(MENAFN- Muscat Daily) The recent announcement from the government on opening up the aviation sector to more private sector involvement, along with the planned development and upgrade of six airports – for which the government has promised an investment of US$6.1bn – shows that aviation in Oman is set to grow at a speed not witnessed before.
These developments are likely to boost the already robust growth of supporting and allied markets in the country.
According to the World Travel & Tourism Council, the tourism industry currently represents about seven per cent of Oman's total GDP, or US$5.3bn. This figure is predicted to grow by 5.5 per cent per year, surpassing US$9.7bn by 2023.
Travel and tourism sector investment is also expected to increase, from less than US$1bn, or 5.2 per cent of total investment in 2013, to over US$1.9bn, or 6.5 per cent of total investment, by 2023.
Aviation investment is expected to cost US$6.1bn over five years, totalling nearly 40 per cent of all spending in the eighth Five-Year Plan.
While eight per cent of the funds are earmarked for the completion of the four regional airports, 92 per cent is allotted for the two main airports in Muscat and Salalah.
With over 8mn passengers per annum at Muscat airport, the growth at the flagship airport has been averaging 16 per cent over the past couple of years now.
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''We expect that to continue into the future, and maybe even grow stronger when the new airport comes up. The new airport is designed for 12mn passengers, but it is easily extendable to 24mn, 36mn, and even 48m ultimately. There is no shortage of capacity planned, and we are confident it will support aviation growth for many years to come,'' Vic Allen, acting CEO, Oman Airports Management Company (OAMC) was quoted recently by a global online media content provider.
Salalah Airport too has witnessed significant gains in annual traffic over the past ten years, up from about 200,000 in 2003, to an expected 700,000 in 2013. With a new terminal and air traffic control facilities, the airport will be equipped to service the needs of international tourists and business travellers.
''One of the most interesting things noted recently is how people have become aware of Salalah. We have started to get other carriers to fly into Salalah, in addition to what we do ourselves. Between Muscat and Salalah in 2013, we will carry 500,000 people. A lot of these are Omanis, but we are seeing a tremendous increase in interest from places like the UK, France and Germany. I think in ten years time Salalah will almost be looked upon as the Maldives of the Gulf. It has huge tourist potential,'' Wayne Pearce, CEO, Oman Air, was quoted as saying.
The four new regional airports in Sohar, Duqm, Ras
al Hadd, and Adam will make
the airline industry more strong. Combined, they will have the capacity to handle almost 2mn passengers each year. Sohar will enable multimodal transport; Duqm will boost industrial shipping activities on the coast; Ras al Hadd will usher in eco-tourism to its area and Adam will service the interior of the country. These developments are likely to create many opportunities for supporting businesses.
''The government has recently made an announcement about opening up the aviation sector to more private sector involvement, and it is a very timely initiative. With the new airports under construction, it will be a huge opportunity for private sector development or joint venture type development. There are a large range of secondary industries supporting the airport, for example, logistics, warehousing, and hotels. Historically, these types of industries have not been centered around the airport. There is a huge potential for that, and we are looking forward to providing opportunities for businesses to setup that way in the next few years,'' said Allen.
Khalfan Said al Shueili, readiness GM, OAMC, said at the World Route Development Forum held in Las Vegas in October that the existing Muscat and Salalah airports are being upgraded with the construction of large new ‘state of the art' terminals to replace existing facilities and a large amount of associated infrastructure, including a second runway in Muscat, new control towers and ATM facilities, are also under construction.
''These new facilities, particularly in the case of Muscat and Salalah, will represent a quantum leap in terms of existing facilities. This is both in terms of size (the new Muscat Terminal will handle up to 12mn people per annum in the first phase and at over 350,000sqm, it is over seven times larger than our existing terminal building) and technology. We have adopted many of the latest technological advancements seen within the industry for the benefit of both our customer airlines and the travelling public,'' he said.
The challenges, Shueili said, for the airport operator of putting all this in place and turning these facilities operational is immense in a country with a relatively young aviation industry. ''Recruitment and training of new staff to operate these facilities to world-class standards is a major challenge and has already commenced.''
Allen said that OAMC is running at 90 per cent Omanisation, and for the new airports it was planning to reach a similar figure as well.
''This requires a huge amount of recruitment and training of young people, which has already commenced. We hope to be completely ready for the new airports. That is the biggest
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