Omani hotel revenue takes $122m hit
The first two months of 2020 saw major drops compared to 2019
The Sultanate of Oman’s hospitality sector has started to see the impact of COVID-19 as total revenue and occupancy rates have both dropped in the first two months of 2020 compared to the same point last year.
According to sister publication Arabian Business, revenue fell by 6.3% to RO43.9 million (US$122m) compared to RO36.9m ($122m) in 2019. Figures from the National Centre for Statistics and Information (NCSI) show that occupancy rates at the end of February fell by 7.8% to 62.5% compared to the same point last year.
Oman has set itself the same goal as many other Arab countries – to move its economy away from oil and towards other industries. As part of the Oman Vision 2040, a rich and diverse hospitality industry is paramount for the Sultanate’s mission. COVID-19, however, has thrown a curveball to an already struggling industry in Oman.
While occupancy in 2019 rose in Oman, RevPAR decreased 6.4% from $84.45 to $78.05. ADR saw a 7.3% decline reaching US$129.7 in 2019. As a result of the decline in revenue, GOP PAR also dropped 14.8% in 2019 according to TRI.
Throughout 2019, Omani hotels received 1.77 million guests and generated total revenue of RO229.5m ($597m).