Oman Economy Hotels-Market Gap Research | Colliers

• Oman's Travel and Tourism GDP is forecasted to increase at an annual growth rate of 6-8% from 2013 to 2017 signifying the rapid anticipated development of tourism which will be underpinned by the government's commitment to the industry.
• Oman continues to develop as a tourist destination by investing in large scale projects- primarily in Muscat- which contribute to building the "Oman Brand."
• The majority of economy hotels in Oman are either locally branded or unbranded, many of which are not purpose built and of a limited size. Due to the fragmented nature of the market, hotel apartments and guest houses tend to compete with the economy hotel market, as there is a lack of differentiation between the two products from a consumer standpoint.
• The announced forthcoming supply of hotels across Oman only consist of 4-star and 5-star properties which will serve to widen the existing gap in the market for branded economy hotels. The strength of an international brand is visible in the local market in which internationally branded 3-star hotels often generate higher average rates than unbranded 4-star hotels.
• Based on the Colliers thorough investigation and econometric analysis for the period 2013-2017, the Muscat market could potentially absorb an additional 985 economy hotel rooms over and above forthcoming supply.

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