Oman Daily Observer, 20 June 2013 Marking a milestone achievement in the retail and hospitality sector in Oman, Muscat Grand Mall announces plans for expansion of Muscat s popular retail destination, in a year from its inception. This expansion will be financed completely through an investment of over RO 50 million. The new development will see 100 new retail outlets being added to the mall, bringing new global brands to Oman for the first time, taking the total number of stores to 250. In addition, the growth plans include increasing the parking facilities by twofold, expanding and enriching the cinema experience and developing a compelling new retail and lifestyle destination in the Sultanate. A press conference was conducted to announce the expansion of Muscat Grand Mall and was presided by Abdul Rahman Barham, Board Member of Tilal Development Company, Harith al Brashdi, Chief Operating Officer, Al Madina Real Estate Company and Hassan Jaboub, General Manager of Muscat Grand Mall. Commenting on this groundbreaking expansion plan, Abdul Rahman Barham said It gives us great pride to announce that the second phase of Muscat Grand Food & Hospitality Oman 2014 I Market Report I 13

15 Mall which will give customers in Oman the opportunity to experience a retail destination of international standards. Using an investment of RO 50 million, major investments will be made towards raising the profile of the mall as well as developing a world-class shopping and entertainment destination for the people of Oman. He also added, As part of the Tilal Complex, the Muscat Grand Mall the first phase of the project has successfully completed with over 90 per cent of the retail and residential spaces already sold out. In addition, the expansion will offer increased employment opportunities for Omanis and will also be a mechanism through which we can support small and medium enterprises. At present, the retail outlets boast 25 per cent occupancy from SMEs and it is our endeavour to take this initiative further. We recognize that such developments also support the city s growth outlook of further reinforces its core economic sectors, including retail, tourism and hospitality. The Tilal Complex is the first of its kind mixed-use development. Muscat Grand Mall already boasts over 120 retail outlets already open, a flourishing commercial office space over 30,000 sq metres where the Nawras headquarters has a prime position, in addition to residential complex featuring 250 superior freehold apartments, complete with all modern amenities and hotel accommodation with four-star facilities and a rooftop garden. With the new international airport terminal construction in progress, a larger inflow of tourists is expected into the Sultanate. As projects such as the five-star hotel Shaza Hotel Muscat and the residential complex that is now underway, it is almost certain that the Tilal Complex will become a hub of activity. Home to an array of international brands which have secured their first presence in Oman, the largest food court, a threescreen cinema and more than 125 stores currently, it is no surprise that Muscat Grand Mall has become the lifestyle centre for residents in the Sultanate. Omran, affiliates to add 3,650 new hotel rooms in five years Source: Times of Oman, 19 June 2013 Oman Tourism Development Company (Omran), the investment arm of the government to develop tourism infrastructure, and its joint venture affiliates will add around 3,650 new hotel rooms in four and five-star categories in the next five to seven years. These projects, which include hotels coming up at Oman Convention and Exhibition Centre, Alila Jabal Akhdar Resort, Saraya Bandar Jissah, Muriya's hotels in Jebel Sifah and Salalah and Musandam Resort, are in different stages of planning, design and construction. New hotels, resorts "If you look at the convention centre, that alone will add 1,000 rooms, Muriya will add 1,500 rooms in Jebel Sifa and Salalah Beach, Saraya Bandar Jissah will add 350 rooms and Omran's other projects will add another 700 to 800 rooms as per the plan," said Eng Wael Al Lawati, chief executive officer of Omran. Briefing the media on the achievements of the company and future plans, he said studies are also going on to expand the existing hotels. Food & Hospitality Oman 2014 I Market Report I 14

