Saturday, 19 Oct 2019 | 20 Safar 1441
Hotels in Muscat to see rise in their valuations by 22%

Hotels in Muscat to see rise in their valuations by 22%

A new HVS report mentioned that hotels in Muscat will improve in worth by almost 22 per cent by 2022, largely erasing the loss of worth of hotel investments witnessed more than the period 2015-18.

With oil cost falls and a subsequent loss of self-confidence in the Omani economy in 2015-18, the worth per crucial – the regular market metric for valuing hotels – lost 31 per cent in worth among 2015 and 2018 to be RO41,300 (US$107,000) in 2018.However, the most recent HVS assessment points to a rise in the hotel valuation index of 21.9 per cent more than the period 2019-22.

The good outlook for Muscat is second only to Doha – which also suffered a downturn in values of 35 per cent in 2015-18 – in the 14 regional cities deemed by HVS. This encouraging viewpoint comes as there is growing discussion in Oman of methods in which the hospitality market, and tourism much more typically, can develop.Mac Thomson, chief executive officer of hotel and asset management group, Midan Muscat International Services, mentioned, “The report from HVS is a reminder for the hotel and hospitality sector that most trends in the market are cyclical.

“The downturn in the market over the past few years was a result of many factors out of the industry’s control. Now, it is time for the private sector to play its part in promoting Oman more as a very attractive leisure destination and providing the accommodation and experiences that local and international visitors are seeking. Hotel operators need to look at the growing tourism markets such as China and India, and understand what will encourage tourists from there to visit Oman.”

Thomson mentioned that the quantity of Chinese vacationers travelling to the GCC is anticipated to improve 81 per cent from 1.6mn in 2018 to two.9mn in 2022. “This represents less than six per cent of the Chinese international tourists and less than four per cent of the Chinese population having passports. So there remains a massive market potential, as long as local operators take efforts to encourage this market to visit Oman.”

Another matter that is getting addressed is the lack of mid-variety accommodation inside Muscat. “Tourists want inexpensive hotel rooms that have international requirements. With almost half of the present hotel keys getting in the 4- and 5-star category, it is time the hospitality sector moved its concentrate away from the best-finish hotels to affordable accommodation favoured by much more price range-conscious guests.

“Oman gives an extraordinary mix of cultural and all-natural atmosphere experiences to which we ought to be adding the well being and wellness and adventure tourism experiences that have proved so desirable elsewhere in the planet.

“His Majesty the Sultan’s government and the Ministry of Tourism have made an admirable commitment to the sector as part of the 25-year National Tourism Strategy with major investments in airline and airport infrastructure and easing of visa requirements.”

Information Source: Muscat Daily

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