Oman's star hotels saw occupancy rates decline to 65.3 per cent during the first quarter of the year, down from 66.9 per cent recorded in Q1 2015.

Despite the 8 per cent year-on-year rise in guest numbers during Q1 (360,080 guests), the increase in Oman’s hotel stock resulted in a marginal drop in occupancy rates.

Q1 witnessed the completion of the 179-key Radisson Blu Hotel Sohar, Rezidor’s fifth operational hotel on the territory of the country, as well as the 277-key Somerset Panorama Muscat Hotel Apartments marking the debut of Somerset brand in Oman. The completion of another two highly anticipated hotel properties, namely the 115-key Anantara Al Jabal Al Akhdar Resort in July 2016 and the 136-key Al Baleed Resort – Salalah by Anantara in September 2016, is likely to exert further downward pressure on occupancy rates

Based on recent market announcements, notable projects that were launched during the first quarter included the 152-key Centara Muscat Hotel and the 232-key Hilton Garden Inn Muscat – Al Khuwair, Hilton’s first hotel in the capital. The two properties are slated for completion in Q4 2016 and early 2019 respectively.
Furthermore, during Q1 Oman Tourism Development Company signed a deal worth OMR40 million ($103.6 million) with Bank Sohar for the financing of JW Marriott Hotel in Muscat, which will be located within the upcoming Oman Convention and Exhibition Centre. The five-star property, which is expected to be completed in 2017, will feature a total of 304 keys, Mice facilities, a number of food and beverage outlets as well as a health club.

Oman continues to invest heavily in the country’s aviation industry as part of the government’s strategy to diversify its economy away from its reliance on oil and give a further impetus to the tourism and hospitality industry. The new terminal at Muscat International Airport is slated for completion in early 2017, while construction works on the passenger terminals at Sohar and Ras Al Hadd airports are expected to commence in 2016 and 2017 respectively. In addition, Duqm Airport is currently undergoing an expansion with the contractor currently developing the last Phase III of the airport’s project, which is slated for completion in early 2018. To fuel further economic growth within the aviation industry, in January 2016 a new low-cost airline, named ‘Salam Air’, was granted an operating license. Oman’s first budget airline is expected to commence services in early 2017 as per an agreement with Oman’s aviation authorities.

In Q1 2016, airport arrivals at Muscat International Airport and Salalah International Airport totalled 1,478,636 and 128,017 passengers, reflecting year-on-year increases of 21.1 per cent and 21.3 per cent respectively. - TradeArabia News Service