16 "If you look at four and five star categories, we will be more than doubling the capacity in the country," he said, adding; "We will also be focusing on affordable hotels. We are also studying and designing entertainment projects." Omran recently opened such a facility at Musannah Beach Hotel. Cable car project The company is now working on a cable car project in Jebel Shams in an attempt to provide associated entertainment elements. Referring to the progress in building various hotels and tourism infrastructure projects, Eng Al Lawati said work on Alila Jabal Akhdar Resort in Al Jabal Al Akhhdar is 60 per cent complete now. "We hope to complete the work by the end of the year." Omran is building the 86- suite five-star Alila Jabal Akhdar Resort, which will be managed by the Singaporebased Alila Hotels and Resorts. Progress has already been achieved in building Saraya Bandar Jissah, an integrated tourism complex to come up in joint venture with Saraya Developments of Jordan. "The design of the first hotel is complete now and ready for tendering." Design work for the second hotel has also been approved by the relevant authorities and the company is scheduled to issue a construction tender. Covering 2.2 million square metres of land area including mountains, valleys and a curved beach front within a natural bay, the project will feature two luxury hotels, five residential zones, a recreational club, a park and retail outlets. The project did face some delays due to existence of historically important graveyards from the bronze age within the vicinity and appropriate measures were taken to preserve the area. Musandam Resort Also, work on building the main complex of Musandam Resort is progressing as per the schedule. The company is building a 110 room resort, which is scheduled for completion at the end of "Musandam Resort is for promoting domestic tourism. The rooms are designed to be large enough to accommodate Omani families," he further added. Oman plans 10 fishing ports Source: Times of Oman, 11 June 2013 Oman is planning to build 31 fishing ports or harbours by 2020, with a host of facilities to encourage fishermen and increase revenues. "By 2020, there will be 31 fishing ports in all. Each port will have land available for investors to set up their own projects. As of now, Oman has 21 ports. The construction of four new ports will begin soon, and six ports are in the design, tender, and other stages," Dr Hamed bin Said Al Oufi, Undersecretary (Fisheries Wealth) at the Ministry of Agriculture & Fisheries Wealth, told Times of Oman. Giving details about the ports, the undersecretary said, "We have recently signed up with contractors for the two ports of Taqah in Dhofar and Barka." The work at Taqah harbour, located less than two kilometres from Taqah town, bisecting the main Salalah-Mirbat carriageway, consists of the construction of a 150-metre-long Food & Hospitality Oman 2014 I Market Report I 15

17 concrete quay line, 1,783 metres of breakwater, reclamation work, construction of roads and pavements, dredging of the harbour basin to 5 metres depth, and construction of a marina facility and slipway. The Turkish construction conglomerate, Sezai Turkes-Feyzi Akkaya, has been assigned the construction work. The fishing harbour in the wilayat of Barka in South Al Batinah governorate is being built by Galfar Engineering and Contracting Company, while the ports at Liwa and Musannah have also been given to contractors. Dr. Hamed said that the construction work on these four ports will begin within two months. Hallaniyat Islands, formerly known as Quriya Muriya Islands, situated in Dhofar are expected to be opened next year after the Khareef season, said the undersecretary. Galfar Engineering and Contracting won the Hallaniyat contract to build marine infrastructure and handle related work. The contract, estimated at $100.4 million, will encompass the development of infrastructure and the construction of roads and other facilities. Ports serve as a catalyst for the development of a region. For a country like Oman, which is endowed with a long coastline, wellserviced small to medium fishing ports ensure balanced development along the coast. Therefore, Oman has taken a conscious decision that by the end of the current Five-Year Plan all the coastal towns will have their own fishing ports, noted Dr. Hamed. Freshplus opens first Oman store in Bausher Source: Muscat Daily, 11 June 2013 Mehdi Commercial Enterprises has opened the first in a chain of 'Freshplus' stores in Oman. The recent launch comes as part of steps to expand Emarat's trademarks in the GCC and other countries. Sadiq Mehdi Jawad al Lawati, managing director of Mehdi Commercial, said the opening of the first Freshplus store in Oman, at the BCC Building in Bausher, was carried out in accordance with an agreement entered into with Emarat, by which the Omani investor was granted franchise rights to the trademark, in addition to two trademarks that operate under the Freshplus umbrella. They include Cafe Arabicca, the first national trademark of its kind in UAE, known for its high-quality coffees and hot drinks, and Bakeria, one of the most established trademarks in the country and famous for its distinct service that provides light snacks, sandwiches, fresh bread and pastries and sweets, a release said. Lawati added that being granted the 'Freshplus' franchise in Oman, in addition to Bakeria and Cafe Arabicca, is considered a unique investment opportunity. "Investing in these trademarks has all the factors required for success. It is enough that they are under Emarat's name, this corporation that enjoys an experience of more than fifteen years in convenience stores in the UAE." Food & Hospitality Oman 2014 I Market Report I 16

