INVESTMENT

POTENTIALS

TOURISM SECTOR

October 2014

His Majesty Sultan Qaboos receives Mr. Shinzo Abe, Prime Minister of Japan,

at Bait Al Barakah 9th of January 2014

… The tourism industry is well qualified to offer career opportunities to Omanis. It is well capable of serving the aims of regional development, since its benefits will cover all regions. On this basis, we should prepare a new strategy to develop this sector so it can stand on its own feet in a severely competitive, flexible and diversified international market.” Excerpted from the speech of His Majesty Sultan Qaboos bin Said on the occasion of the 38th National Day

STRATEGY

OPPORTUNITIES

INTRODUCTION

• Tourism Industry in Oman

• Oman Development Strategy 1996 - 2020

• Travel & Tourism Statistics & Indicators 2007 - 2012

• Investment Opportunities

• On-going Projects

• Main Objectives of Oman National Tourism Strategy

• Advantages of Investing in Oman

• Incentives Granted for the Development of the Tourism Sector

Tourism Industry in Oman

• Substantial growth during the past (4) decades • Value added during the period 2001-2010 rose from 145 million to

about 287.5 million Dollar (annual avg. real growth rate of about 7%) • Number of tourists reached 2.2 millions based on 2013 records • Omani Tourism sector is expected to realize a growth rate of 7.8%

during the coming decade

Oman Development Strategy 1996 - 2020

Within the framework of such vision, Oman’s economy will be able to shift from a…

Government Initiative and Spending Private Initiatives

Oil Resources Renewable Resources

Expatriate Labor National Labor

… that lead to achievement of sustainable development, and an improvement in the living standard of the Omani citizens.

Travel & Tourism Statistics & Indicators

The Travel & Tourism Competitiveness Report, issued by “The World Economic Forum”, provides a platform for multi-stakeholder dialogue to

ensure the development of strong and sustainable T&T industries capable of contributing effectively to international economic development.

2008 Report 2013-2014 Report

Main Objectives of Oman National Tourism Strategy

• Establishing a highly attractive international tourist destination • Developing a broad spectrum of tourist products • Intensifying the marketing and promotion of the Sultanate • Building national capacities and capabilities

Advantages of Investing in Oman

• Political System Stability • Tourist attractions • Comprehensive & strong economic policies • Supportive Laws • Infrastructure facilities • Low tax on profits and no personal income tax • Ownership opportunities

Incentives Granted for the Development of the Tourism Sector

• A study to contribute to the necessary infrastructure for tourism projects.

• Exemption from income taxes for five years from the date of operating the project.

• The estimated annual rental value of lands is $ 0.78 per square meter in Muscat Governorate and the Wilayat of Salalah, and $ 0.39 per square meter in the remaining Governorates, Regions and in the Wilayat of Qurayat.

• Usufruct of the land of tourism for (50) years • Exemption from the rental value of (5) years

• Rental value is estimates based on project's land area

Incentives Granted for the Development of the Tourism Sector

• A study to contribute to infrastructure development, if needed

• Exemption from income taxes for five years

• Low annual rental value for land ($0.39 – $0.78 per square meter)

• Signing an agreement to define the obligations and responsibilities of each party.

• Granting an owner visa to the owners of real estate units

Investment Opportunities • Hospitality & Development Projects Hotels, Resorts, Camps, … Infrastructure, Tourism services, … Yachting ports and marinas, … • Other fields support Tourism sector Travel agencies Transportation Logistic Handicraft & heritage products …

On-going Projects

Ministry of Tourism – Al-Khuwair - Muscat, Sultanate of Oman P.O. Box 200, P. C. 115 info@omantourism.gov.om Call Centre: +968 80077799 Phone: +968 22088000