Wednesday 3 October 2012

Affordable variety for local travelers

With just under 3 million people Oman qualifies as a small country. As a comparison it has just a bit more inhabitants than Paris and bit less than Berlin.  In spite of its small size the domestic and regional tourism  is vital for Oman for a number of reasons: a) its remote location relative to Europe, b). it's highly seasonal foreign demand (due to weather) and c) it's niche character as a destination.

What is the best way to engage the Omanis and expat residents to travel more around the country? My call would be: the affordable variety. Now what the heck is that?  For instance a network of 8-15 interesting historic hotels, inns and guest houses located in historic and culturally interesting locations.

I am thinking about renovated and converted forts,  converted fishing villages with beach clubs, mountain vacation villages, desert camps (there are a few already). Destinations hotels in themselves around the country offering a critical mass of nice places to go for long week-end and short holidays (Dar Al Dhiyafa's). And most importantly they should all be different with a separate story to tell.  Hotels and guesthouses of 15-40 units (rooms) with limited service but still up to the standards of 3 star hotels with breakfast and all you can eat buffet dinner (an attraction on its own).

An example of a converted Pousada
In order to make such an initiate viable the rates should be affordable for an average Omani family. Therefore conversion budgets should be low, using existing structures. Staff should be not more than 8-15 for a location. Most of the operational overhead costs should be shared, so a common operator should be established that creates a joint reservation platform (online and call center), with shared sales & marketing function,  and other corporate services (accounting, legal, finance etc.)

There is nothing new in this though, other countries like Portugal have done this long time ago and their experience can serve as a good example. This chain of historic hotels, guest houses and mansions is called Pousadas de Portugal and can be checked out here. (Pousada means Inn in Portugese)

5 comments:

  1. Great idea RE the common operator - should be goverment controlled in order to prevent private owners from destroying the market by dropping standards to rock bottom in order to maximise short-term profit. The hotel in Ghaba is a prime example - plenty of passing trade, but look at the state of the place. Why would anyone want to stay there ? Common operator can also exercise price control for the same reason, to create a sustainable market.

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  2. a common 'back end' provider will allow small hotels to compete assuming the 'back end' works - plenty of local examples where the 'back end' is antiquated in government owned entities - many hotels in Oman are currently government operated (with far more coming up) there is a regional tendency of major cabals to dominate a sector if its privatized/set up by the government with little trickle down benefit to the national population . Omran are currently supporting local entrepreneurs set up and market a business perhaps a similar mentoring could be done in the hospitality business (with a focus on local staff rather than expat)

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  3. Normally I would advocate for independent operators when it comes to small hotels with personality, but in this case emphasis is on efficiency and control, as pointed by Blewyn.

    RE incubation: definitely, could be one way to go but only with the thought that one day they should be on their own...which is not an easy sell over here...

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  4. that assumes that government operations will provide that efficiency rather than a private entrepreneur

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  5. When I said independent I meant non affiliated to an intl hotel brand that usually is an expensive deal for the hotel owner.

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