Omran's 2nd Sustainability Report

CREATING A SUSTAINABLE TOURISM DESTINATION

2nd Sustainability Report

Table of

Contents This Year‘s Report

5 About Omran

Our Economic Impact

29

13 Our Social Impact

39 Our Environmental Impact

Our Cultural Heritage

51

65 Appendices

75

2nd Sustainability Report | 4 - 5

This Year‘s Report

Section 1

Sustainability management makes good business sense, and is becoming increasingly important for Omran.

Taking a closer look at Oman’s natural assets.

2nd Sustainability Report | 6 - 7

Be it young or old Omanis, our objective is to tap their skills, experience and aspirations to create a happier, more secure Oman.

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About this Report

This is Omran’s second Sustainability Report.

More than communications, sustainability reporting

It covers performance on material issues relevant

is an exercise in accountability to our stakeholders.

to our main stakeholders for the four years leading

We invite all our readers to provide their feedback

up to 2013. The report is written in accordance with

to us so that we can continue to be Oman’s most

the Global Reporting Initiative (GRI) G3.1 guidelines

transparent developer.

for sustainability reporting, the leading standard used by two-thirds of the world’s sustainability reporters.i

Contact Information

Our report is self-declared Level B and has received

For questions and feedback on this report as well

an independent GRI level check (page 92).

as general information on sustainability programs at Omran, please contact our sustainability team

The 2013 report has more information than ever on our

at info@omran.om

developments and hospitality assets. These indicators and qualitative disclosures give a more holistic overview of the environmental, social and economic impacts at Omran. They send a strong signal that our company is serious about taking ownership over the full extent of our operations.

2013 At a Glance

134

SMEs supported

1,028 Available rooms

32%

Domestic occupancy

82mn

OMR awarded in OCEC tenders

72% Omanization

0 0 Injuries

Fatalities

-27%

Reduction in GHG emissions Cautionary Statement This report contains certain “forward-looking statements” that express the way in which Omran intends to conduct its activities. Many of these statements are based on the plans and assessments of our executive management team, which are meant to add value to the report by giving our stakeholders a better overview of our collective impact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify forward-looking statements. Although we make efforts to ensure the report is as accurate and truthful as possible, such statements are based on assumptions made using currently available information that is subject to a range of uncertainties that could cause actual results to differ materially from these projected or implied statements. The forward-looking statements contained in the following pages are therefore not promises or guarantees of future conduct or policy, and Omran assumes no obligation to publicly update any statements made in this sustainability report.

9

LEED projects

Omran makes a point of trying to help Small & Medium-Sized Enterprises (SMEs) through financial contributions, mentorship, and responsible procurement practices.

In 2013, we supported 235% more SMEs than 2012. Read more about our different strategies for helping entrepreneurs on pages 35 and 37.

Omran has come a long way in just a few years with regard to hospitality asset management. We are significantly increasing our hotel capacity (26% growth in available rooms in 2013) and welcoming more guests all over Oman (399 per day in 2013). Learn about our hospitality assets on pages 18 and 80.

Omran builds tourism infrastructure for foreign and Omani travellers alike. Omran’s domestic occupancy rate is up significantly from historical rates (11% in 2010), indicating Omanis are becoming increasingly avid participants of their own tourism economy. More on page 35.

The Oman Convention and Exhibition Centre (OCEC) is Omran’s biggest development, slated to bring in 200-240 million Omani Riyals to the national economy by 2030. Discover the full economic impact of this flagship project on page 36.

Omran believes that the tourism economy can be a major driver of national employment. In 2013, we employed 86 Omanis at our head office, 353 at our Hospitality Assets, and 126 at our developments. Read more about our approach to human capital development on page 44.

With more than 9.3 million man-hours logged across our developments, we managed to avoid having a single lost-time incident in 2013. We believe that being honest and transparent about our Health & Safety performance is integral to success, and we encourage you read about our practices on page 45.

Omran reduced its office greenhouse gases (GHG) generated by 27% in 2013. To show that we are serious about the environment, we have taken the bold step of tracking and reporting on the environmental performance of our hotel assets. Learn about our environmental performance on page 51.

Omran is the first company in the Sultanate to have gained membership of the U.S. Green Building Council. Nine of our developments are pursuing the coveted LEED certification—the most trusted global standard for green building.

More on page 55.

2nd Sustainability Report | 10 - 11

CEO’s Message

“

Tourism is expanding at a rapid pace in Oman. Recent government figures indicate that the number of inbound tourists grew by 50% compared to 2012.ii Growth projections for Travel and Tourism (T&T) look equally promising: the World Travel and Tourism Commission (WTTC) estimates that the sector will contribute a total of 3.7 billion OMR to the Sultanate in 2023.iii With such positive outlooks, the need for robust tourism infrastructure is clearer now than ever.

Eng. Wael Al Lawati CEO

”

The sustainable development goals outlined in

Omran has had some big successes in 2013. Major

the Oman Economic Vision 2020 emphasize the

projects such as the Oman Convention and Exhibition

importance of economic diversification and human

Center are on schedule, and several developments

capital development. Through our efforts to catalyse

such as the Alila Jabal Akhdar resort and Atana

growth within Oman’s tourism sector, Omran

Musandam resort slated to open in Q2 2014. Studies

continues to make a strong contribution to the

are showing that our properties will bring in millions

Sultanate’s vision for sustainable development. Since

of Omani riyals to the economy. We are proud to

its establishment in 2005, Omran has developed and

have completed nearly 10 million man hours without

managed—independently and jointly— a portfolio of 23

a single lost time injury. And on the environmental

different assets. Though these impacts are impressive

front, nine developments are pursuing LEED green

in their own right, it is the indirect factors that make

building certifications. We have also reduced per

tourism’s contribution truly remarkable. Whereas

capita waste, energy, and greenhouse gas emissions.

the tourism and travel sector’s direct economic share of Gross Domestic Product (GDP) stood at 3.0% in

Our mandate to build tourism infrastructure, though

2013, the full contribution was closer to 6.4% when

no small task is one that will bring invaluable growth

considering the multiplier effect of tourism.iv These

to our economy. As we near our ten year anniversary,

figures demonstrate the many indirect benefits of

we celebrate our successes and continue to look to new

public spending in tourism infrastructure.

opportunities to contribute to the national economy.

Sustainability will continue to guide our focus and actions,

Sustainability management makes good business

putting us squarely on the path to long term success

sense, and has started becoming increasingly important

for Omran and the Sultanate of Oman.

for Omran. A study by the Harvard Business School finds that companies that embrace it “significantly outperform their counterparts over the long—term, both in terms of stock market as well as accounting performance.” v Strengthening our sustainability management practices is therefore vital to long term success. On this front, the 2013 Omran sustainability report has made important new advances. First, we have expanded our scope with the inclusion of 25 fully reported GRI performance indicators. We also continue to use the Global Reporting Initiative 3.1 standard to guide our reporting, but have started transitioning to reporting on the basis of topics identified as important to our stakeholders. And finally, the boundary of reporting is wider this year, with key indicators on our hospitality assets. By showing this leadership in sustainability reporting, our aim is to continue to be the most transparent developer in Oman.

2nd Sustainability Report | 12 - 13

About Omran

Section 2

As a government investment arm for the Sultanate’s tourism industry, Omran develops, invests in, and manages tourism assets.

By combining human and natural resources, we create distinctive and sustainable destinations.

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Our approach to sustainability takes into account the economic, social and environmental factors while promoting Omani heritage in the industry.

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Our Company

The Oman Tourism Development Company (Omran)

As a government investment arm for the Sultanate’s

Headquarters

was established by the Government of Oman as part

tourism industry, Omran develops, invests in, and

Al Khuwair

of a wider vision to diversify the economy. Oman Vision

manages tourism assets. A central part of our remit

Building number 3203

2020 outlines the vision for the Sultanate’s economic

is to develop new tourism destinations in the country

Way number 3341

and social development and emphasizes economic

and stimulate private sector investment in tourism

Phone: +968 24 391111

diversification and human capital development as top

destinations. With projects from Musandam to

Fax: +968 24 391112

priorities for the next decade. Omran exists to support

Dhofar, our company operates exclusively in the

Email: info@omran.om

the Sultanate’s economic and social development by

Sultanate and is proud to contribute to Oman’s

Post P.O.Box 991, P.C.130, Al Athaiba.

catalyzing growth within the tourism sector.

national development.

Website: www.omran.om

2nd Sustainability Report | 18 - 19

Omran’s Activities

Sustainable Tourism in Oman

Omran operations are classified in three general categories:

Khasab

21 9 20

Investments:

Dibba

Omran supports tourism by dedicating resources

Our country is quickly being positioned as one of the

Sustainability Framework

to investment opportunities that enhance the private

most attractive destinations in the Middle East. The

Our approach to sustainability takes into account

LonelyPlanet guide recently ranked Oman as the No. 2

the economic, social, environmental factors while

tourism destination globally, and Muscat was named

promoting Omani heritage in the industry.

sector’s role in the sector’s development. By seeking

Sea of Oman

out joint ventures, we stretch the potential of our

Sohar

resources while simultaneously creating an enterprising

as Arab Tourism capital in 2012. United Nations World

and participatory market. Omran currently has 15

a portfolio of 6 investments that include stand-alone

Mussanah

projects as well as larger Integrated Tourism Complexes (ITCs).

Muscat

14 11 6 7 10 1

8

tourists visiting the Middle East to more than double,vi

Al Sifah Quriyat

12

Nizwa

Developments:

Tourism Organization (UNWTO) estimates project

Sur

18

Omran supports tourism by planning and building new

Uwaifiya

projects across the Sultanate. As a government-owned

Ras Al Jinz

the outlook for the industry is extremely positive.

In such times of expansion and change for the industry, it is important for sector participants to take growth and development. Omran’s development strategy is rooted in the conviction that development

of strategic interest and capitalize on its size to

should generate wealth for Omanis, preserve the

Society Responsible Tourism in Oman

a deliberate, long-term perspective towards industry

entity, Omran is in a position to build assets undertake large projects. As of 2013, Omran had 7

Economic

natural assets for our children, and strengthen our Sultanate of

Oman

developments underway.

cultural identity. Omran’s sustainability framework is a visual representation of these goals.

Hospitality Assets:

Environment

Cultural Heritage

19

Masira Island

Omran supports tourism by managing its own set of hotels, resorts, and tourism destinations. Whilst a

17 5 16

few assets are managed by Omran on behalf of others, Omran has begun running properties of its own and

Duqm

developing its own brand of hospitality. By showing leadership in responsible tourism and championing Omani hospitality across 8 hotels and resorts, Omran

Investments

Developments

Hospitality Asset Management

is setting a standard for others in the Sultanate.

1. Jebel Sifah

7. Oman Convention & Exhibition Centre

14. Intercontinental Muscat

2. Salalah Beach

8. Alila Jabal Akhdar Resort

15. Millennium Resort Mussanah

3. As Sodah Island

9. Atana Musandam Resort

16. Crowne Plaza Duqm

4. Al Baleed Resort

10. Fort Hotel

17. Duqm City Hotel

5. Duqm Frontier Town

11. W Hotel

18. Ras Al Jinz Scientific Centre

6. Saraya Bandar Jissah

12. Quriyat Sur Rest Area

19. Masira Island Resort

13. Al Baleed Restaurant

20. Golden Tulip Dibba Resort

3 2 13 4

Salalah

21. Atana Khasab Resort 1 As the Ras Al Jinz Scientific Centre is not owned by Omran and is governed by a different management agreement, it falls outside of the boundary of this report.

It is not included in aggregate figures for Hospitality Assets.

2nd Sustainability Report | 20 - 21

Our Values

Know-how: Omran believes in know-how, which is built from the spirit of being an Omani company and the knowledge this gives us. We understand the people, government, heritage and environment, knowing how to get the most out of everything and everyone we work with.

Our Stakeholders

As a company with a remit to develop public-benefit infrastructure projects, the impact that we have on communities is paramount to the way we do business.

