Can Oman succeed in tourism? (page 1 of 3)

As the rest of the Gulf sweltered in the punishing summer heat, Salalah, the quirky capital of Omans southern Dhofar region, bathed in the cool rain of the monsoon between June and September.

While temperatures surge past 50¡ C in many Gulf Cooperation Council (GCC) countries, the mercury in Salalah hovers around a comfortable 25¡ C. As a result, Oman sees Salalah as a key component in developing its tourism industry. Yet many see obstacles looming here and elsewhere in the country Ð despite the raw potential of this historic land.

The Muscat government says that it is now aiming to raise the sectors contribution to the national GDP to three percent by 2020, up from the current 0.3 percent. That 10-fold increase would raise tourism revenues to 130 million rials ($333 million). By regional standards, of course, that's just a drop in the bucket: consider that Dubai took in $380 million last year from airport duty-free sales alone.

Indeed, ask anyone in the industry about tourism in Oman, and talk inevitable turns to the UAE. And there are a number of very good reasons for making the comparison.

In 2002, Oman attracted some 1.2 million foreign visitors; about 700,000 came from the GCC states. And of those 700,000 tourists, a staggering 85 percent of them came from the UAE. For all the talk in Muscat and Salalah about bringing in European tourists, the fact remains that the bulk of the sultanates visitors come from a lot closer to home - and, of those, huge numbers are simply driving across the border for a very short-term stay.

But is that a sign of the industry's weakness or its potential strength? According to many industry professionals, the only logical route for any serious expansion of Omans tourism sector is by touting it as a short hop from Dubai. In that case, the contrast between honkytonk Dubai and the sleepy, slow-moving sultanate could easily become a selling point.

Oman has so much more to offer than the other Gulf states in terms of culture and history, says Lore Koening, director of sales and marketing at the Chedi Muscat, a year-old luxury destination. Oman does'nt have to resort to newly built versions of the olden days. It can offer visitors the real thing. Koeing makes a good point.

Oman offers an authentic Arabian experience that's not easily available elsewhere in the region. But here's where things get complicated: in its drive to promote tourism, the government has given the green light to vastly ambitious projects like The Wave, an $837 million resort just west of the capital.

Its clear that billion-dollar tourism projects are going to inevitably detract from the authenticity of the Omani experience. So what's the right balance? Muscat models. The Chedi Muscat is probably a good place to start. The hotel is relatively small Ð with just 151 rooms Ð and also relatively pricey Ð with rates ranging from $195-480 per night.

What makes the Chedi a possible model for Oman is not just size, though. Its also a matter of style Its a very Omani-based design, points out Koening. Its very symmetric and very open. The hotels elegant styling does'nt hurt, either, and its modernist lines are clearly going to appeal to upscale tourists Ð if and when they ever hear about the hotel or, for that matter, the country.