Is there any impact of the week-end shift on tourism in Oman?

Every major policy decision has a macroeconomic impact.  These impacts can be modeled fairly accurately.  Econometrics uses the so called input output tables to quantify the impact of certain decisions.  Such modeling can be applied to assess for instance the cost benefits of hosting the Olympics in a city, that of introducing VAT or other taxes, or the impact of a visa policy on tourism. The macroeconomic implications of changing the week-end from Thursday Friday to Friday Saturday can also be assessed.  If you have the right economic and statistical data, by applying a proper modeling it is actually possible to estimate the increase/decrease of total economic output, that of the GDP and job creation as well.

I am sure there have been a lot of considerations given to the recent week-end change and the benefits far out weight the costs especially in the context of SMEs and job creation in the private sector.

Let’s have a lighter look on the possible impacts on tourism and the hotel sector in Oman.  It is important to note that I have not performed any input-output modeling on this; therefore I am not in the position to give any quantitative impacts.  My intention is only to identify some soft considerations. It remains to be seen if they will turn valid or not on the short and medium term. Perhaps some entrepreneurs and hoteliers can work towards making full use of the advantages and mitigate the potential draw backs.

1. The yielding week-end: from May 1^st there will not be a spread of domestic week-end demand for hotels between Thursday-Friday and Saturday. Leisure demand will peak on Friday and Saturday creating more occupancy on these days and the ability for hoteliers to drive (increase) the rate and yield better. This logic will apply for short haul airlines fairs as well, more people wanting to travel at the same time. (+)

2. Busier Dubai: Perhaps by having the same week-end we won’t experience a calm-working-day-Dubai on Thursdays any more. This perhaps will encourage some people to spend the week-end at a domestic destination as opposed to up in the “city of life”. (+)

3. More alignment with sender markets: I know tourism and especially hotels are a 24/7 business but still, sales and marketing teams, agencies etc. are having their regular working hours. With the new week-end they will be able to work one more day in line with the agencies of the main European sender markets of Oman. This would have some positive impact in service and perhaps in volume as well. (+)

4. Less net holidays: By aligning the private and public sector holidays, at least based on recent articles, public sector workers will benefit from less statutory days off than before. This could have a negative impact on domestic tourism, hence local hotels restaurateurs.  This impact could be slightly balanced off by the foreign corporate hotel demand on those working days which initially were holidays. (-)

5. More Omanis in tourism sector: Another one on the positive side would be the initial intention of the measure, namely to present private sector jobs as more competitive and to attract more local labor to such businesses, like hotels. (+)

6. The one extra day when shifting: a once off benefit would have to do with “transition Thursday” being a day off which could result in a slight positive impact for domestic tourism, balanced off to some extent by less hotel demand from corporate guests on that particular day.

Overall I estimate the shift will not have a massive impact on tourism and hotels, but if any it will have more positives than negatives.

Any other consequences you can think of?

Picture source, slightly modified.