We engage with local communities either through specific initiatives to be implemented in the region

Respect: Omran believes in Respect, which is built from the respectful spirit that is inherent in the Omani people. We respect not just our own people but also the communities in which we work. While we support Oman’s goal to have tourism as a key economic driver, we also endeavor to preserve traditional Omani skills, crafts, and a lifestyles.

where our project is located, or through general initiatives that touch a wide range of benefits for community members. Our sustainability strategy, Corporate Social Responsibility (CSR) programs, and public relations are a further step towards closer

Beyond: Omran believes in beyond, which comes from our passion for the future, which is shared by many young Omanis. We exist to push the boundaries of what is expected and what can be achieved. We develop communities, people and skills, and we do it all to help develop a new and better Oman.

Our Commitments

In 2012, we committed ourselves to four key objectives:

1. All future Omran major developments will be LEED certified.

2. All future Omran properties will ensure domestic tourism is promoted.

3. A ll future Omran properties will have interiors that are the ‘modern expression of Omani architecture’ and will be decorated with art from Omani artists.

4. O mran developments will include environmental stewardship initiatives that increase awareness and good housekeeping on-site during construction.

communication and engagement with communities about our projects, activities, and plans.

2nd Sustainability Report | 22 - 23

Materiality at Omran

CHAIRMAN OF BOARD

CHIEF INTERNAL EDITOR

BOARD ADVISOR

HC COMMITTEE

CEO

In order to create a more focused sustainability program, Omran conducts a yearly review of issues that are of concern to the company and interested parties. By writing a publication that focuses on topics that matter to stakeholders and have the greatest impact on our operations, we strengthen our credibility and social license to operate.

AUDIT COMMITTEE

The outcome of the 2013 assessment draws attention to indirect economic impacts, local communities, and employee

TENDER COMMITTEE

satisfaction as top priorities for Omran. Accordingly, we dedicate a considerable amount of time describing the full range of impacts for these focus areas in this report.

For the full Materiality Matrix see Appendix D

Omran’s Top 15 priorities:

Governance Omran is 100% owned by the Government of Oman. The

Quality Management, ISO14001 for Environmental

Oman Ministry of Finance acts as the official shareholder

Management, and OHSAS18001 for Occupational Health

for governance and operational activities.

and Safety. In addition, our assets are pursuing LEED

Topic / Aspect

More Information

1

Indirect Economic Impacts

See Indirect Economic Impact on page 35

are in place between different entities such as the Chief

The organization does not subscribe to or endorse any

2

Employee Satisfaction

See Our Workforce on page 43

Internal Auditor, HC Committee and Audit Committee.

externally developed economic, environmental, and

Local Communities

See Spending Local on page 35 and Community Investment and Sponsorship on page 46

Pending a review of Omran’s mission and direction by

social charters, principles, or other initiatives. Omran

the board, the organizational structure is slated to be

does, however, have memberships in associations

updated in Q1 2014 to align with the upcoming changes.

where this is seen as strategic:

3

certifications for green building performance.

Omran’s structure ensures robust checks and balances

4

Preservation of Heritage

See Our Cultural Heritage page 68

5

Employment

See Our Workforce on page 43

6

Procurement Practices

See Spending Local on page 35

7

Occupational Health and Safety

See Contractor Relations on page 46

8

Products and Services

See About Omran on page 13

and business management standards. We have achieved

9

Constructing LEED Certified Buildings

See LEED Building at Omran on page 55

several voluntary certifications, including ISO9001 for

10

Overall Environmental Spending

Omran plans to report on this in 2014

11

Materials

Reported to a limited extent on page 57

The Integrated Management System

Demonstrating the company’s systematic and

Omran has been awarded with internationally

process-driven approach to quality performance,

acclaimed certifications after passing its second

product delivery and service consistency, the IMS will

Integrated Management System (IMS) Audit conducted

meet the needs of stakeholders, manage employees’

by Germany’s TÜV SÜD, a global provider of testing

needs, monitor risks and hazards, reduce inefficiencies

and certification services. By effectively integrating

and maximize resources. Omran proved it has robust

three previously certified systems under one integrated

checks and balances in place ensuring that all

platform, Omran’s IMS achieved ISO 9001:2008 for

decisions are based on recorded data, potential

Quality Management System, ISO 14001:2004 for

problems are identified and corrected, and the end

Environmental Management System and OHSAS

product always meets the required standard.

12

Corporate Communications

Omran plans to report on this in 2014

13

Corporate Governance

See Governance on page 23

14

Energy

See Energy Consumption on page 59

15

Anti-corruption

See Ethical Conduct and Anti-Corruption on page 26

* Page 43 provides more exhaustive details on Omran’s materiality assessment. ** The GRI logo above indicates that a topic is a prescribed aspect of the new G4 voluntary guidelines. Although the 2013 report uses 3.1 guidelines, Omran is already in the process of transitioning to the new standard.

Our senior management and legal teams are responsible

1. Oman Society of Engineers

for ensuring that Omran is in full compliance with Omani

2. Oman Society of Contractors

laws. Our governance philosophy is to set an example

3. Oman Real Estate Association

of best practice in Oman by exceeding basic governance

18001:2007 for Occupational Health and Safety Management System.

4. Oman Green Building Association 5. Oman Chamber of Commerce and Industry

2nd Sustainability Report | 24 - 25

Board of Directors

Executive Management Team

Omran’s highest governing body is made up of seven members who review performance and provide direction to the company. These individuals are appointed by the Cabinet of Ministers. Other than receiving a sitting fee for each meeting attended, directors are not compensated for their work and have no personal financial interests in the company. Directors and employees are required to comply with our Code of Conduct, which outlines the ethical standards and expectations to exercise good judgment. Employees can provide recommendations or direction to the highest governance body through their line managers. As of December 31st, 2013, the Board of Directors was made up of seven members:

Day-to-day operations are managed by an executive team of six individuals. Compensation for these executives is tied to economic performance and scorecard achievement, which includes economic, environmental, and social indicators.

As of December 31st, 2013, senior management was made up of the following individuals:

The composition of the Board of Directors changed on June 1st, 2014, for a list of current Directors, please visit: www.omran.om

H.E. Nasser Bin Khamis Al Jashmi Chairman

Mr. Hassan Bin Mohammed Al-Lawati Deputy Chairman

Undersecretary of Ministry of Finance

DG of Archaeology & Museums; Ministry

Eng. Wael Bin Ahmed Al Lawati Chief Executive Officer (CEO)

Ms. Lubna Al Kharusi Chief Financial Officer (CFO)

Eng. Nasser Al Maqbali Chief Operations Officer (COO)

Eng. Said Al Qasmi Chief Project Officer, Oman Convention & Exhibition Centre

Eng. Abdul Wahid Al Farsi Vice President, External Affairs

Eng. Ali Al Rasbi Vice President, Corporate Support

of Heritage & Culture

Mr. Khalid Bin Saeed Al-Shuaibi Member DG of Organization and Commercial

Sk. Sultan Bin Mohammed Al-Mahrouqi Member

Relations; Ministry of Commerce

DG of Administrative & Financial Affairs;

& Industry

Ministry of Finance

Eng. Abdul Qawi Bin Abdullah AlYafai Member

Mr. Harib Bin Abdullah Al-Kitani Member

DG of Town Planning & Survey; Ministry of Housing

CEO of Oman LNG Co.

Eng. Khalid Bin Hilal Al-Yahmadi Member Private Business

2nd Sustainability Report | 26 - 27

Ethical Conduct and Anti-Corruption

“

Managers are expected to exemplify the highest standards of ethical business behaviour and conduct creating a work environment that promotes honest and ethical behavior

Anti-Competitive Behavior

Excerpt from Omran’s Code of Business Conduct

and to consider the full range of economic multiplier

”

Omran complies with all laws concerning anti-competitive behavior. Our position as a government-owned company allows us to go beyond simple calculations of financial returns, effects that future projects will have for Omani society.

Business ethics continue to be a material concern

The development of assets in Duqm and the creation

for all companies in Oman. In line with a national

of the OCEC are prime examples of undertakings

directive to combat corruption and serious fraud,

that will generate significant indirect economic

Omran developed a set of internal policies and

benefits, while not immediately generating direct

measures, including various types of audits that are

economic returns. As such, Omran’s role is to catalyze

conducted throughout the year. All employees and

development by undertaking projects that break

board members must sign declarations yearly that

new ground and, on the basis of risk and immediate

they have read and understood the company’s code

economic returns, may not be executed by

of business conduct. This ensures collective

other developers.

responsibility and accountability to the people of Omran. Thanks to these proactive measures, Omran has not faced any issues of corruption in the past five years.

Awards and Accolades

Millennium Resort Mussanah Trip Advisor Certificate of Excellence Crowne Plaza Duqm Sewage Treatment Plant Construction Week Awards Sustainability Initiative of the Year Crowne Plaza Duqm Sewage Treatment Plant MEED Quality Awards Water and Water Reuse Project Omran Website Oman Web Awards Silver Alila Jabal Akhdar Resort Dossier Construction Awards and Summit Best Project Design Salma’s Chocolate PR Ragan Awards Employee Communication Awards Masira Island Resort Trip Advisor Recommendation Team Leader of Zaree Iman Al Salti Travelex Oman Tourism Ambassador Awards Best Tourism Ambassador for Al Batinah and Musandam Zaree Asia’s CSR Best Practice Award Women Empowerment Award Zaree Al Roya Youth Awards Entrepreneurship Award

2nd Sustainability Report | 28 - 29

Our Economic Impact

Section 3

Omran plays a prominent role in the development of the tourism sector by developing, managing, and investing in tourism projects.

Ensuring that the economic wealth of the nation stays and circulates within our borders is an important consideration for Omran.

2nd Sustainability Report | 30 - 31

Job creation is one of the most tangible impacts of tourism development.

2nd Sustainability Report | 32 - 33

Highlights The tourism industry’s total contribution to Oman’s GDP in 2013, in Omani Rials

2,079

(including indirect and induced impacts)

million OMR

Direct Economic Impact of Investment Development Projects

The travel and tourism sector plays an increasingly significant role in Oman’s economy. In 2013, the sector

Total contribution tourism in Oman has had to employment in 2013 (including wider effects from investment, the supply chain, and induced income)

6.4%

directly contributed 3.0% (OMR 982.8mn) to Oman’s

6

GDP, a relative share that is forecasted to jump to

8

7

7

5.4% per annum over the next decade.vii Visitor exports surpassed seven hundred million Omani Rials for the first time in 2013, with 1,660,000 international tourist 2010

arrivals projected for the next year. viii This has helped

2011

2012

2013

Oman rank 3rd globally for its 2014 projected real growth in direct contribution to GDP, as well as third

Hospitality Assets Managed

for its direct contribution to employment.ix Amount of local spending projected to result

295

from the Oman Convention and Exhibition Centre

million OMR

Omran plays a prominent role in the development of the tourism sector by developing, managing, and investing in tourism projects. In 2013, the total amount of the infrastructure investment estimated at a net total of 30.5 million OMR. The asset base has grown to include 8 hotels and resorts, 7 developments under development, and 11 joint-ventures and investments.

Number of SMEs

134

supported in 2013

“

Oman is currently perceived as offering extremely attractive investment opportunities for hotel groups and other tourist-related industries, largely due to rising domestic tourism and regional tourism, supported by an increase in higher disposable incomes.

