- Infrastructure Development; Oman government is projecting a rise in the tourism sector by 5% annually; this calls for steepened acceleration in the development of infrastructure. Tourism contributes majorly to the improvement and development of infrastructure in any given economy. This is due to the comfort and efficiency that tourists always seek to establish in their destinations. The Oman airways are considering to double daily flights back and forth England, this move is aimed at increasing the number of tourist visiting the economy. The Oman government has also allocated $50 billion to the development and expansion of the road and railways transport network within the economy. This contributes to more tourists visiting the country due to the established transport network in the economy; whereas, it also serves as an advantage to the economy due to the infrastructural development.
- New Goods and Services; tourism in Oman is a major boost for the economy. Development of new goods and services within the economy contributes majorly to value addition towards the economy. Oman is considering to introduce a passenger terminal worth $1.8 billion. This public good will see into it that, the annual number of passenger increases from six million to twelve million. In addition, the swift expansion and development of the hospitality sector is also another value addition good and service towards the economy of Oman. The Oman government is working on establishing an increased development of hotels and restaurants within the economy. This is being hastened through allowing private investors to establish their businesses within the economy of Oman; the development of the Crowne Plaza in Duqm, the Holiday Inn in Muscat, Western Premier Hotel in Muscat and Niche resorts by Omran in Khasab. This attests to the increase in provisions of new goods and services within the economy of Oman.
- Productivity Growth/Capital Investment; the amount of capital deepening that the Oman government considers investing on tourism depends relatively on the amount of influx from this sector. In the year 2012, Oman government witnessed a 5% growth in the tourism sector. It is also projected that there is a 5.2% to 10.5% growth in this sector come the year 2022. On the other, the foreign exchange earnings are also another critical factor that should be considered. Due to the disparity in currencies, any tourist paying a visit to this economy earns must convert to the local available currency. This, therefore, strengthens the local currency.
- Employment level; the improvement and advancement of the Oman’s tourism sector contribute majorly to more people being employed. Growth in this sector means that more workers will be needed to accommodate the rising number of tourists. This also helps to beat the alarming level of unemployment within the economy.
- Living standards, living standards are greatly improved due to the increased injection of revenue into the economy. The government can consider diversifying surplus amount to the poor families within the economy thus alleviating poverty.
- Economic leakages; these are major the hidden costs to tourism. A direct income to a given economy is calculated by subtracting taxes, wages and profits from the parent payment. These deductions are known as leakages. The reason for this is that these amounts always go back to the private sector rendering the economy with little or no income. Therefore, a broader approach should be developed that considers quantifiable approach to hefty income towards the economy and avert leakages.
- Pollution; there is plenty of pollutions towards the environment and natural resources from the tourism activities. This is due to some of the heinous activities that the tourist indulge themselves in. this is witnessed in the coastal regions of Oman where tourists pollute the environment anyhow without considering the sustainability of conserving it.
- Culture shock; the westernization effect is taking toll among the locals. This is due to the difference in culture identification and practice.
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