Oman- Strong rial hits tourist inflow to sultanate from Eurozone
Date
8/12/2015 6:08:31 PM
(MENAFN- Muscat Daily) Muscat-
Oman is losing ground with inbound tourists from countries that have the euro as their currency. The strength of the rial against the euro has made Oman increasingly expensive for visitors from these countries.
The second quarter of 2015 has registered a fall in tourist numbers hotels and travel agencies have acknowledged.
'We have seen a decline in occupancy in the second quarter compared to the same period last year. We have witnessed a 15 per cent decline across the board. The main factors behind the decline are associated with the euro's devaluation which causes flights and hotel rooms to be more expensive for the European traveller' an official from Grand Hyatt Muscat told Muscat Daily.
Lakshmi Narayanan senior manager inbound tourism Bahwan Travel Agencies said 'If we compare this year to the last year there definitely has been a drop in the number of tourists coming into the country by 20 to 22 per cent. The discounts offered by hotels work out to be expensive for our partner concerns in Germany and the Netherlands.
'The number of queries and bookings has gone down by 25 per cent in the past two months.'
Narayanan said this is a
worrying trend and not in line with Oman's vision on tourism development. 'These are the travellers who spend while in the country. We cater to tourists mostly from Germany the Netherlands Italy France Belgium and the UK.'
The Chedi Muscat's Board of Directors' report for second quarter of 2015 states 'The company anticipates current trend in occupancy as the average room rate is reduced due to fall in value of euro and oil price.'
The Board of Directors' report for the second quarter for Ubar Hotels and Resorts (formerly Interior Hotels Company) which manages Golden Tulip Nizwa and Park Inn-Muscat states 'As the half year ended on June 30 2015 the company has generated a consolidated revenue which is 11 per cent lower than last year. The consolidated net profit also declined by 31 per cent in comparison to last year.'
This report further states that overall business scenario has not been very conducive for the Oman hospitality industry due to the trouble brewing in the region and especially across the border in Yemen due to which there has been a 'major drop in the arrival of leisure travellers to the country'.
It adds 'Also the devaluation of the euro has resulted in Oman becoming an expensive destination for tourism and travellers are diverting to other countries especially Egypt Iran and Jordan which are cheaper and once again gaining popularity among European travellers.'
Hoteliers and travel agents hope the regional political scenario will soon stabilise and Oman will see a good number of travellers coming by the start of next session in October.