10

10

8

8

2010

2011

2012

2013

Joint-Ventures & Investments

”

9

10

11

11

2010

2011

2012

2013

- Oxford Business Group, Oman Report 2012

Our Economic Contribution

2010

2011

2012

2013

52,134,853

15,641,469

33,973,217

30,485,101

Number of ongoing development projects

6

7

8

7

Number of tourism assets managed

10

10

8

8

Number of Joint-Ventures & Investments

9

10

11

11

Total infrastructure investment (OMR)

*some figures above are restated from the previous sustainability report

2nd Sustainability Report | 34 - 35

Economic Performance of Hospitality Assets

Hospitality Assets

Available Rooms (Daily)

As a part of its mission to stimulate the industry, Omran manages and invests in a number of hotels and resorts. Increases in the capacity and occupancy of these hospitality assets is an indication that a greater number of visitors are experiencing Oman and that Omran is meeting its goal of stimulating the tourism economy. In 2013, our aggregate capacity grew significantly to 1,028 rooms across Oman, with an

394

698

815

1,028

2010

2011

2012

2013

Average Number of Rooms Sold Daily

rates have remained relatively unchanged over the past three years, despite the adverse effect of adding newer properties to our asset base in emerging and non-urban assets has remained fairly steady; however, the addition

231

260

303

399

2010

2011

2012

2013

of new hotels has had the effect of lowering aggregate

and circulates within our borders is an important

prosperity. The WTTC estimates that the total

consideration for Omran. Our In-Country Value (ICV)

contribution of Travel & Tourism to Oman’s gross

initiatives prioritize local contractors and suppliers

national product is twice as large as its direct

for materials and other services for our hotels,

contribution. With a government mandate to develop

developments, and office operations.

Omran is to look beyond the direct company returns

Omran also believes that a healthy tourism sector

and consider the full economic value that will be

is one where Omanis are themselves spending within

generated by prospective investments. Our business

the industry. The WTTC reports that domestic travel

development strategy includes considerations related

spending represents 53.8% of direct sector GDP in 2013,

to developing new geographies with untapped

with growth of 11.1% for 2013.xii Omran’s own figures

potential, developing complexes that will generate

show that domestic occupancy at Omran’s hotels

opportunity for the tertiary sector, and pursuing

has increased significantly in past years and currently

mega-projects in niches that remain untouched

stands at 32% of all guests. Omran is building new

by the private sector.

properties, such as the largest mall in Oman, which will

Total Guest Nights (Annual) 134.9k

198.3k

160.6k

position Oman in the top twenty countries which will offer the best employment growth rates in the

a total employment contribution of 116,000 jobs per year.xi Omran contributes to this by creating direct

Economic Performance (OMR) 2010 70.5

64.0

50.3 30.6

30.7

2011

2012

2011

2012

2013

private retail and service industry.

million

Alila Jabal Akhdar

Musandam Resort

ADR

Wider Tourism Industry 26.5

RevPAR

Contribution to Sector GDP 2012

Hospitality Assets

Omani Occupancy Rate

2013

28%

21%

54.4%

Hospitality Assets

32%

11%

45.6%

Total Occupancy Rate 59.0%

Domestic Tourists International Tourists

2010

2011

2012

2013

Source WTTC 38.9%

43.5%

41.4%

Local Procurement 2010

12

million

employment for Omran staff, contractors, and hotel operators, as well as indirect employment for the

2010

14

employment for Oman until 2024.x This equates to

116.9k

78.7

Amounts Awarded to Local Contractors (OMR)

coming decade, with a projected 3.8% growth in total

Hospitality Assets

85.1

the service sector.

of tourism development. Long-term growth prospects

Hospitality Assets

grow annually in terms of its economic contribution to the nation.

Ensuring that the economic wealth of the nation stays

important factors contributing to Oman’s future

Job creation is one of the most tangible impacts

available room (RevPAR) and Average Daily Rate (ADR). new hotels is slated to increase year-over-year and

The indirect impact of tourism is one of the more

attract many Omanis and promote economic activity in

averages for economic indicators such as revenue per As is the trend in the industry, the profitability of these

Spending Local

the tourism industry, a fundamental approach of Hospitality Assets

average of 399 sold per day during the year. Occupancy

markets. The economic performance of long-standing

Indirect Economic Impact

2011

2012

2013

% of procurement spending on locally-based suppliers

2011

2012

2013

Oman Convention & Exhibition Centre*

10%

73%

49%

All other operations (Omran offices, developments, and hospitality assets managed by Omran)

10%

32%

31%

2nd Sustainability Report | 36 - 37

Case Study: Generating Economic Opportunity with the Oman Convention & Exhibition Centre (OCEC) Projected to start hosting events in 2016, the Oman

will require 12,000 construction workers. Third party

Convention and Exhibition Center (OCEC) is Omran’s

studies forecast that the project will generate

flagship tourism project. Conveniently located next

295 million OMR in the local development stage

to the airport, the complex will be a major venue for

spending alone which amounts to more than 55%

regional and international events. The Master Plan

of total construction spending. In 2013, more than

includes a Convention and Exhibition Centre, four

82 million Omani Riyals was tendered and awarded,

hotels, a business park, the largest shopping mall in

and 66 million Omani Riyals of new consultancy

Oman, and hotel apartments.

and construction tenders were issued. OCEC looks to Omani suppliers for equipment rentals, facilities

OCEC will create between 15-18,000 permanent jobs and contribute 200-240 million Omani Riyals to the national economy by 2030.

With a capacity of accommodating 3200 people in the auditorium, the complex will generate major economic activity once open. OCEC will create between 15-18,000 permanent jobs and will generate an annual 200-240 million Omani Riyals to the national economy by 2030.

The construction of the OCEC is also a significant source of economic opportunity in its own right.

When construction reaches its peak in 2015, the site

management, hotel suppliers, car rentals, retails and destination management services.

Though much of the economic value is fed back into the national economy naturally, Omran is proactive in following initiatives that support the retention of in-country value (ICV). We have a preferred status policy for Omani enterprises in the tendering process in order to support small and medium businesses.

For example, in 2013, we elected to deviate from the common practice of importing precast concrete slabs from abroad and used cast-in-situ concrete instead.

This channelled more, resulting in channelling more than OMR 5 million to local contractors and suppliers.

This also meant diverting more than 1000 trucks off our roads in order to make them safer for motorists.

Supporting Omani Entrepreneurs

Bringing the Message of Sustainability To Our Vendors Developing local companies is high in Omran’s agenda.

When it comes to seeking experienced contractors

Omran is keen to help Omani entrepreneurs and

locally, there are very few whom are capable of

provide support to projects that will generate new

carrying out and delivering complex and remote

tourism-related business. In 2013, we supported 134

projects. Dawood Contracting, an Omani company

small-to-medium enterprises (SMEs). As part of this

that was established in 1998, showed an unparalleled

strategy, Omran awards important hotel projects to

keenness towards working with Omran. Despite

local firms wherever possible. Since the hotel industry

lacking large-scale experience, the decision was

often relies on overseas expertise due to a limited local

taken to recommend Dawood Contracting for the

market, developing Omani experienced companies is

construction of Alila Jabal Al Akhdar resort. Although

of high interest to Omran. For this reason, extra efforts

it meant extra efforts, guidance and close monitoring,

are made to consider local entrepreneurs that have less

Omran chose to support the domestic market by

experience than major bidders. In 2013 Fareeda Battashi

awarding the bid to this local player. Since then,

started delivering the interior design services for the

Dawood Contracting have excelled in obtaining all

Khasab Resort.

necessary initial approvals, setting up the site facilities in accordance to Omran’s stringent QHSSE policies,

The local firm was familiar with the Omani style but

and continually demonstrating the highest levels of

had less experience with green building design. The

HSE, workmanship and overall project management.

strategic decision helped channel 150,000 Omani Rials

Omran considers this a success story as we have

to the domestic company, and served as a key learning

helped a local company to enter the league of

platform for the firm to gain experience in sustainable

internationally renowned contractors. Thanks to the

tourism. Fareeda Battashi selected a number of water-

experience, Dawood Contracting has gained enough

efficient fixtures and sanitary wares for the project,

confidence to bid on high-end projects in the country.

used low-energy bulbs, and procured sustainable porcelain flooring. Toxin-free fixtures were chosen to promote good indoor air quality, as well as water and energy-efficient devices and recyclable furniture.

The relationship with Fareeda Battashi has since grown.

The company was awarded with the lead consultancy services for the refurbishment of the Khasab Hotel.

This project will draw upon the crafts of local artisans to transform the Golden Tulip property to look more ‘Omani’ as part of the new Atana brand.

The mentorship thereby gave this local supplier the chance to integrate green building and heritage into the services she offers to become a stronger player

Omran awards important hotel projects to local firms wherever possible. Since the hotel industry often relies on overseas expertise due to a limited local market, developing Omani experienced companies is of high interest to Omran. For this reason, extra efforts are made to consider local entrepreneurs that have less experience than major bidders.

in the sustainable tourism market.

Local Procurement Number of Small-to-Medium Enterprises (SMEs) supported

2010

2011

2012

2013

-

-

40

134

2nd Sustainability Report | 38 - 39

Our Social Impact

Section 4

Omran is dedicated to investing in social initiatives that align with the company’s sustainability framework.

Omran plans to have community investment focus in SMEs for tourism-related projects in 2014.

2nd Sustainability Report | 40 - 41

True to its corporate image, Omran contributes positively to the environmental, socio-economic and cultural spheres of the localities it works in.

2nd Sustainability Report | 42 - 43

Our Workforce

Highlights Omanization rate

72%

Total community contributions

50,ooo

OMR

Lost time injuries or fatalities across all

0

of Omran’s developments

Omran’s female employment rate

27%

Direct and indirect jobs attributable to the wider

72,000

Job creation is an important component of tourism’s

Though employee turnover has remained relatively

tangible impact. The WTTC estimates that 72,000

unchanged, the company has identified employee

direct and indirect jobs were attributable to the sector

satisfaction as an important area for improvements.

in 2013, and projects growth in this figure of 10.6%

Accordingly, we have put in place new policies and

(ranking 2nd in the world for projected growth on this

hired external contractors to adopt best practices in

metric).xiii Omran contributes to job creation by hiring

talent management in 2014.

staff on its payroll, contracting work to suppliers, and creating new jobs in hotel assets.

Number of Employees, By Age Category

As of December 31st, 2013, Omran had 120 full time

12

employees and 781 staff who worked at hotels and resorts owned or managed by Omran. Omran staff were not covered by collective bargaining agreements, but did have the chance to communicate feedback and concerns to management through participation in

2

the values committee.

Our Workforce

82

2010

2011

2012

18-30

16

17

31

26

31-50

61

76

73

82

>50

2

9

8

12

79

102

112

120

Total Workforce

tourism industry in Oman in 2013 (WTTC figures)

2013

61

26

16 2010

2011 18-30

* All staff are full-time employees

Staff Retention Total employees that left the organization Employee Turnover Rate

2012 31-50

2013 >50

2010

2011

2012

2013

6

16

13

11

10%

18%

12%

9%

2nd Sustainability Report | 44 - 45

Workplace Diversity

Workplace Diversity

Female Workforce 24%

26%

Youth Workforce (30 and Under) 31%

Female workforce

27%

Omani workforce

28%

4%

2010

6%

2011

7%

21%

2012

2013

20%

2010

22% 17%

2011

Youth workforce (30 and under) 2012

As % of total workforce

Omani Workforce 90%

76% 2010

90%

67% 2011

a 1:1 ratio between of men and women. Omran has also 90%

100%

71%

72%

2012

2013

2011

2012

2013

As % of executive management

0%

0%

0%

16%

As % of all managers

4%

6%

7%

15%

As % of total workforce

24%

26%

31%

27%

As % of executive management

90%

90%

90%

100%

As % of total workforce

76%

67%

71%

72%

As % of executive management

0%

0%

0%

0%

As % of total workforce

20%

17%

28%

22%

2013

As % of all managers As % of total workforce

2010

Employee Training & Development

empowered women through external initiatives that

Omran invests significantly in staff development.

includes women’s day staff gatherings, the springboard

The amount we have spent in training is the highest yet

female entrepreneurship training program, and tourism

at 1,146 OMR per employee. In 2013, we held 70 training

micro-enterprise support for women in Khasab.

courses and 15 conferences, amounting to 33 hours of

Training Figures Per Employee OMR 989

OMR 928

OMR 1,146

OMR 391

contact time on average per person. Over the year, 92% Youth are another key target segment for our human

of Omran employees received training.

resources department. With a population that is 70%

As % of Executive Management As % of total workforce

composed of individuals under the age of 30,xiv the

Our development program also includes regular

national economy is in need of many new jobs for

performance and career development reviews, for

fresh graduates. Whereas the number of youth hires

which 100% of male and female employees participate.

