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Tourism projects eye 88% private funding
By Samuel Kutty — MUSCAT: Jan 16 – The private sector is to have majority stake in projects envisaged under Tourism Strategy 2040. The government requires RO 18.936 billion for implementing projects identified in the tourism strategy. “Of this, 88 per cent is expected to be chipped in by the private sector,” Ahmed bin Nasser al Mehrzi, Minister of Tourism, said in an interview. The ministry is keen to promote private partnership and encourage local investors to establish private companies. These will get priority in the implementation process, said the minister. Meanwhile, Integrated Tourism Complex (ITC) projects hold the key to Oman’s drive in expanding its hotel accommodation facilities.
While Dhofar is seen increasing its share of hotel rooms from the present 12.6 per cent to 23.8 per cent, Muscat’s share is expected to witness a fall from 53 per cent to 30.8 per cent by 2040. The government is aiming for a total of 33,373 hotel rooms, 29,287 holiday home rooms and 17,262 rooms in ITCs as part of its Tourism Strategy 2040. While there are six ITC projects in the Sultanate, the Salalah Beach Project is set to be one of the largest spreading across 15.6 million square metres. The strategy focuses mainly on Dhofar, Al Dhakhiliyah, Musandam, Ras Al Hadd and Muscat. A contract has been signed with a consultancy company to prepare a detailed study for Dhofar, said Al Mehrzi, in the interview to Aqar magazine. “The study, expected to be completed in six months, will help us in marketing our projects as it will include integrated action plans,” he said.
Several projects involving local investors are being implemented in these regions. The Oman Investment Fund is also implementing some projects to develop tourism infrastructure in these regions. The ministry has simplified procedures for investors and is now providing more than 90 per cent of its services online. More services would be provided electronically. The ministry has already launched an e-portal for processing all applications and permits to save investors’ time and effort, the minister said. “The Omani government provides investors with many incentives, including a flexible taxation system. Investors are also granted land usufruct agreements that allow them to utilise land for 50 years,” he said. The ministry expects at least 11.7 million international and domestic tourists in 2040, a big jump from 1.4 million a year ago.
I found it interesting that they were more interested in their infastructure than toourism projects.
The State Council on Wednesday approved an eight-month study on the tourism sector in Oman, which will now be sent to the Council of Ministers.
The study titled, ‘The Reality of Tourism in the Sultanate Through its Laws and Legislation’ is over 50 pages long and offers recommendations on what can be improved in the sector.
The report was compiled by the council’s Culture, Media and Tourism Committee.
Council members discussed the report for several hours before approving it.
A separate committee has been formed to include these suggestions before it is sent to the Council of Ministers.
The study complements the Ministry of Tourism’s own 2040 strategy as well as initiatives in the tourism sector proposed by Tanfeedh.
Committee members said they referred to broad aspects of the ministry’s strategy in forming their report, but were not able to look in detail because it is still not officially approved.
Discussions on Wednesday focused on areas such as Omanisation rate in the tourism sector, contribution to GDP, and infrastructure.
Members focused on the need for laws to be revised.
One member pointed out that although the number of tourists arriving in Oman has been rising, the contribution to GDP was not. He called for a greater understanding on why tourism is not contributing more to income.
Some members spoke of the need to quicken processes in constructing tourism projects. However, attention should be paid to environmental considerations.
The Culture, Media and Tourism Committee is headed by Abdullah al Sibani and the rapporteur is Sheikh Abdullah al Hosni.
In other news, State Council office member Musallam al Mash’any was elected the new vice president of the Arab Parliament.
Read more: http://www.muscatdaily.com/Archive/Oman/State-Council-approves-study-to-promote-tourism-sector-in-Oman-4wnv#ixzz4ULRrPncP
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Warrants have been extended until Dec 31, 2017 as per 8k on SEC website. Merry Christmas to all.
Look at the good side, with 20% capital gain and to make money this year would over tax some of us. We don't want to be taxed more than we have to. Olso with tax reform next year, maybe the capital gain will go back to 15%. With Obamacare, I believe That extra 5% was a hidden tax, plus another was a 3% tax on homes sold beginning I believe last year.