Growth in tourism sector

By Amal Ragab — MUSCAT — Top executives of tourism companies in the Sultanate expressed the confidence that the tourism sector will witness moderate growth during this year despite recession in the global economy. One of the major challenges that the sector faces is the steady increase in the number of hospitality facilities and a continuous trend in opening of new hotels, which entails limited benefits from the ongoing promotion for the sector’s infrastructure projects and the support offered by the Ministry of Tourism.
Financial performance reports of hotel and tourism projects at Muscat Securities Market (MSM) refer to a rather limited impact on the companies’ activities during the summer season and Ramadhan in terms of (decline in) number of tenants and this reflected poorly on the projected revenues of the said companies during the third quarter of this year compared to the corresponding period last year. Oman Hotels Company said that it has been able to attract customers despite the increase in number of competing hotels and hotel flats.
Over the past three years, the company continued to modernise all its facilities, which helped gain client loyalty and attract more customers. Also, efforts made to maintain the competitiveness of prices, coupled with quality service, helped generate more revenues this year as compared to 2011. A projected decline in the revenues of the company is due to impinge the profit/results of the third quarter due to slow activity during the month of Ramadhan, compared to the results of the first and second quarters, according to the company’s executive.

Gulf Hotels Company said in the report of its board of directors that it achieved revenues of RO 4,515,000 and composite net profits of RO 1,454,000. Aggregate revenues of the company during this period went up by 10 per cent, while operational profits increased by 9.3 per cent. Net profit grew by 8.7 per cent compared to the corresponding period last year. The positive results are attributed to a rise in revenues due to a high rate of occupancy of rooms, as well as an increase in revenues of catering and beverage at the hotel during the first half of this year.

Salalah Beach Resort Company registered a RO 1.7 million increase in revenues and net profits of RO 301,000. The company forecast good performance during the second half of this year upon the implementation of “contract rentals” during November. The half-yearly report of Global Hotel Management Company revealed that the company achieved total revenues of RO 5,804,000 as against RO 4,861,000 during the corresponding period in 2011. The company achieved net profits (after deduction of income tax) of RO 1,777,000 as against RO 1,493,000 during the corresponding period last year.

Al Batinah Hotels Company posted quite encouraging half-yearly results indicating profits of RO 115,390 compared to RO 26,693, an increase of 332.3 per cent. Sahara company mentioned in its half yearly report that it achieved permanent growth in its business for the second year in a row at a rate of 42 per cent (Net profits of RO 5 million, after calculating taxes of RO 941,000 compared to 824,000 last year).

This article would have had some very different positive numbers. If only?