43hrs

54hrs

2010

2011

33hrs 2013

23hrs 2012

only stood at 4 individuals in 2009, more than 1 out of 5 Omran employees were in the 18-30 age bracket.

Hiring Omanis is another important component of

Hiring Omanis at our Hospitality Assets

Training and Development

2010

2011

2012

2013

Total number of training for total workforce (Hours)

3,432

5,460

1,646

3,846

43

54

23

33

30,870

93,720

122,674

135,196

391

928

989

1,146

216

Omran’s HR strategy. The government of Oman seeks

Millennium

71

to promote employment of Omani workers in certain

Atana Khasab

14

sectors and job functions as part of its initiative to

City Hotel Duqm

12

up skill the Omani workforce. Omani nationals are

Total cost of training (OMR)

Crowne Plaza Duqm

19

given priority for all positions where they possess the

Average cost of training per individual (OMR)

10

necessary skills and qualifications.

InterContinental Muscat

Golden Tulip Dibba Masira Island Resort Total (Hospitality Assets)

11 353

Omran’s Omanization efforts are not limited to staff hiring. As part of our commitment to national capacity building, Omran established a mentoring program

Hiring Omanis at our Developments: 56

within the OCEC construction supervision team to

OCEC 50

allow the largest number of Omani engineers from

Alila Jabal Akhdar Resort

various disciplines gain on-the-job exposure to different

Atana Musandam Resort

Total (Developments)

20 126

stages of construction. Our legal staff have included a set of criteria for tenders that evaluate initiatives

The diversity of our employees is an asset to our

undertaken by contractors to promote local Omani

success. In 2013, 27% of our staff were women—up 5

employment. And finally, many CSR initiatives similarly

percentage points from 2010—and as of 2013, we had

target young Omanis and projects that support the

the first woman appointed to our executive team.

employment of Omanis in indirect ways through

The company maintains a compensation structure with

entrepreneurship and SMEs.

Average hours of training per year per employee

Workforce receiving regular performance and career development review

% Of female

100%

% Of male

100%

% Of total workforce

100%

2nd Sustainability Report | 46 - 47

Creating a Safe Environment Omran places health and safety at the top of our list of priorities, and we have a target of attaining zero losttime injuries per year across all our operations and sites.

All employees are responsible for following safety rules

and precautions as required by their job function, as mandated by their operational areas. Managers on their part are responsible for providing the required safety training and regular monitoring to ensuring safe working conditions.

Omran achieved 9.3 million man-hours with zero losttime incidents or fatalities across all of our developments.

Employee Health & Safety Number of work-related fatalities Total number of man-hours (Millions) Number of lost-time injuries Lost-time injury rate (LTIR) Number of fire drills

2011

2012

2013

0

1

0

16.5

5.5

9.3

0

1

0

0.00

0.04

0.00

4

6

18

Community Investment and Sponsorship The Corporate Social Responsibility (CSR) department at Omran is dedicated to investing in social initiatives that align with the company’s sustainability framework. The four priority areas that guide our work include education, skills development, economic growth, and community empowerment. These categories steer our social outreach in a way that sustainably enhances the quality of life for different communities around Oman. We always look for innovative ways to meet these objectives, and consider prospective initiatives on a set of criteria that weight benefits to the local community, Omran’s staff, and partners.

“

Omran is committed to playing a significant role in the localities where it operates and in partnership with its stakeholders to ensure that its business operations positively contribute to the environmental, socio-economic and cultural spheres of these localities and reflect positively on its corporate image.

Omran’s CSR Statement

Community Sponsorship

2010

Creating a Respectful Environment Omran is strict about upholding its Code of Conduct and maintains a zero-tolerance approach to discrimination and harassment of any kind.

Thanks to proactive yearly training, we have not faced any reported incidents of rights violations in the past 5 years. In order to strengthen our fair treatment implementation mechanisms, Omran has a strict non-reprisal policy in place to protect potential victims and encourage them to come forward.

Contractor Relations Contractors are an integral part of the work we do, and even though they fall largely outside of the bounds of our day-to-day management, we seek to work with contractors who embody the same values, environmental standards, and ethical outlook as Omran. The OCEC is a key illustration of this. Omran has invested heavily in training and mentorship for contractors to ensure that they follow Omran’s high level QHSE standards and operate in accordance with our code of conduct.

Contractor Relations

2010

2011

2012

2013

5%

10%

0%

0%

Significant suppliers identified as having significant risk for incidents of child labor

0

0

0

0

Significant suppliers identified as having significant risk for incidents of forced or compulsory labor

0

0

0

0

Number of significant suppliers, contractors, and other business partners that have undergone human rights Screening

”

2011

2012

2013

OMR 50,000.00

OMR 41,240.00

OMR 70,000.00

OMR 50,000.00

2nd Sustainability Report | 48 - 49

Community Investment and Sponsorship (continued) Community investment highlights for 2013 include: • Zaree: Zaree is one of Omran’s most successful support projects in 2013. The word Zaree means an even thread in Arabic, usually made of fine gold or silver and used in brocade work. The project is a tourism-related micro-enterprise initiative for women. Piloted at the end of 2012, Omran gave the means for six local women of Khasab to welcome groups of female tourists for authentic Omani cultural experiences. Since then, the program has worked with some 24 cruises to serve over 700 female passengers and bring a taste of Omani life to the world. The program has expanded to cater to all genders and is now an established activity on tourism itineraries of tourists passing through Khasab. Since its first year, Omran partnered with the SME development organization Sharakah to provide ongoing support in delineating a five year business continuity strategy for the women.

• Masarra: Run in collaboration with the Ministry of Agriculture and Fisheries (Rural Women Department), “Masarra” is a new brand for rural women’s products that is created, financed, and supervised by Omran.

Masarra is a woman’s name that comes from the Arabic word for happiness. The initiative acts to provide a link between hotels, local farmers, and rural women to create new economic opportunity in nonurban areas. The project capitalizes on the combined potential of having a single brand identity and a basket of traditional merchandise to achieve greater marketing potential for the women. The brand seeks to help them increase sales and show the nation’s non-urban products to Omanis and the world.

• Intajee: Intajee is Omran’s flagship program for new micro-business development. The name, which means “My Product” in Arabic, captures the essence of the initiative’s philosophy: to empower Omani entrepreneurs to take something of their own and transform it into sustainable business. Omran is proud to count Salma and Aisha Al Hajri among those supported in 2012. Their business, Salma’s Chocolates, is today a recognized company that operates on its own and is taking the chocolate business to new levels.

• Anti-littering Campaign: Environmental campaigns that engage businesses, community groups, schools, governments and individuals to clean up and conserve their environment. These campaigns include clean up events, plantation, recycling programs, and educational campaigns.

• Springboard: A four-week self-development programme for women facilitated by the British Council, the Springboard Programme consists of a series of workshops which are run by trainers from the region by using materials which have been specially developed for the programme.

The workshop’s aims include, setting goals according to values and taking practical steps towards them, assertiveness and presenting a positive image.

• Injaz Oman: Injaz Oman is a non-profit organization (NPO) that fosters strategic partnerships with Oman’s business and education sectors. With the help of qualified and dedicated volunteers, Injaz has partnered with Omran to deliver educational programs on entrepreneurial and leadership skills.

• Musahamatee (“My Contribution”): Omran has worked with Non-Governmental Organizations (NGOs) and the Ministry of Social Development to facilitate the making of charitable donations directly from dining and accommodation bills at hotels.

These funds have been channelled to a number of charitable causes by the non-profit Dar Al Atta’a foundation. Eight of Omran’s hotels and resorts currently participate in this philanthropic initiative for hotel patrons.

• Capturing the Beauty: In 2013, Omran collaborated with the Photographic Society of Oman‎‫‏‬and supported a group of 22 photographers from the Mussandam and Al Jabel Al Akhdar where the photographers captured the beauty of their villages through their lenses. Special courses in photography were conducted by three famous Omani photographers: Rashad Al Wahaibi, Ahmed Al Kindi and Ahmed Al Toqi. The initiative was called “Capturing the Beauty”. To promote the photographers, a special corporate gift was designed and presented to Omran’s stakeholders which was an Omani Mandoos that had different Omani flavoured chocolates, presenting photos from the photographers. The Mandoos was made by Mansoor bin Rashid Al Nabhani, an Omani

Community Impact Total amount spent on community investments (OMR) Total amount spent on environmental sponsorship (OMR)

craftsman who has been working for over 45 years in this field, where he learnt and inherited the skill from his father. Mansour uses different types of wood such as Mahogany and Teak and decorates them with original brass pins and nails.

The chocolates in the Mandoos were from an Omani SME “Tamrah”, a premium brand that produces exquisite Omani dates and sweets. Tamrah products received great admiration and demand since its establishment in 2011. The brand aspires to maintain its reputation for providing fine authentic Omani dates and associated products of splendid taste and quality.

2010

2011

2012

2013

50,000

70,000

41,240

50,000

5,000

7,026

11,800

5,573

2nd Sustainability Report | 50 - 51

Our Environmental Impact Section 5 On the whole, Omran saw many improvements in company and asset environmental performance from 2012-13.

The company is getting better every year at understanding its environmental footprint and putting in place measures to minimize its impact.

2nd Sustainability Report | 52 - 53

Omran has implemented an environmental management system that is certified under ISO: 14001 for adherence to international standards for environmental management.

2nd Sustainability Report | 54 - 55

Highlights Reduction in Greenhouse Gas Emissions

32%

Environmental Management at Omran Year-Over-Year Reductions per Employee

Number of Leed Projects 9

GHG

Waste

Water

7

LEED projects under development

9

Waste recycled in 2013

30%

-3%

5

5

2010

2011

-4% 2012

2013

-29%

Environmental management begins with the

LEED Building at Omran

implementation of strong measurement and reporting

In 2012, Omran committed itself to making future

mechanisms to track environmental performance

buildings to the LEED green building standard

over time. Since 2009, Omran has implemented an

(Leadership in Energy and Environmental Design).

environmental management system that is certified

Today, all nine of our development projects are

under ISO: 14001 for adherence to international

pursuing this certification.3 The standard recognizes

standards for environmental management.

our investment in environmental management and efficient use of resources in our developments. Omran

Environmental responsibility is not only an ethical imperative for the tourism sector, it is something that has real consequences on our bottom line. Global warming, extreme weather, environmental degradationthese factors can shorten peak seasons and strip Oman of the natural beauty upon which tourism depends.

At Omran, we are becoming better every year at understanding our environmental footprint and putting in place measures to minimize its impact.

As a result of our environmental management systems

was the first company in Oman to pursue the LEED

and a strong commitment from management to

building certification and the first in the Sultanate

improve environmental performance, we have pursued

to obtain USGBC membership.

many projects to improve efficiency and reduce waste through educational programs, facilities upgrades,

Our commitment to both LEED and the principles

and employee programs towards building a culture

of sustainability extends to our staff and project

of environmental stewardship. These programs have

managers. Ammar Al Kharusi is the first Omani

yielded strong results such as improved energy and

to earn the LEED AP (Accredited Professional)

water efficiency and a reduction in waste from our

certification. As site manager for the Alila Jabal Akdar

office building.

Resort, Ammar has been instrumental in applying green building principles and increasing the local skill

On the whole, Omran saw many improvements

base for green buildings and sustainability in Oman.

in company and asset environmental performance from 2012-2013. The company’s total greenhouse gas emissions are down 27% (and 29% per employee), and Omran is performing better in waste management and water consumption per office employee compared to 2012.2 A similar story runs along our hospitality assets. Per capita figures show that greenhouse gas, waste, and water consumption are all following a downward trend since 2011.