18 He said that Emarat's franchise-rights agreements provide for logistic, technical and continuous training support that aim to enhance the investment's success. Emarat's support also includes operations and maintenance units, customer service techniques, product-order operations, price setting, administrative procedures and site-choice supervision. friendly comfortable atmosphere, and focuses on value, quality and unique service. Dr Rahma al Shamsi, retail sales manager at Emarat, welcomed the opening of Freshplus stores in Oman and expressed confidence that this is only the first step towards a wider expansion of the firm's trademarks outside UAE. Lawati added that the project will provide new job opportunities for Omanis, pointing out that he will soon be opening the second branch in the Beach One building in Qurm. 'Freshplus' enables customers to shop in a This expansion comes in line with the marketing plans set out by Emarat in cooper ation with a number of leading international companies specialised in the field of consultancy and development of franchise. $10bn tourism projects underway Source: Oman Daily Observer, 5 June 2013 With the advent of summer and the vacation season, tourist activities are on the rise in most of the governorates which boast of several natural attractions including plains, mountains and deserts especially with the approach of the Khareef season in Dhofar Governorate. The Ministry of Tourism is striving to improve the sector which is considered as a major contributory to the national economy by developing various tourism spots and attracting foreign investments. Omran, which is tasked by the government to develop the tourism sector and manages investment projects, is a major player in actualizing the government s target of transforming the tourism sector into a main contributor to the national economy and a provider of jobs for Omanis. Omran s current projects which cost $10 billion include some of the largest development projects such as Oman Conference and Exhibition Centre and the company s policy is to execute projects all across the Sultanate. Food & Hospitality Oman 2014 I Market Report I 17

19 The company has more than 20 project at different stages of implementation, these include residential and tourism projects as well as hotels and resorts in various governorates. Rotana Resort to expand sultanate's tourism offerings Source: Muscat Daily, 24 May 2013 The sultanate's Ministry of Tourism, Orascom Hotels and Developments and Rotana, the leading hotel management company in the Middle East and Africa, have announced that the new five-star Rotana Resort will soon join the growing list of premium hospitality destinations in Salalah. The development of the Salalah Rotana Resort is, according to a press release, in line with the ministry's strategy to strengthen Oman's reputation as a luxury hospitality haven and cater to a much broader global tourism market. Salalah Rotana Resort & Spa, owned by Orascom Hotels and Developments, offers 399 rooms and suites, and 45 villas that are built around ponds, water features and manmade lakes. The upscale hotel's Omani-inspired architecture features a series of clusters surrounding the main building, housing major public facilities and amenities. Maitha al Mahrouqi, undersecretary for the Ministry of Tourism, said, "The ministry has achieved significant progress and has even won international recognition for its efforts towards establishing Oman as one of the world's most popular year-round tourist destinations. The new five-star resort project in Salalah being managed by Rotana complements our strategy to sfurther expand the country's key tourism offerings, particularly within the luxury hospitality segment, which is one of our fastest-growing markets. Moreover, this partnership reflects the enthusiasm of international hospitality brands to invest in Oman and take advantage of the enormous potential of the country's tourism industry." Scheduled to be inaugurated in December 2013, Salalah Rotana Resort features a lobby cafe, all-day dining facility, a speciality