36 per cent rise in Omani staff in hospitality sector

The number of Omanis in the hospitality sector has witnessed a significant growth of 36.8 per cent in the last 10 years.

While the annual rise of employees in the sector has been 6.8 per cent in the past five years, Omani employment in the sector increased 12. 2 per cent during the period.

In 2016, the relative share of Omanis employed in the sector reached 29.2 per cent as against 47.8 per cent in 2005.

“The area that saw most growth in terms of Omanisation was at two-star hotels where it tripled during the period, and one-star hotels and guesthouses, which was close to doubling,” says a report by National Centre for Statistics and Information (NCSI).

According to the report, the total number of employees working in the sector reached 12,441 in 2016, up 12.6 per cent from 11,054 in 2015. Of the total, Omanis formed just 29.2 per cent, or 3,639 in number compared with 8,802 or 70.8 per cent expatriates.

However, the number of Omanis working in three-star hotels decreased by 5.6 per cent.

“This has been identified as a challenge by employers in the hospitality sector as they struggle to find Omanis with the skill sets required,” says an NCSI report.

Education and training is also an issue if the government hopes to change how Oman views hospitality and encourage them to seek careers in the industry, adds the report.

According to the report, 51.2 per cent or 6,375 of the total workforce in the sector is working in Muscat Governorate. While 15 per cent or 1,866 were employed in Dhofar, other governorates each averaged only around 3.8 per cent.

At the same time, the total revenue generated from hotel activity reached RO 230.8 million during the period.

Of this total, 43.2 per cent revenue came from five-star hotels, 26.6 per cent from four-star hotels, 12.8 per cent from three-stars, 9.4 per cent from two-star hotels and 7.9 per cent from other kinds of accommodation.

According to the report, 59.1 per cent of revenue in 2016 came from room rent, 22.2 per cent from sale of food and 12.4 per cent from the sale of beverages.

Additionally, revenue generated by five-star hotels in the food and beverage categories was twice as much as any other category of hotel.