2 As a greater number of employees now work in the field, relative figures for office operations use an estimate of average daily number of staff working out of our offices, rather than the total count of staff on payroll.

This results in per capita figures for water, waste, and GHG which are more accurate and representative. For 2013, Omran estimates that 116 individuals worked as “office employees” per day.

Our Khasab and Jabal Akhdar projects are currently completed and have LEED applications pending. The remaining 7 projects are still underway and will be submitting applications upon completion.

3

2nd Sustainability Report | 56 - 57

LEED Building at Omran (continued)

“

Any vision of sustainable development must recognize that the environment must be protected to preserve & provide for the wellbeing of our future generations. Sustainable development cannot come from policies only, but must be taken as a principle guiding the choices we take. We are happy to see that not only has Omran been the pioneer of this initiative in Oman to reduce the negative impact of its development, but is also taking serious efforts to ensure that all their developments meet the stringent regulations required for the internationally recognized LEED certification.

”

- Dawood Contracting Company

Case Study: Green Building at Jabal Akhdar

Still, pursuing LEED has not come without challenges.

The relative newness of LEED and sustainability in Oman means Omran needs to be creative in finding solutions to environmental challenges. As recycling facilities are far and few between, sites such as the Atana Musandam Resort have had to find their own approaches in recycling waste. In the case of Khasab, the hotel segregates waste into concrete waste, steel waste, food waste, wood, plastics, and paper. Some of these wastes were either re-used or recycled.

Although the lack of specific services, materials, and know-how continues to be among the challenges faced, Omran is gaining increasing experience in green-building which it will continue

Atop a breathtaking cliff at Jabal Akhdar mountain,

Waste Management

to apply to future projects.

Omran is developing a resort slated to welcome its

A minimal amount of waste will be sent to landfills by:

first guests in 2014. The unique combination of natural

• Segregating and diverting rubbish

landscape, misty mountains, and year-round pleasant weather make this the perfect location for an 86room luxury resort. To keep the natural attractiveness of the secluded location, quiet surroundings and vast

Ecosystem Protection Jabal Akhdar’s natural heritage will be protected through: • Site designs that prevent sedimentation, erosion and

natural landscape, our approach has been to make

storm water runoff, and maximize open space for

environmental considerations the hallmark of this

local habitat

project. Omran has designed and built this resort with

• Plantation of indigenous and adaptive flora

immense care and attention to details. In line with our

• The use of local materials, architecture and layout that

commitment to minimizing the environmental impact

blend the resort into its natural surroundings

of our assets, Jabal Akhdar resort is pursuing LEED Gold certification for green buildings.

Omran is proud to partner with Alila, who will take over the day to day operations and bring their global experience and leadership in sustainable tourism to the property.

A truly green building requires not only that our resort is environmentally friendly, but also that that the construction process is undertaken responsibly. Aiming to achieve LEED Gold certification, we have built the Jabal Akdar resort to some of the highest environmental standards of excellence:

Water Conservation The resort will generate 35% annual water savings from: • Water efficient landscaping that uses adaptive plants • Low flow fixtures that reduce water consumption • An on-site sewage treatment plant that provides 60% of irrigation requirements

Energy Conservation The building will reduce energy use by 22% and generate 8% of energy needs from renewable sources This is thanks to: • Roof materials and hard landscape materials chosen to reflect heat • Solar panels for HWS that will provide renewable energy • Energy efficient HVAC, well-insulated envelope, and smart and controllable lighting • Fuel efficient vehicles for operations

2nd Sustainability Report | 58 - 59

GHG Emissions

Energy Consumption

Omran Offices & Staff

Greenhouse Gas Emission ( Tonnes of CO2e)

Omran’s Hospitality Assets

Omran Offices & Staff

GHG per Guest Night (kg CO2e)

Hospitality Assets

Omran Office Total Energy (GJ)

Electricity per Guest Night (kWh)

1,136 918

8,519

832

730

161

6,882 156

5,917

5, 099

120

137

122

112 2010 2010

2010

2011

2012

2013

2010

2011

2012

2011

2012

2013

2011

2012

2013

* Hospitality asset figures are detailed on p. 74

2013

* Hospitality asset figures are detailed on p. 46

Greenhouse gases (GHG) created by mankind are the

The absolute and relative Greenhouse Gas (GHG)

biggest contributors to climate change. For our industry,

emissions associated with Omran’s office operations

the majority of these emissions come from the indirect

are down to 832 tonnes of CO2 equivalent in 2013.

emissions created through electricity generation and

The relative impact of carbon at our hotels and resorts

fuel use for vehicles. Globally, five per cent of global

has also continued to decline from its high in 2011. Given

carbon emissions come from the tourism sector, with

our carbon footprint results primarily from purchased

approximately 1% of the total from accommodation

electricity, much of the relative decoupling comes from

alone.xv As a major developer and manager of tourism

energy savings and efficiency gains at our main office

assets, Omran is transparent on the impact of its

and hotels.

Smart energy usage begins at two points for

and supported employee awareness of energy usage.

a company: 1) building employee energy awareness,

In addition, we have also compressed our business

and 2) investing in energy-saving devices and materials.

working hours to 7:30am – 3:30pm by eliminating the

At Omran, we pursue both approaches.

lunch hour. This has lowered electricity usage for our office to an annual 51.0 GJ per office employee.

Communicating the value and importance of energy is a basic and necessary step to improve environmental

Investing in energy efficiency is central to our assets

performance. Omran achieved a 31% reduction in total

and developments. Thanks to the LEED framework,

energy use in the past year. This is mainly thanks to

our developments have taken a number of steps to

electricity savings achieved through energy awareness

ensure that energy efficiency is built into our projects

and a reduction of staff working inside our offices on

at every turn, from design to usage.

any given day. Increased carpooling and vehicle fuel

properties on climate change.

GHG Emissions (tonnes of CO2 Equivalent)

143

128

efficiency have also lowered our fuel usage.

2010

2011

2012

2013

Investing in energy efficient materials and devices has Small actions have decreased our energy consumption

Direct ghg emissions

Total scope 1 - i.e. Emissions from sources that are owned or controlled by the reporting entity.

254

378

468

302

Indirect ghg emissions

Total scope 2 - i.e. Indirect ghg emissions from consumption of purchased electricity, heat or steam

477

540

668

530

Total greenhouse gas emissions

730

918

1,136

832

Ghg emissions per office employee*

7.4

9.0

10.1

7.2

further led to improvement in our energy performance.

Fuel Consumption

2010

2011

2012

2013

Vehicle fuel consumption – gasoline (L)

39,525

139,800

172,976

111,851

* The boundary of the figures in the table exclude Omran’s Investments, Projects, and Hotel Assets. Omran does not use Diesel fuel in its operations.

Energy Consumption (GJ)

2010

2011

2012

2013

Direct energy

3,097

4,616

5,712

3,693

Indirect energy

2,002

2,266

2,807

2,224

Total energy (direct + indirect)

5,099

6,882

8,519

5,917

64.5

67.5

76.1

51.0

Energy consumption per office employee* * The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46

The Khasab hotel achieves energy savings of 80 % by using compact florescent lamps and investing in new solar water heaters.

* The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46. Due to a clerical error in the 2012 report, figures above are restated

2nd Sustainability Report | 60 - 61

Water Consumption

Case Study: Saving Water in Khasab

Omran Offices & Staff

Omran Company Water Consumption (m3) 718 626

2010

716

617

2011

2012

2013

Consumption levels per employee have remained fairly steady and continue to be at approximately half the typical international rate for office environments.

Water at our hotel assets is used for landscaping, guest accommodations, and cleaning. We are more effective at making savings and have brought levels down to 1.1

Omran’s Hospitality Assets excluding GT Khasab

Water Consumption per Guest Night (Litres)

cubic meters per occupant. The majority of our LEED developments are also making water savings an integral part of building plans.

1.6k

1.4k

“

over years, this is the result of a larger workforce.

Sustainability was the way of life of our ancestors: because falaj systems use gravity flow, water use never exceeded water supply.

The Sultanate’s traditional methods of water management provide important lessons for the future.

Using water fairly in times of plenty and times of scarcity is one of these lessons. Matching water use to water availability, a fundamental characteristic of the falaj system, is an essential element in planning water management in Oman’s climatic conditions.

Consumption levels per employee have remained fairly

- Oman Water Society publication

1.1k

.4k

2010

2011

2012

2013

Water is a very precious resource for a region where supplies are small and often depletable. Oman is fortunate to have renewable water, the majority of which comes from the ground.xvi However, Oman Water Society projects that the demand on the nation’s limited supply will increase in coming decades to create a large water deficit.xvii This makes water conservation a highly salient and pressing priority.

Water at our office is used for cleaning, washrooms and maintenance. Although net water use has increased

”

steady and continue to be at approximately half the typical international rate for office environments.

Water Consumption (cubic meters)

2010

2011

2012

2013

626

617

718

716

Water consumption from other sources

0

0

0

0

Water consumption per office employee*

7.9

6.0

6.4

6.2

Water consumption from municipal water supplies or other water utilities

* The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46.

There is acute water shortage in Khasab, making responsible use imperative necessity rather than an option. In order to overcome this, the Atana Musandam Resort has had to create its own desalination plant to generate potable water. As this is a challenging process, our hotel has invested in water minimization measures and technologies. Aerators in taps and flushing tanks have minimized consumption levels, and plumbing for washrooms provides maximum force using minimum water. The facility also has a sewerage treatment plant that recycles grey water for irrigation.

2nd Sustainability Report | 62 - 63

Waste Management Omran Offices & Staff

Omran: Waste & Recycling

2013

2012

30%

30%

Hospitality Assets

Waste per Guest Night (kg)

200 kg

200 kg

2011

20%

150 kg

2010

10%

150 kg

Waste recycled

Waste sent to landfills

12.2

13.1

2011

2012

12.2

7.1

2010

2013

* Hospitality asset figures are detailed on page 74

Omran produces waste at its offices, developments, and

Omran has worked on waste reduction in its properties

hospitality assets. Our printers minimize paper and ink

and developments. Relative levels of waste per occupant

usage by having a double-sided printing and black and

are down to 12.2 kg for our hospitality assets. At our

white cartilage default setting. Our office operations do

developments, materials are sorted on sight and recycled

not produce significant amounts of waste and yearly per

wherever possible. And we have worked with the local

capita levels remain relatively constant at approximately

community in Jabal Akhdar on an anti-littering campaign

6 kilograms per employee. This is largely due to

that drew in some 200 volunteers.

employees taking a shorter workday at the office that excludes a lunch break. Omran also continues to recycle approximately 30% of its desk waste, mainly paper.

Waste (kilograms & Percentage)

2010

2011

2012

2013

Total waste produced (kg)

150

150

200

200

Total waste recycled (%)

10%

20%

30%

30%

Project-produced wastes being recycled (%)

50%

Waste produced per office employee (kg)*

1.9

1.5

1.8

1.7

Waste recycled per office employee (kg)*

0.19

0.29

0.54

0.50

* The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46

2nd Sustainability Report | 64 - 65

Our Cultural Heritage Section 6 Omran makes the preservation and strengthening of Omani heritage one of the four elements of its sustainable tourism strategy.

A key way of celebrating our heritage is to engage with it actively in the present-day.

2nd Sustainability Report | 66 - 67

Engaging with our heritage ensures that our work has one foot grounded in the past, and one in the present.

2nd Sustainability Report | 68 - 69

Our Cultural Heritage

Case Study: Incorporating Heritage in Khasab The Atana Musandam Resort is designed with a number of features that highlight Oman’s culture and heritage.

Its external stone facade is modelled after the Bait Al Quful site. Structurally, the built form is low-rise

Oman’s heritage is filled with distinctive history, arts, and architecture that cannot be found anywhere else in the world. This cultural richness represents the foundation upon which our growing tourism industry is built. Recognizing the importance of this connection, Omran makes the preservation and strengthening of Omani heritage one of the four elements of its sustainable tourism strategy. In practical terms, this means anything from using arts and crafts throughout hotels, to building developments with traditional architectural features.

