Identifier
Created
Classification
Origin
05MUSCAT1442
2005-09-25 12:40:00
UNCLASSIFIED
Embassy Muscat
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS MUSCAT 001442
SIPDIS
STATE FOR NEA/ARPI
E.O. 12958: N/A
TAGS: ECON EAIR MU
SUBJECT: THE INN CROWD
REF: MUSCAT 1199
UNCLAS MUSCAT 001442
SIPDIS
STATE FOR NEA/ARPI
E.O. 12958: N/A
TAGS: ECON EAIR MU
SUBJECT: THE INN CROWD
REF: MUSCAT 1199
1. (U) Summary: A sprawling new Muscat resort complex slated
for a soft-opening in November shoulders high expectations
for raising Oman's international profile as a tourist and
conference center destination, adding jobs to the economy,
and alleviating a winter shortage of hotel rooms and
conference space. The complex's opening also coincides with
an effort to market Oman increasingly as a year-round tourist
destination. End Summary.
--------------
COMPLEX NEARS COMPLETION
--------------
2. (SBU) Emboffs recently called on Shangri-La Business
Development Manager Mila Taneva to tour the construction site
of the Barr Al-Jissah Resort complex, located about ten
kilometers southeast of Muscat. The beach-front development,
consisting of three hotels managed by Shangri-La Resorts,
represents an approximately USD 181 million investment by the
Oman-based Zubair Corporation (owned by Mohammed al-Zubair,
economic advisor to the Sultan) and the Government of Oman.
Shangri-La plans the soft opening for the 306-room Al Waha
and the 198-room Al Bandar hotels in November 2005, with a
formal opening in January 2006. (Note: The November opening
fulfills Mohammed al-Zubair's pledge to the Sultan to open
the complex by Oman's National Day on November 18. End
note.) Both hotels will cater to leisure and conference
travelers, with the Al Bandar hotel sporting a 700-seat
ballroom. The site also contains an outdoor amphitheater, to
which the complex hopes to draw the famous acts that already
commonly play in Dubai. The 180-room, "six-star" Al Husn,
which intends to focus exclusively on the luxury segment,
will open in early 2006.
--------------
SIGNIFICANT IMPACT EXPECTED
--------------
3. (SBU) The resort complex figures to have a significant
impact on Oman,s tourism industry. Taneva noted that the
complex itself will generate up to 1,200 jobs, with 65% of
the positions filled by Omani nationals. She further
indicated that approximately 4,000 suppliers and service
providers would also benefit from the complex,s operations.
Taneva said that Shangri-La has forecasted a strong first
year occupancy rate of 60%, with a target occupancy rate of
80% after five years. She also remarked that the company has
projected an average visitor stay of 7 days, with each
visitor spending between 60-150 rials (154-387 USD) per day,
depending on the hotel. Increasing Muscat's inventory of
five-star hotel accommodations by 60%, Barr Al-Jissa will
alleviate room and conference space shortages currently
prevalent the peak winter months.
--------------
RAISING OMAN'S PROFILE
--------------
4. (SBU) Muscat,s hotel industry is hopeful that the resort
complex, and the planned construction of another one just
south of the Barr Al-Jissah, will contribute to Oman,s
campaign to turn itself into a premium resort and conference
center destination. Walid Harouni, until recently general
manager of the Muscat Intercontinental Hotel, believes that a
strong opening for the complex would indicate early success
in attracting more travelers to Oman, and ultimately benefit
all hotels. He further hoped that the complex's ability to
raise Oman's profile will assist area hotels in filling rooms
during the slower summer months, where monthly occupancy
rates generally dip below 50%. His comments were echoed by
the GM of the Muscat Grand Hyatt who told another Emboff that
Barr al-Jissah will allow him to redirect clients when he is
fully booked. "Last year, all we could do was to send them
away," he explained. "Now we can keep them in Oman instead
of sending them to another country." The general manager of a
leading car rental firm told us in confidence that Muscat
Municipality will soon ditch its annual wintertime "Muscat
Festival," which has failed to pull in outside tourists, in
favor of a larger scale summer marketing program that will
offer cultural happenings every night. Until now, Muscat has
been content to cede the summer tourist season to the
southern port of Salalah, with its monsoon-cooled climate and
verdant hills that draw big crowds from throughout the
region, including Muscat residents keen to escape the summer
heat.
