Zoom In: See The Bigger Picture
Hyperlocal Tourism: An Authentic Experience Wednesday 26 April - 7.00pm
Moderated by HH Sayyid Dr. Adham Al Said Assistant Professor, Economics College of Economics & Political Science Sultan Qaboos University The Panelists Gillian Taylor Director, Business Development Oman Convention & Exhibition Centre
Introduction Inside Stories is a series of seven informal, highly-interactive evening discussions, organized by Ithraa, Oman’s inward investment and export development agency, and held at The Public Authority for Civil Aviation Head Office in Al Hail North. Offering invaluable learning and networking opportunities, Inside Stories is a leading meeting place for Oman’s business people, scientists, educators, manufacturers, healthcare professionals, civil servants, farmers, urban planners and environmentalists to gather and discuss business ideas and solutions that inspire positive change.
Mazen Khoury Investment Director, Tourism & Culture Oman Investment Fund
Thanks to our Strategic Partner - BP Oman, the Wednesday 26 April Inside Stories focused on Hyperlocal Tourism: An Authentic Experience. With a focus on highlighting and promoting hyperlocal tourism and its role in Oman’s growing and diversified economy, key issues discussed at the event included:
Eric Walters Director Hud Hud Travels Khalid Al Haribi Deputy CEO for Operations Riyada
Inside Stories is supported by:
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Motivations for travel Conserving natural assets Empowering Oman’s craft industries Employment opportunities Tourism education and talent Community involvement The importance of connecting visitors with what is local, authentic and unique
Tourism Numbers Oman’s tourism sector is increasingly attracting international investment and returns on investments in the sector remain high. Global hotel chains are expanding across Oman, recognizing investment potential and committing millions of dollars in new projects over the next few years to meet increased demand from international tourists.
Ambitious Plans Oman’s Ministry of Tourism has announced ambitious plans to attract more than 5 million international visitors a year by 2040, up from 3 million visitors in 2016. Tourism currently contributes approximately 2.8% to the sultanate’s GDP and the government aims to raise that figure to 6%.
In 2016, three million tourists touched down in Oman and according to the National Center for Statistics and Information (NCSI) 1,311,349 of the total arrived from neighbouring GCC countries, 297,628 from India, followed by 137,170 British tourists and 72,566 German travellers.
Under the new, US$35bn investment plan, the government predicts the tourism sector will employ more than 500,000 people by 2040. Big Business According to the World Travel and Tourism Council data, in 2015 tourism directly created over 107 million jobs and supported directly and indirectly a total of 284 million jobs, equivalent to one in 11 jobs on the planet. By 2026, these figures are expected to increase to 136 and 370 million jobs respectively representing one in nine of all jobs worldwide. It’s big business.
Another 217,153 travelers visited the sultanate via cruise ships ranking Germans, Britons, Italians, Spanish and Americans as the top five tourists, according to NCSI. A total of 137,060 guests were accommodated in Oman’s hotels, reflecting an 8.1% increase and a 66% occupancy rate, compared to 126,844 guests during December 2015 when the occupancy rate was 62.3%.
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Hyperlocal Tourism Zoom In: See The Bigger Picture
Eric Walters, Hud Hud Travels
Audience participation
Top-flight panel
Sharing Economy With technology and innovation propelling today’s sharing economy, there are many new employment opportunities in tourism that, if well regulated to safeguard quality, a level playing field and the rights of consumers and employees, can make a large contribution to job creation.
Jobs & Talent However, to take full advantage of Oman’s capacity to create tourism jobs, we must invest more in tourism education and training, create public policies that stimulate travel and tourism job creation, include micro, small and medium-sized enterprises (MSMEs) in the sultanate’s tourism value chain and bring Oman’s public sector, business community and educational institutions closer together.
MSMEs, particularly those working in Oman’s creative industries space, can certainly play a role in helping tourists realize their expectations, as well as support the local hotels they stay in and the airlines they travel on.
Today, Oman’s tourism sector still suffers from a gap between education and skills and knowledge needs. The resulting shortage of local talent with future-proof skills will continue to dent the economy and limit job creation prospects. This gap can be bridged with policies that support more opportunities for appropriate industry experience, such as internships and apprenticeships, along with specialized education and training. Crucially, Oman’s tertiary institutions must work more closely with the tourism industry and government to address the sector’s talent challenges.
If developed effectively and managed efficiently over time, hyperlocal tourism has the potential to accelerate Oman’s economic growth and job creation. The Discerning Traveller What is really interesting is the emergence of the more discerning visitor, the traveller who is looking for more than just the tick-box attractions, passport stamps and Instagram photos. The Hyperlocal Experience People travel for a variety of reasons. But one thing that unites all travellers is the desire for a unique experience. They are after genuine, holiday experiences that are memorable. This demand for the hyperlocal is clearly on the rise. Whether it is climbing Jebel Akhdar, crossing Rub’ al Khali, windsurfing off Masirah, relaxing on a Salalah beach or shopping in Nizwa souq, tourists want an authentic experience. In fact, there is a large number of travellers who are looking for offbeat locations to get the local, unique real-life experience, a market estimated at US$140 billion globally. We believe, there is plenty of scope for Omani businesses, particularly tourism MSMEs to tap into the hyperlocal trend.
MSMEs & Innovation Beyond the direct employment within businesses that serve tourists, the impact of tourism spreads well beyond the traditional definition of tourism. Many industries exist to support firms within the sector, for example, advertising agencies, accounting firms, florists, graphic designers, jewellers to local farmers. Indeed, the sector’s wide reach also stimulates entrepreneurship and growth of Oman’s MSMEs. In fact, MSMEs are tourism’s main innovators and sources of economic diversification, as well as being major job creators across sectors.