Although the approach varies by project, the purpose is always the same: To provide an authentic, Omani experience for guests.

A key way of celebrating our heritage is to engage with it actively in the present-day. We often use traditional designs and patterns from our forefathers, but equally encourage newer work by Omani artists. Our initiatives such as Capturing the Beauty (our training programs for photographers) promote engaging with Omani heritage by engaging with the culture through contemporary mediums. This ensures that our work has one foot grounded in the past, and one in the present.

Incorporating Heritage in Hospitality Assets

and spread out to resemble the local architecture and planning of the peninsula. The finish on the timber doors and window emulate the rough, heavy and unfinished look that is found in forts and old buildings.

These elements are bound using ropes in the traditional

Arts and crafts represent a key way in which hotel guests experience Omani culture. Accordingly, we look to incorporate traditional elements at every turn when choosing articles for use in our hospitality assets.

Our hotels showcase works of art made exclusively by Omani artists, national artifacts, and traditional crafts.

Architecture and interior design are other element of the guest experience that express the distinctive Omani style. The Atana Mussandam Resort in Khasab is a good example: guests are immediately struck by a distinctive Omani ceiling in the dining room, painted beams resembling Omani fortified residences, and light fixtures made of clay and wood. Even simple things, such as silverware, convey subtle expressions of Oman’s heritage.

manner and finished by traditional hand-made iron fittings. Other elements, like flooring and paving, are further being treated using natural stone pavers, flag stones, and cobbles. A rough plaster finish is used on block walls to give the hotel a rustic Omani look.

The property has been designed to give guests a truly cultural experience.

The overall landscape concept was inspired by the traditional countryside, and made up of elements seen in traditional Omani farmsteads. An adaptation of a traditional Omani well was installed as a focal feature, containing interpretative historical information for hotel guests. The property also took into consideration the cultural traditions for domestic occupants: private clusters were designed to accommodate large Omani families and kept in mind their privacy and comfort.

2nd Sustainability Report | 70 - 71

Incorporating Heritage in Developments Omran is continually seeking to create developments that use traditional features of Omani architecture.

At the Alila Jabal Al Akhdar property, we are modeling the building’s external façade on elements found in the nearby Al Sarrab village. Only few kilometers away, this abandoned housing community is entirely constructed from local mountain stones, and remains standing to this day. Omran takes inspiration from this old style, and all buildings at the resort mirror its character. The architecture also draws on elements from old Omani homes such as arches, niches and timber structural elements, which take precedence over all else.

The interior design and landscaping of Alila Jabal Akhdar

What’s in a Name?

draws on a number of elements that celebrate Omran’s

Names give us a sense of identity. A sense of belonging.

diverse heritage. The landscaping reflects the typical

At Omran, we celebrate our diverse cultural heritage

orchards watered through a Falaj system associated

by naming our initiatives after concepts that are Omani

with the Hajar Mountain Range. The landscaping also

through and through. Our micro-enterprise project

makes extensive use of rosebushes - an allusion to

for women, Zaree, is a great example. Its name comes

Jabal Akhdar’s local rosewater industry. The site also

from the decorative thread in the Omani attire, turned

features over 400 traditional pieces of pottery, all

into to a successful and sustainable business idea for

made in nearby Bahla. Mural paintings by Omani artists

tourists visiting Khasab. Other CSR initiatives such as

Saud Al Hanini and Jumah Al Harthi were chosen to

Musahamtee (my contribution) and Intajee (my product)

reflect traditional Pomegranate twigs found in Jabreen

similarly use traditional Arabic to give a sense

Castle. Inside the hotel, furnishings use textiles and

of common Omani identity and responsibility.

fabrics for cushions, rugs and wall hangings made by

Our developments and properties also draw on tradition.

many weavers throughout the Sultanate, and palm leaf

The rest area development is named Aber after the

baskets can be found in every guestroom. Traditional

Arabic world for bypasser, and the new Atana Spa will

cloth bags made of woven “Wizar” (cloth worn by

be named Galo after the time-honored pre-wedding

Omani men) fabric from Samail additionally adorn

ritual for brides. All these brand names communicate

different guest appliances. Together, this art, pottery,

important ideas. They touch people’s hearts, preserve our

textile, and basketwork melds into a guest experience

heritage, share the country’s natural beauty, and send

with a distinctly Omani feel.

a message that we celebrate our culture.

2nd Sustainability Report | 72 - 73

Atana

Interview with an Omran Employee Omran talks to Dalida Abdulnour about Atana

Atana’s Vision ‘’To be a regional leader in the hotel industry, by promoting the Omani hospitality experience and culture while being sustainable’’ Despite having a culturally rich and diverse nation,

and interlacing Omani culture into every service

many hotels and resorts in the country do not provide

opportunity. To link the past to the present, the brand

a guest experience that emphasizes Oman’s

has combined traditional and contemporary elements

uniqueness. Omran’s response to this is to create

of our culture. By providing a consistent level of 4 star

the first hospitality brand in the GCC dedicated

hotel service, the brand is positioning Omani hospitality

specifically to national cultural heritage. By forming

as one of elegance and quality.

Q: What does Atana mean to you?

D: The proposition of the [Atana] brand is ‘Shades of

and the whole world. We decided that some major

name “Atana,” a dedicated team will bring an authentic

As many of Omran’s assets are in non-urban locations,

Oman.’ The word Atana is an Arabic word meaning:

written with Omani Arabic dialect from all over

Omani experience to the hotel industry. The Atana

sustainable development of local communities is

he came to us – leveraging on hospitality being a

Oman- you can’t believe how diverse just this part

corporate staff in Muscat will work full time to gain

central to Atana’s work. The geographic spread is an

second nature to Omani’s, and the guests choice to visit

is. Walking into an Atana, you should feel like you’re

specialization in this profitable and growing niche

opportunity for Atatna to showcase local skills and to

an Omani establishment. With this brand, we want to

walking into an Omani home. The key areas in

market to become a hotel operator for a range of

recruit, develop and retain top quality employees from

celebrate the diversity of our culture, the differences

the hotel such as lobby (majlis), reception (rozna),

properties around the Sultanate.

all corners of Oman. The Atana approach is therefore

from North to South, East to West, old and new.

room (hojra), gym (tamreen), restaurant (mawra:

an independent subsidiary and trademark with the

Dalida Abdulnour Brand Manager

destination driven; every Omani hospitality experience

kitchen) and mini fridge (thalaja) are all named after the rooms in a typical Omani home. We even

Properties will not exceed 150 keys to keep a local

Q: How did the idea for Atana come about?

D: In my opinion, we could have created a brand that

and personalized feel.

is just like any other 4 star brand in the world – easy

and are growing into shaping their own personality,

to do and a piece of cake! But the question was: as an

with kids menus and activities shaped around them.

Omani company, taking part in shaping the tourism

Also, two of my favorite brand experiences are working

sector in Oman: what can we do to contribute to the

with local businesses and celebrating Omani Talent:

country? To our heritage? To our culture? The answer

for example, we sourced all our toiletries from an

came through creating the whole brand of Atana to be

Omani SME and made our laundry bags through the

based on one clear foundation: Omani. Indeed, this took

Omani Women association in Khasab for our 1st two

a lot of effort and digging deep into our Omani roots to

properties- on the Omani Talent, we partnered with

pick and select the best foundations to form the base of

Chef Issa Al Lamki, a celebrity chef, to create our

Atana. These roots are historical yet contemporary and

Mawra concepts and menu, and with Salah Al Zadjali,

were known for generations: The Omani Hospitality.

a talented musician, for all our Atana music such as

The Oman Today.

lounge music. All of this is to give the guest the feeling

Omran has already soft launched Atana in some

will be focused unique to the location of the hotel.

of its properties. The brand has brought diverse richness of Oman’s culture by incorporating crafts into hotels, infusing traditional art into interior design,

Arabic phrases used in all our collaterals should be

introduced ‘Rashid & Mayya’, which are our kids corner,

of walking into an Omani home, reflect the Omani

Q: What is the objective-if any-behind the brand experience? How is this achieved?

D: We want to educate people about our culture. We

hospitality and embrace the greeting rituals that usually

love it and are proud of it. It is rich and vivid and we

You are most welcome.

want to celebrate this through Atana, within Oman

take place with an Omani family, and experience Oman in its many shades. This is our way of saying:

2nd Sustainability Report | 74 - 75

Appendices This section presents the bigger picture of the impact we have on our community.

The report is written in accordance with the Global Reporting Initiative (GRI) G3.1 guidelines for sustainability reporting.

2nd Sustainability Report | 76 - 77

The indicators and disclosures in this report send a strong signal that our company is serious about taking ownership over the full extent of our operations.

2nd Sustainability Report | 78 - 79

Appendix A: Reporting Approach and Parameters Report Boundary

Our Approach to Data

For the purposes of our GRI check, the boundary for

In order to present a fair and complete picture of the

this report is limited to quantitative performance

company’s impact, Omran collects data on operations

at our main office in Muscat. The GRI 3.1 disclosures

Appendix B: Glossary and Acronyms AP

Accredited Professional

ISO

International Organization for Standardization

CEO

Chief Executive Officer

ITCs

Integrated Tourism Complexes

that are not limited to activities at the head offices in

CFO

Chief Financial Officer

LEED

Leadership in Energy and Environmental Design

falling within these boundaries are clearly indicated

Muscat. This includes information on Hospitality Assets

throughout this report (“Omran Offices & Staff”), and

and Developments.

COO

Chief Operating Officer

LNG

Liquefied Natural Gas

CO2e

Carbon Dioxide Equivalent

LTIR

Lost-Time Injury Rate

summarized on page 81. However, as the full impact in asset development, management, and investment is

As our different projects operate on different scales

CSR

Corporate Social Responsibility

NGO

Non-Governmental Organization

not captured by this limited boundary, we choose to

and realities, caution needs to be applied in aggregating

DG

Director General

NPO

Non-Profit Organization

make select disclosures that go beyond our head office

data. For instance, it would be misleading in most cases

operations. Covering information on our hotels and

to present averages of a large project such as the Oman

GCC

Gulf Cooperation Council

OCEC

Oman Convention & Exhibition Center

construction projects presents the bigger picture of the

Convention and Exhibition Centre with a much smaller

GDP

Gross Domestic Product

OMR

Omani Rials

impact we have on our community.

entity such as the Salalah Seafood Restaurant. For this

GHG

Greenhouse Gas

Q1

First Quarter (January 1 – March 31)

GRI

Global Reporting Initiative

Q2

Second Quarter (April 1 – June 30)

reason, our approach make use of weighted averages Readers will notice results in a more transparent report

rather than a simple arithmetic mean. Our report also

than ever. For our hospitality assets, we have selected

presents relative figures (for instance, per capita figures

HC

Human Capital

30 indicators that focus on the environment and

by employee or by hotel occupant). These allow for

HR

Human Resources

economic performance (summarized on page. 82).

a fairer and normalized comparison over time and

For construction projects, we continue to focus

across operations of different sizes. Information

HSE

Health, Safety, and the Environment

on health and safety performance and planned

presented in this report has not received third

HVAC

Heating, Ventilation, and Air Conditioning

environmental impact, as these are the main concern

party assurance.

HWS

Hot Water Systems

USGBC

U.S. Green Building Council

In-Country Value

WTTC

World Travel and Tourism Commission

for our developments. Our investments fall outside of the boundary of our reporting, as we typically

ICV

RevPAR SMEs

T&T UNWTO

Revenue per Available Room Small and Medium Enterprises Travel and Tourism United Nations World Tourism Organization

play the role of silent investors and exert almost no day-to-day control.

