PRESENTATION PREPARED FOR IRC INTERNATIONAL CONFERENCE DUBAI, DECEMBER 2014 Dr. Alexandrina Maria Pauceanu STRATEGIES FOR IMPROVING THE PERFORMANCE OF FIRMS OPERATING IN OMAN TOURISM INDUSTRY

INTRODUCTION Tourism is the second major industry in Oman, after oil and gas industry. The industry has been developing (15% annual increase) due also to tourists ‘ preferences for warm and exotic places. The government has set plans & strategies to support local investors and firms in the field.

Research methodology It is a descriptive/qualitative research study A detailed analysis of the performance of Oman tourism industry. Research information and data from Ministry of Tourism, Center for Statistics, books & articles, internet, etc. 8 executive directors of highly performing firms operating in different sectors of tourism industry were interviewed.

The results of the research Tourism is constantly under change due to changing trends and customers’ preferences Firms operating in tourism should align their activites & management strategies to trends and consumer preferences. The government efforts in the past five years has boosted the tourism The indicators used for the interview: government investments, challenges faced in the industry, strategies to improve the tourism sector

SWOT analysis of tourism industry in Oman- Part I Strenghts: Very secure area, no threats of terrorist attacks Good temperature throughout the year as compared to other Gulf countries Beautiful coastal line along with the mountains which is very rare in Gulf countries Khareef season in summer when the population from the Gulf countries are migrating in Dhofar region for its refreshing weather Good hotel and restaurant infrastructure Young demographic – almost half of the population is under 25 years Economy is solidly based and able to support investments in tourism sector Weaknesses: Language barriers Lack of good public transportation system Difficulties in obtaining work visas for workers from outside Oman Strict work regulations and conditions for expats Lack of short-term training courses for the workers in tourism industry Locals prefer government jobs instead of private sector Lack of marketing and promotion channels Lack of local specialized work force Lack of hospitality concept between the locals Lack of a wide range of tourism products Conservative country system Lack of diversity in economy Small domestic market High staff turnover Lack of direct international flights from Dhofar Region

SWOT analysis of tourism industry in Oman- Part 2 Opportunities: The Omanisation process Better management of cultural and natural resources Interest from international investors Increase of interest and demand from international tourists to visit exotic places Plenty of historical places, providing growth opportunity for tourism Intensive promotion of the country from the Ministry of Tourism, opening offices in different countries and good marketing strategy (“Oman - Beauty has an address ”) International airport construction in Dhofar region. Threats: The Omanisation process Lack of environmental monitoring and active measure for protection Risk of social conflict between tourists and local values, especially in very conservative area Risk of very rapid growth The Omani riyals strictly paired with US dollar ( 1 omani riyal equals 2.60 USD, fixed exchange rate), there is a risk that dollar weakness will lead to imported inflation

Conclusions of the research Tourism is a major contributor to the economic development of the country. Barriers which prevent foreign workers access to jobs should be removed High employees turnover and the need to implement active HR policies to prevent it. Many touristic operators in the sector operate independently and rarely consult with their peers in the industry Touristic operators should conduct peer audits amongst themselves & work as a team

Thank you for your attention!