restaurant, beach restaurant, pool, meeting rooms, a business centre, fitness centre, a huge outdoor pool, massage services, Zen the spa at Rotana, a beach club, and a kids' club. Selim el Zyr, president and chief executive officer of Rotana, said, "Oman has always been a key growth market for us and this is clearly reflected by our aggressive expansion plans in the country. Moreover, the five-star Salalah Rotana Resort plays an important role in our growth strategy for the Middle East market, where we will be launching several new properties throughout the year to increase the total number of rooms under our management to over 14,500 by the end of the year. The Ministry of Tourism has certainly done an excellent job in harnessing the tourism potential of Oman and promoting its key offerings in the global market." Food & Hospitality Oman 2014 I Market Report I 18

20 Master plan for tourism port unveiled Source: Times of Oman, 19 May 2013 In response to the directives of His Majesty Sultan Qaboos bin Said to convert Sultan Qaboos Port into a tourist port, Dr Ahmed bin Salim Al Futaisi, Minister of Transport and Communications, announced Sunday, the approval of the master plan for the development of the port for tourism and for the establishment of a specialised company that will act as a developer for the project. The master plan includes retaining a commercial terminal that will be dedicated to export and import services of certain goods and for emergencies. He said in a statement to ONA that the new layout includes eight main areas for tourism and services activities at the port. The main area will host the marine façade of the port, and the marinas for yachts, cruise ships, and boats. The existing terminals will be revamped for this purpose. He pointed out that the new plan includes building of new terminals for thirdgeneration cruise ships and passengers, and for shops and multi-purpose buildings designed to reflect Oman's marine heritage and history. The new layout includes hotels, yards, aisles, and recreational centres. He further added that the master plan includes the revamping of the current terminal and the construction of new terminals to simultaneously receive three cruise ships, each accommodating 11,000 passengers. Floating docks that accommodate 150 boats and yachts are also part of the master plan. "The master plan includes a yacht club, service centres, and marinas. The middle section of the terminal will be rehabilitated to serve as a marina for yachts and ferry boats and to receive wood ships, boats, and traditional and tourism boats. This includes a dock to receive the Shabab Oman vessel at the marine façade," he added. He further said, "Also a part of the new layout are a tourist hotel complex built according to the world class standards; commercial markets that reflect Oman's style of architecture; a centre for recreational activities; restaurants and coffee shops; a marine life exhibition centre; and multi-storey car parks." "The Royal Yacht Docks will also be rehabilitated, with the addition of new floating docks for yachts and marine fixed docks to absorb the existing and expected commercial fishing boats. Floating docks that accommodate more than 60 boats will also be built to handle and receive fish from the traditional fishing boats," said Al Futaisi. The minister said that the reclaiming of a commercial service dock was done for the purpose of importing cereals. The dock may be used in emergencies to export general cargo. The master plan includes the development of the coastal areas near the port and the western façade to connect it to a network of pedestrian paths that will be constructed on the marine façade from Bahari road till Riyam Park. Food & Hospitality Oman 2014 I Market Report I 19

21 Al Futaisi said that based on the importance accorded by the Sultanate's government to the port development projects, the recommendations included establishing a specialised company that operates as a developer for the port. This company may implement potential ventures with developers and third parties to invest in commercial and infrastructure projects. "Negotiations are on with experienced international companies in the field of tourism projects development at world tourism ports to strike a strategic partnership with one of them," he added. Al Futaisi hoped that a strategic partner could be selected before the design was detailed and tender documents were prepared, so that the Ministry's team alongside with teams from the Ministry of Tourism and other respective governmental agencies could supervise the proposed projects at the tourism port layout. He applauded the existing co-operation between the public and private sector establishments