Appendix C: Management Committees Management

Developments

Asset Management

Investment

Values

HR

Fortnightly

Monthly

Fortnightly

Fortnightly

On invitation

On invitation

Chair: ECO, Dep: CFO, Secretary: Hd BP

Chair: ECO, Dep: COO, Sec: Planning Coordinator

Chair: ECO, Sec: AM Coordinator

Chair: ECO, Sec: AM Coordinator

Chair: VC Chairperson Sec: VC Member

Chair: CPO Sec: HR Manager

Membership: COO, CPO, VP AM, VP CS, VP EA

Membership: CPO, AM, VP BS, RCM, VP CA

Membership: CFO, AM

Membership: CFO, Inv Manager

Membership: VC Members

Membership:

Implementation of Corporate Objectives

Project Review and Best Practise Sharing

Asset Performance review

JV Status Review

Review of Initiatives & Issues

HR Matters for Level B9 to E18

2nd Sustainability Report | 80 - 81

Appendix D: Materiality Assessment

Appendix E: Summary Table of Key Performance Indicators

Omran’s materiality assessment guides the content of the sustainability report by identifying high-impact topics that are

The following table summarizes Omran’s performance on 30 different indicators.

of high concern to interested parties. To improve credibility and utility of this framework, Omran plans to engage a greater number of its stakeholders participate in the assessment process in the future. Top areas include indirect economic impacts, employee satisfaction, and local communities.

1. Total Infrastructure Investment

Omran (2013)

Very Material

2 1

3

Influence on Stakeholder Assessments and Decisions

Somewhat Material

7

12

6 4

9 24

20 18

23 31

36

34 41

43

47

11

2010

2011

2012

2013

21

28

40 39

44

35

25

38 45

49

46

6

7

8

7

3. Number of Tourism Assets Managed

#

10

10

8

8

4. Number of Joint-Venture Investments

#

9

10

11

11

5. Local Procurement

OCEC

%

10%

73%

49%

Other Operations

%

10%

32%

31%

40

134

6. Number of SMEs Supported

# OMR

50,000

70,000

41,240

50,000

#

79

102

112

120

Ratio

10%

18%

12%

9%

As % of Executive Management

%

0%

0%

0%

16%

As % of all managers

%

4%

6%

7%

15%

As % of total workforce

%

24%

26%

31%

27%

As % of Executive Management

%

90%

90%

90%

100%

As % of total workforce

%

76%

67%

71%

72%

As % of Executive Management

%

0%

0%

0%

0%

As % of total workforce

%

20%

17%

28%

22%

13. H ours of Employee Training

Total Workforce

#

3,432

5,460

1,646

3,846

Per employee

#

43

54

23

33

14. Cost of Employee Training

Total Workforce

OMR

30,870

93,720

122,674

135,196

Per employee

OMR

391

928

989

1,146

7. Total Amount Spent on Community Investments

Workforce & Human Capital Development 8. Total Workforce 9. Employee Turnover Rate

10. Female Workforce

50

7,241,703 15,641,469 33,973,217 30,485,101

#

13 10 15 17

OMR

2. Number of Ongoing Development Projects

5 8

16

22

30 27

37 33 42

14

19 29 26

32

48

Reporting Boundary*

Economic

Material Matrix Least Material

Unit

Significance of Impacts 11. Omani Workforce

1 - Indirect Economic Impacts

26 - Water

2 - Employee Satisfaction

27 - Transport

3 - Local Communities

28 - Biodiversity

5 - Preservation of Heritage

29 - Supplier Assessment for Labour Practices

6 - Employment

30 - Economic Performance

7 - Procurement Practices

31 - Investment Agreements

4 - Occupational Health and Safety

32 - Supplier Human Rights Assessment

8 - Products and Services

33 - Customer Health and Safety

9 - Constructing LEED Certified Buildings

34 - Labour Practice Grievance Mechanisms

10 - Overall Environmental Spending

35 - Grievance Mechanisms for Impacts on Society

11 - Materials

36 - Environmental Grievance Mechanisms

Contractor Relations and Health & Safety

12 - Corporate Communications

37 - Assessment

13 - Corporate Governance

38 - Compliance

15. Number of work-related fatalities

#

0

1

0

14 - Energy

39 - Security Practices

16. Total number of man-hours (millions)

#

16.5

5.5

9.3

15 - Anti-corruption

40 - Customer Privacy

17. Number of Lost-Time Injuries

#

0

1

0

16 - Emissions

41 - Forced of Compulsory Labor

18. Lost-time injury rate (LTIR)

Ratio

0.00

0.04

0.00

17 - Compliance

42 - Market Presence

18 - Diversity and Equal Opportunity

43 - Human Rights Grievance Mechanisms

19. Number of Fire Drills

#

4

6

18

19 - Supplier Environmental Assessment

44 - Equal Remunerations for Men and Women

#

5%

10%

0%

0%

20 - Supplier Assessment for Impacts on Society

45 - Labor/Management Relations

20. Number of significant suppliers, contractors, and other business partners that have undergone human rights Screening

21 - Anti-competitive Behaviour

46 - Child Labour

22 - Non-discrimination

47 - Freedom of Association and Collective Bargaining

21. Significant suppliers identified as having significant risk for incidents of child labor

#

0

0

0

0

23 - Effluents and Waste

48 - Product and Service Labeling

#

0

0

0

0

24 - Training and Education

49 - Public Policy

22. Significant suppliers identified as having significant risk for incidents of forced or compulsory labor

25 - Compliance

50 - Indigenous Rights

12. Youth Workforce (30 & under)

* = Omran Head Office; = Hospitality Assets; = Developments; = Investments. NB: As an administrative entity, the Omran head office has a number of staff on its payroll that work on for the company’s hospitality assets, Developments, and Investments. Projects and properties falling under each category as listed on page 18

2nd Sustainability Report | 82 - 83

Appendix E: Summary Table of Key Performance Indicators (continued)

Domestic Occupants

Omanisation

Hospitality Assets

Hospitality Assets

Hospitality Assets

Total GHG (Tonnes of CO2e)

Reporting Boundary*

Unit

GHG

2010

2011

2012

2013

Environment

20.4k

23. Greenhouse Gas Emissions (CO2e)

Tonnes

254

378

468

302

Indirect (Scope 2)

Tonnes

477

540

668

530

Total

Tonnes

730

918

1,136

832

Gasoline

Litres

39,525

139,800

172,976

111,851

Diesel

Litres

0

0

0

0

Direct

GJ

3,097

4,616

5,712

3,693

indirect

GJ

2,002

2,266

2,807

2,224

Total

GJ

5,099

6,882

8,519

5,917

m3

626

617

718

716

24. Vehicle FuelConsumption

25. Energy Consumption

Direct (Scope 1)

26. Water Consumption

kg

150

150

200

200

28. Total Waste Recycled

%

10%

20%

30%

30%

29. Number of LEED Projects

#

5

5

7

9

OMR

0

0

0

0

30. Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

21.8k

Total Omani Employment 1,580

64.4k 44.7k

13.8k

1,433

1,382

2012

2013

973

28.6k 12.4k

2010

27. Total Waste Produced

21.4k

Total Number of Omani Guest Nights

2011

2012

2013

Hospitality Assets

2010

2011

2012

2013

Hospitality Assets

GHG per Guest Night (kg of CO2e)

122

2010

2011

2011

Hospitality Assets

Omani Occupancy Rate

Omani Employment Rate 32%

28% 156

2010

44%

41% 34%

21% 137

2012

112

11%

2013

2010

2011

2012

2013

2010

2011

2012

30%

2013

* = Omran Head Office; = Hospitality Assets; = Developments; = Investments. NB: As an administrative entity, the Omran head office has a number of staff on its payroll that work on for the company’s hospitality assets, Developments, and Investments. Projects and properties falling under each category as listed on page 18

Appendix F: Summary Performance of Hospitality Assets Water

Waste

Energy

Occupancy

Assets

Hospitality Assets

Hospitality Assets

Hospitality Assets

Hospitality Assets

Hospitality Assets

Total Water Consumption (m3) 1.2m

1.2m

Total Waste Disposed (Tonnes)

1.3m

Total Electricity Consumption (kwh) 21.8

2,372 2,037

0.9m

22.9

Average Number of Rooms Sold Daily

Number of Operating Assets

23.7 7

15.0

1,586

5

4

5

803

2010

2011

2012

2013

Hospitality Assets

Water Consumption per Guest Night (Litres)

2010

2011

2013

Hospitality Assets

Waste per Guest Night (kg)

2010

2011

8.6K

8.0K

12.2 4.8K

2011

2012

2013

13.1

12.2

2012

2013

Hospitality Assets

Electricity per Guest Night (kWh) 161

10.6K

2010

2012

128

231

260

303

2010

2011

2012

399 2013

Hospitality Assets

59.0% 38.9%

120

78.7

2012

2013

2010

2011

2012

2013

2010

2011

2013

Available Rooms (Daily) 698

ADR

2012

Hospitality Assets

64.0 50.3

2011

2013

70.5

41.4%

7.1

2010

2012

Economic Performance (OMR) 85.1

43.5%

2011

Hospitality Assets

Total Occupancy Rate

143

2010

2010

30.6

30.7

2011

2012

1,028

815

394

RevPAR 26.5 2013

2010

2011

2012

2013

2nd Sustainability Report | 84 - 85

Appendix G: GRI Index

Disclosure

Level

Location/Commentary

3. Report Parameters (continued) Disclosure

Level

Location/Commentary

3.6

Boundary of the report

Fully

Report Boundary on page 78, Omran’s Activities on page 18, and Summary Table on page 81.

3.7

State any specific limitations on the scope or boundary of the report

Fully

Report Boundary on page 78, Omran’s Activities on page 18, and Summary Table on page 81.

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Fully

Report Boundary on page 78 and Omran’s Activities on page 18.

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

Fully

Our Approach to Data on page 78.

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.

Fully

Minor changes have been made in figures for our total infrastructure investment (see footnotes on pages 16). Due to conversion errors in the 2013 report, figures for GHG and energy have been corrected in this report (indicators #23, #24, and #25 in Appendix E).

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Fully

Reporting Approach and Parameters on page 78.

3.12

Table identifying the location of the Standard Disclosures in the report.

Fully

GRI Index on page 84-91.

3.13

Policy and current practice with regard to seeking external assurance for the report.

Fully

Omran’s sustainability reports are not currently assured by third parties.

STANDARD DISCLOSURES PART I: Profile Disclosures 1. Strategy and Analysis 1.1 1.2

Statement from the most senior decision-maker of the organization.

Fully

CEO’s Message on page 10

Description of key impacts, risks, and opportunities.

Partially

CEO’s Message on page 10 and Governance on page 23

2. Organizational Profile 2.1

Name of the organization.

Fully

Our Company on page 16.

2.2

Primary brands, products, and/or services.

Fully

Our Company on pages 16-17 and Atana on page 72.

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Fully

Governance on page 22 and Management Committees on page 78. For a list of Omran’s Developments, Hospitality Assets, and Investments, see pages 18 and 19.

2.4

Location of organization’s headquarters.

Fully

Headquarters on page 16.

2.5

Number of countries where the organization operates.

Fully

Our Company on pages 16 and 17.

2.6

Nature of ownership and legal form.

Fully

Our Company on pages 16 and 17.

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/ beneficiaries).

Fully

Omran exclusively serves the Oman tourism market. It customers/beneficiaries include hotel operators, guests, the general public, and development partners.

See page 18 for a geographic breakdown of operations.

4. Governance, Commitments, and Engagement

2.8

Scale of the reporting organization.

Partially

Reporting Approach and Parameters on page 78 and Omran’s Activities on page 18.

4.1

Governance structure of the organization

Fully

Governance on page 23 and Workplace Diversity on page 44.

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

Fully

The future direction, structure, and ownership is being review by the Board of Directors. However, no significant changes have yet been made to Omran.

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

Fully

Board of Directors on page 24.

4.3

Fully

For a year-on-year overview of Omran’s Developments, Hospitality Assets, and Investments, see page 19.

For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

Omran has a two-tier board structure. For more information, see Board of Directors on page 24.

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Fully

Board of Directors on page 24. As the sole shareholder, the government can relay direction to the board and appoint/ remove any member of the Board.

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance.

Fully

Board of Directors on page 24 and Executive Management Team on page 25.