BALTIMORE
SIPDIS
STATE FOR NEA/ARPI
E.O. 12958: N/A
TAGS: ECON EAIR MU
SUBJECT: THE INN CROWD
REF: MUSCAT 1199
1. (U) Summary: A sprawling new Muscat resort complex slated
for a soft-opening in November shoulders high expectations
for raising Oman's international profile as a tourist and
conference center destination, adding jobs to the economy,
and alleviating a winter shortage of hotel rooms and
conference space. The complex's opening also coincides with
an effort to market Oman increasingly as a year-round tourist
destination. End Summary.
--------------
COMPLEX NEARS COMPLETION
--------------
2. (SBU) Emboffs recently called on Shangri-La Business
Development Manager Mila Taneva to tour the construction site
of the Barr Al-Jissah Resort complex, located about ten
kilometers southeast of Muscat. The beach-front development,
consisting of three hotels managed by Shangri-La Resorts,
represents an approximately USD 181 million investment by the
Oman-based Zubair Corporation (owned by Mohammed al-Zubair,
economic advisor to the Sultan) and the Government of Oman.
Shangri-La plans the soft opening for the 306-room Al Waha
and the 198-room Al Bandar hotels in November 2005, with a
formal opening in January 2006. (Note: The November opening
fulfills Mohammed al-Zubair's pledge to the Sultan to open
the complex by Oman's National Day on November 18. End
note.) Both hotels will cater to leisure and conference
travelers, with the Al Bandar hotel sporting a 700-seat
ballroom. The site also contains an outdoor amphitheater, to
which the complex hopes to draw the famous acts that already
commonly play in Dubai. The 180-room, "six-star" Al Husn,
which intends to focus exclusively on the luxury segment,
will open in early 2006.
--------------
SIGNIFICANT IMPACT EXPECTED
--------------
3. (SBU) The resort complex figures to have a significant
impact on Oman,s tourism industry. Taneva noted that the
complex itself will generate up to 1,200 jobs, with 65% of
the positions filled by Omani nationals. She further
indicated that approximately 4,000 suppliers and service
providers would also benefit from the complex,s operations.
Taneva said that Shangri-La has forecasted a strong first
year occupancy rate of 60%, with a target occupancy rate of
80% after five years. She also remarked that the company has
projected an average visitor stay of 7 days, with each
visitor spending between 60-150 rials (154-387 USD) per day,
depending on the hotel. Increasing Muscat's inventory of
five-star hotel accommodations by 60%, Barr Al-Jissa will
alleviate room and conference space shortages currently
prevalent the peak winter months.
--------------
RAISING OMAN'S PROFILE
--------------
4. (SBU) Muscat,s hotel industry is hopeful that the resort
complex, and the planned construction of another one just
south of the Barr Al-Jissah, will contribute to Oman,s
campaign to turn itself into a premium resort and conference
center destination. Walid Harouni, until recently general
manager of the Muscat Intercontinental Hotel, believes that a
strong opening for the complex would indicate early success
in attracting more travelers to Oman, and ultimately benefit
all hotels. He further hoped that the complex's ability to
raise Oman's profile will assist area hotels in filling rooms
during the slower summer months, where monthly occupancy
rates generally dip below 50%. His comments were echoed by
the GM of the Muscat Grand Hyatt who told another Emboff that
Barr al-Jissah will allow him to redirect clients when he is
fully booked. "Last year, all we could do was to send them
away," he explained. "Now we can keep them in Oman instead
of sending them to another country." The general manager of a
leading car rental firm told us in confidence that Muscat
Municipality will soon ditch its annual wintertime "Muscat
Festival," which has failed to pull in outside tourists, in
favor of a larger scale summer marketing program that will
offer cultural happenings every night. Until now, Muscat has
been content to cede the summer tourist season to the
southern port of Salalah, with its monsoon-cooled climate and
verdant hills that draw big crowds from throughout the
region, including Muscat residents keen to escape the summer
heat.
BALTIMORE