who worked side-by-side with the Ministry's teams through various workshops and meetings. They presented their remarks and opinions about the study from the beginning till final approval of the master plan for the first tourism port in the Sultanate. Al Futaisi confirmed that the Ministry is currently selecting a developer company and is preparing tenders for the third stage of detailed studies and inspections. He hoped that the development programmes could be completed early in "A specialised consultant is currently conducting a study on transferring commercial activities including container and general cargo handling to Sohar Port. The last date for receiving the container and general cargo terminal at Sultan Qaboos Port will be announced later on. Construction of Muscat Hills Phase 2 begins Source: Muscat Daily, 19 May 2013 Construction at the Muscat Hills phase two residential development has begun. The contract was awarded to Towell Construction. H H Rawy Kais al Said, Muscat Hills Golf Course Project, said With the commencement of construction of phase two, we are fulfilling the promise made by the family of delivering the last leg of residential development at Muscat Hills. This one-of-a-kind ITC project redefines the luxury living and its offerings are unique in many ways. Ivor Braganza, director, Muscat Hills Residences, said, Customers are seeing value in residing within a scenic golf course development, while living within minutes of the international airport and major retail outlets. Airport Heights has been witnessing major development activity lately, which will further enhance the potential of this ITC residential project. The development is being sold off-plan and initial purchaser interest has been strong, especially among Omani nationals. Phase 2 has been designed within the Muscat Hills golf course. Food & Hospitality Oman 2014 I Market Report I 20

22 It is the first 18-hole grass golf course in the sultanate of Oman a vision of the late H H Kais bin Tarik al Said. The development comprising of over 75 villas offers views of a course landscaped in and around a natural terrain with a spectacular back drop of the Al Hajar Mountains. The planned development offers buyers six different villa configurations to choose from, ranging from 350sq m to 650sq m in four and five bedroom arrangements, on plot sizes ranging from 300 sqm to 1700 sqm. The villas are being designed to offer spacious interiors, ample parking, lush landscaping and high quality finishes. Villas have a maid s quarters with external access. Muscat Hills is expected to have the InterContinental Hotel with a total of 250 rooms and four food and beverage outlets, a world renowned spa, swimming pool and a fitness centre. Sultanate s hotel revenue, occupancy show robust growth Source: Times of Oman, 15 May 2013 Revenue and occupancy of four and fivestar hotels in the country increased significantly in 2012, driven by Omani rather than foreign guests. The market is also characterised by a notable number of new developments, according to a report on hospitality industry released by Cluttons yesterday. Cluttons predicts that such projects are set to double the supply of three- to five-star hotel rooms in the Muscat Governorate over the next five years. Recently released government figures show that occupancy for five-star hotels across the Sultanate increased from 47.9 per cent in 2011 to 54.5 per cent in 2012, while four-star hotels showed an increase from 52.4 per cent to 54.2 per cent. Data released by the hospitality consultancy, STR Global, shows that average annual occupancy for higher rated Muscat hotels increased by 14.3 per cent to 59.6 per cent in The government figures indicate that the green shoots of recovery being seen in the four- and five-star hotel sector are generally being driven by Omani rather than foreign guests. The number of Omani guests has increased by 70 per cent from 2009 to 2012, while the number of Gulf Cooperation Council (GCC) and European guests, despite showing signs of improvement, remains below those for Meanwhile, occupancy rates remain significantly below 2008 national averages of 68.1 per cent for five star hotels and 66.5 per cent for four star hotels. Four and five star hotel revenues have shown a 12.5 per cent (OMR15 million) increase in 2012 in comparison to 2011, but average revenue per guest remains at the same level seen in New hotels Cluttons' research shows a significant number of new hotels in the planning or development stage in the Muscat capital area. The five-star Kempinski Hotel under development at The Wave by the Omani Hospitality Company, scheduled to be completed during the first half of Food & Hospitality Oman 2014 I Market Report I 21