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Fully

Ethical Conduct and Anti-Corruption on page 26 and Board of Directors on page 24.

4.7

Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

Fully

See Board of Directors on page 24.

As appointments/removals to the highest governance body are determined in a closed manner by the sole shareholder (the government), Omran does not take part in determining process for consideration of candidates to the Board.

2.10

Awards received in the reporting period.

Fully

Awards and Accolades on page 27.

3. Report Parameters 3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

Fully

Omran reports on the basis of a calendar year.

3.2

Date of most recent previous report

Fully

About this Report on page 8.

3.3

Reporting cycle

Fully

Omran reports on an annual basis.

3.4

Contact point for questions regarding the report or its contents.

Fully

Contact Information on page 8.

3.5

Process for defining report content.

Fully

Materiality at Omran on page 22 and Materiality Assessment on page 80.

2nd Sustainability Report | 86 - 87

Appendix G: GRI Index (continued)

Disclosure

Level

Location/Commentary

STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs) Disclosure

Level

Location/Commentary

Disclosure on Management Approach (EC)

4. Governance, Commitments, and Engagement (continued)

4.11

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance.

Partially

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

Fully

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

Fully

Our Values on page 20 and Ethical Conduct and Anti-Corruption on page 26.

Executive Management Team on page 25.

Omran conducts environmental impact assessments for all its prospective projects. These assessments weigh known and unknown risks for a consideration that allows for a precautionary approach to new construction projects.

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

Fully

Governance on page 23.

4.13

Memberships in associations and/or national/ international advocacy organizations in which the organization.

Fully

Governance on page 23.

4.14

List of stakeholder groups engaged by the organization.

Fully

Omran has engaged the stakeholders listed in Our Stakeholders on page 21.

4.15

Basis for identification and selection of stakeholders with whom to engage.

Fully

The list of stakeholders is identified by the communications department and is reviewed annually. Over the course of time, and as Omran’s sustainability program matures towards the new G4 standard, the company will look to identify more rigorous approaches to engaging key stakeholders.

4.16

4.17

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Economic performance

Fully

Direct Economic Impact of Investment on page 33.

Market presence

Fully

Direct Economic Impact of Investment on page 33.

Market presence

Fully

Indirect Economic Impact on page 35.

Materials

Fully

LEED Building at Omran on page 55.

Energy

Fully

Energy Consumption 59 and Energy Conservation on page 57.

Water

Fully

Water Consumption on pages 60 and 61

Biodiversity

Fully

Ecosystem Protection on page 57.

Emissions, effluents and waste

Fully

GHG Emissions on page 58, and Waste Management on pages 30 and 35.

Products and services

Fully

About Omran on page 12.

Compliance

Fully

Governance on page 23.

Transport

Fully

Environmental risks related to transport are not identified as being material to Omran’s operations.

Overall

Fully

Environmental Management at Omran on pages 55.

Employment

Fully

Our Workforce on pages 43, 44, and 45

Labor/management relations

Fully

Our Workforce on page 43.

Occupational health and safety

Fully

Creating a Safe Environment on page 45.

Training and education

Fully

Employee Training & Development on page 45.

Diversity and equal opportunity

Fully

Workplace Diversity on page 44.

Equal remuneration for women and men

Fully

Workplace Diversity on page 44.

Investment and procurement practices

Fully

Spending Local on page 35.

Non-discrimination

Fully

Creating a Respectful Environment on page 46.

Freedom of association and collective bargaining

Fully

Workplace Diversity on page 44.

Child labor

Fully

The risk of child labor is not identified as a significant to Omran’s operations.

Prevention of forced and compulsory labor

Fully

The risk of forced and compulsory labor is not identified as a significant to Omran’s operations.

Disclosure on Management Approach (EN) Board of Directors on page 24.

Fully

Fully

For the purposes of the 2013 sustainability report, Omran has engaged employees and individuals from the hospitality, construction, and tourism industries.

Omran plan to increase this engagement to occur more frequently than on an annual basis.

Aspects

4.10

Fully

Disclosure on Management Approach (LA)

Aspects

4.9

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Disclosure on Management Approach (HR)

Materiality at Omran on page 22 and Materiality Assessment on page 80.

Aspects

4.8

Aspects

STANDARD DISCLOSURES PART I: Profile Disclosures

2nd Sustainability Report | 88 - 89

Appendix G: GRI Index (continued)

Disclosure

Level

Location/Commentary

STANDARD DISCLOSURES PART III: Performance Indicators Disclosure

Level

Location/Commentary

Market presence

Disclosure on Management Approach (HR) (continued) Security practices

Aspects

Indigenous rights

Assessment

Remediation

Fully

Fully

Fully

Fully

Omran has a number of policies and dedicated staff to ensure the highest level of security for all employees and persons conducting business with Omran.

Not applicable. Oman does not have indigenous peoples. For information on Omran’s interaction with local populations, see DMA on Local communities below.

A number of procedures for investigations and manager vigilance are detailed Omran’s code of Conduct to ensure continual assessment and awareness of incidents of misconduct.

A number of procedures for corrective action are detailed in in response to misconduct within Omran’s code of Conduct.

Disclosure on Management Approach (SO)

Aspects

Local communities

Economic

Fully

Our Stakeholders on page 21 and Community Investment and Sponsorship on page 46.

Corruption

Fully

Ethical Conduct and Anti-Corruption on page 26.

Public policy

Fully

Anti-Competitive Behavior on page 26.

Anti-competitive behavior

Fully

Anti-Competitive Behavior on page 26.

Compliance

Fully

Board of Directors on page 24

EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Fully

Spending Local on page 35 and Supporting Omani Entrepreneurs on page 36.

EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Fully

Workplace Diversity on page 44.

Fully

Indirect Economic Impact on page 35.

Indirect economic impacts EC9

Understanding and describing significant indirect economic impacts, including the extent of impacts.

Environmental Energy EN3

Direct energy consumption by primary energy source.

Fully

Energy Consumption on page 58 and Case Study: Green Building at Jabal Akhdar on page 57.

EN4

Indirect energy consumption by primary source.

Fully

Energy Consumption on page 58.

EN6

Initiatives to provide energy-efficient or renewable energy based products and services.

Partially

LEED Building at Omran on page 55.

Total water withdrawal by source.

Fully

Water Consumption on page 60 and Case Study: Green Building at Jabal Akhdar on page 57.

Water EN8

Emissions, effluents and waste EN16

Total direct and indirect greenhouse gas emissions by weight.

Fully

GHG Emissions on page 58.

EN22

Total weight of waste by type and disposal method.

Fully

Waste Management on page 62.

Total environmental protection expenditures and investments by type.

Partially

Community Investment and Sponsorship on page 46

Disclosure on Management Approach (PR) Customer health and safety

Aspects

Product and service labelling

Fully

Fully

As Omran does not have many customerfacing operations, customer health and safety is not identified as a significant to Omran’s operations.

Product and service labelling is not identified as a significant to Omran’s operations.

Overall EN30

Social: Labor Practices and Decent Work Employment

Marketing communications

Fully

Atana on page 72.

LA1

Total workforce by employment type, employment contract, and region, broken down by gender.

Fully

Our Workforce on pages and 42 and 43.

Customer privacy

Fully

Not applicable to Omran.

LA2

Fully

Our Workforce on pages and 42 and 43.

Compliance

Fully

Omran’s legal team works to ensure continual compliance with laws and regulations in the Sultanate.

Total number and rate of new employee hires and employee turnover by age group, gender, and region.

LA3

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Fully

Not Applicable. Omran does not hire on a part-time basis.

2nd Sustainability Report | 90 - 91

Appendix G: GRI Index (continued)

Disclosure

Level

Location/Commentary

Fully

Omran paid no fines or sanctions for noncompliance with laws and regulations in 2013.

Fully

Omran faced no incidents for noncompliance with laws and regulations concerning marketing communications in 2013.

Fully

Nine of Omran’s developments are pursuing LEED certification. As of the end of 2013, the status of the certification applications for the Jabal Akhdar and Khasab resorts were still pending. For more information, see LEED Building at Omran on page 55.

Compliance Disclosure

Level

Location/Commentary

SO8

Fully

None of Omran’s employees are covered by collective bargaining agreements.

Employees have the opportunity to raise concerns and recommendations via the Values Committee.

Social: Product Responsibility

Labor/management relations LA4

LA7

Percentage of employees covered by collective bargaining agreements.

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

Fully

Creating a Safe Environment on page 45 and Contractor Relations on page 46.

Fully

Employee Training & Development on page 45.

Fully

Workplace Diversity on page 44.

Fully

Omran has a salary and remuneration ratio of 1:1 for all staff on its payroll.

Fully

Contractor Relations on page 46.

Fully

Creating a Respectful Environment on page 46.

Fully

Contractor Relations on page 46

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Marketing communications PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes

Training and education LA10

Average hours of training per year per employee by gender, and by employee category.

Diversity and equal opportunity LA13

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

CRE8

Equal remuneration for women and men LA14

Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

Social: Human Rights Investment and procurement practices HR2

Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

Non-discrimination HR4

Total number of incidents of discrimination and corrective actions taken.

Child labor HR6

Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

Construction and Real Estate Sector Supplement

Social: Society Corruption SO3

Percentage of employees trained in organization’s anti-corruption policies and procedures.

Fully

Ethical Conduct and Anti-Corruption on page 26.

SO4

Actions taken in response to incidents of corruption.

Fully

Not Applicable. There were no reported incidences of corruption during the year.

Type and number of sustainability certification, rating and labeling schemes for new construction, management, occupation and redevelopment.

2nd Sustainability Report | 92 - 93

Appendix H: GRI Level Check

Appendix I: References i

“Value of sustainability Reporting: A study by

EY and Boston College Center for Corporate Citizenship,” (paper, 2014), 4, ED 0114,

World Travel & Tourism Council, WTTC Travel & Tourism Economic Impact 2014: Oman (World Travel & Tourism Council, 2014), 1. vii

http://www.ey.com/Publication/vwLUAssets/EY_-_ Value_of_sustainability_reporting/$FILE/EY-Value-of-

Ibid., 10.

viii

Sustainability-Reporting.pdf (accessed March 11th, 2014). ii

Ibid., 9.

x

Ibid., 11.

xi

Ibid.

xii

Ibid.

Ibid., 1.

Andrew Jeffreys and Peter Grimsditch, ed., The Report:

Oman 2014 (UK: Oxford Business Group, 2014), 242. iii

ix

World Travel & Tourism Council, WTTC Travel

& Tourism Economic Impact 2013: Oman (World Travel & Tourism Council, 2013), 3. iv

Ibid., 11.

xiii

v

Robert G. Eccles, Ioannis Ioannou, and George

Bertelsmann Stiftung, BTI 2014 - Oman Country Report. Gütersloh: Bertelsmann Stiftung, 2014.

Serafeim, “The Impact of Corporate Sustainability

xiv

on Organizational Processes and Performance” World Tourism Organization, “Tourism and Climate

(working paper, July 29, 2013), 1, ED 12-035,

xv

http://papers.ssrn.com/sol3/papers.cfm?abstract_

Change,” (Online Brochure, December 2011),

id=1964011 (accessed March 11th, 2014).

http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/ docpdf/climatechange.pdf (accessed on March 12, 2014).

vi

World Tourism Organization (UNWTO), Oman Water Society, “About Oman,”

“UNWTO Tourism Highlights: 2012 Edition,”

xvi

http://mkt.unwto.org/sites/all/files/docpdf/

http://www.omanws.org.om/about-oman.php

unwtohighlights12enhr.pdf (accessed March 11th, 2014).

(accessed March 12, 2014). xvii

Ibid.

In line with Omran’s sustainability policy, the paper we have used for this report is Lenzing Impact. It is recycled paper produced from 100% recovered fibre.

Manufactured without optical brightening agents and chlorine bleaching.

High whiteness is achieved thanks to a special converting process for recovered fibre.

Phone: +968 24 391111, Fax: +968 24 391112 www.omran.om