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
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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.
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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.
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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
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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.
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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
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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
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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%
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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