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Hyperlocal Tourism Zoom In: See The Bigger Picture
Panel responding to questions
Questions from the floor
Mazin Khoury talking hyperlocal tourism and investment opportunities
Community Focused How can we work with Omani communities to achieve an authentic hyperlocal tourism experience, improve the sector’s sustainability and realize benefits for all concerned?
One of the key elements of Oman’s sustainable hyperlocal tourism offer is that the views and aspirations of local communities are taken into consideration
• Buy locally produced goods, produce and services. • Employ local people. • Provide information to tourists on Oman’s cultural and natural assets and offer tips on how they can ensure that their behaviour respects these assets. • Encourage tourists to purchase Oman-made products and support local service providers. • Offer tourism internships to Omani students residing in the local area and/or provide advice on tourism job applications, interviews and careers. • Incorporate Omani produce as part of your product experience. • Purchase materials needed for construction and maintenance from Omani sources. • Offer discounted access to your tourism product to local colleges, women’s associations and sports clubs. • Liaise with the appropriate authorities when designing new tourism facilities or improving existing ones, to ensure they can be fully enjoyed by people with disabilities.
Putting People First One of the key elements of Oman’s sustainable hyperlocal tourism offer is that the views and aspirations of local communities are taken into consideration. Indeed, when a community is involved in the direction of tourism development it is more likely to become an active partner and take a keen interest in the development of the destination. While the economic benefits of tourism are increasingly appreciated by communities across Oman, some of the less identifiable benefits as not so well understood. There are many benefits for a hyperlocal tourism business in becoming a respected and valued partner of the local community and economy and this includes:
Protecting the Environment & Cultural Heritage • It is imperative that Oman’s natural assets and cultural heritage be protected. In this regard, we need action to create, enhance and market sustainable hyperlocal tourism destinations and specific Oman-made products. • The private and public sector need to work closely to plan and manage hyperlocal tourism activities in order to ensure equitable development across Oman’s different regions as well as preserve the sultanate’s biodiversity and cultural values. • We need to invest in measures to protect and mitigate potential impacts stemming from hyperlocal tourism activities. • Increase awareness of Omani residents and tourists about the fragility of the sultanate’s natural environment and resources.
• Supporting local community development can generate positive media publicity and improve the community’s local and international reputation. • Providing benefits to local people can support national conservation goals by offering alternative, eco-friendly career opportunities. • Contributions to community development can enhance approval from visiting tourists and others who are concerned about the local environment and the community’s general well-being. • Boosting economic ties with local communities and businesses supports the sustainability of Oman’s tourism destinations.
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Hyperlocal Tourism Zoom In: See The Bigger Picture
Oman’s Craft Sector In shops and souqs across Oman, it is not uncommon to find souvenirs personalised with Oman’s name, flag or other insignia, which are not made in the sultanate. The ability of international suppliers to provide inexpensive, generic products is impacting and diminishing business opportunities for Oman’s craftsmen, both threatening the livelihoods of local artisans and the viability of the sector. More importantly this practise, if allowed to continue could undermine the sustainability, value and relevance of Oman-made arts and craft, as well as inherent skills and art forms, contributing to an eventual loss of Omani heritage and traditions. We must recognise the important role and contribution of Oman’s craft sector to the sustainability of the sultanate’s hyperlocal tourism industry, its role in job creation and contribution to social and economic growth. • • • • • •
Oman-made craft products reflect the sultanate’s history, culture and tradition and are inextricably linked to the hyperlocal tourism experience of the community from which it originates. Shopping is a vital component of any holiday and tourists want to buy products that are meaningful to their destination. Tourism goods imported to Oman from another country call in to question the authenticity and quality of the destination and the competitive edge is lost. We need to focus efforts on helping Omani artisans strengthen their ties to the hyperlocal tourism sector. Are Omani artisans constrained by limited information about buyer interests, consumer standards and purchasing practices? Do they require assistance with innovation in product design, marketing and PR? It is clear we need to generate market opportunities for Omani artisans, craft enterprises and culturally linked products.
Ideas to Promote Oman Made • Encourage local hotels, tour operators and airlines to include information on buying Oman-made crafts and other products or services in welcome packs and inflight magazines. • Provide information to tourists on buying local along with guidelines on pricing and advice on appropriate bargaining tactics. • If locally made chocolate, soap, shampoo, candles and fragrances are available in hotel rooms then provide information on the producer and where guests can buy the items. • Offer maps, so tourists can easily find their way around Oman, as well as information on local taxi services and the newly-launched Mwasalat bus service. • Hotels could offer a paid for voucher scheme whereby guests enjoy dinner at a local restaurant once a week. This would help boost the revenue of local businesses, as well as offer tourists a different culinary experience. • Offer retail space to Omani artisans. Organize a weekly craft fair. • Provide business advice and support to young Omani tourism MSMEs. • Work with local suppliers to support new product development with, for example, a workshop on understanding international tourist needs – helping give visitors to Oman what they want. • Support Oman-wide cultural and business initiatives such as festivals and conferences • Incorporate the Brand Oman logo and guidelines into your marketing collaterals. • Offer green holiday tips to tourists, so they know how they can make a positive difference to Oman while they are out and about. Procurement of Oman Made Goods Rather than repeat the usual procurement procedures, if new table linen, cushions, candles, soap, fragrances, staff uniforms, bed linen, flowers, food, or entertainment are required why not work with Omani MSMEs suppliers to create bespoke items to give the hotel a truly authentic feel?
About Ithraa Founded in 1996, Ithraa is a government-run, ISO and Investor in People certified inward investment and export promotion agency. We provide a range of support services and information to help domestic and international investors set up in, and export from, Oman. For press enquiries please contact: Sajda Al Ghaithy, Media Director, Ithraa +968 24 62 33 79 | sajda@ithraa.om
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