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Operating Review 2013 Oman Tourism Development Company

omran.om


Oman Tourism Development Company

His Majesty Sultan Qaboos bin Said


Foreword

Open the page to see some highlights of 2013

Omran’s pivotal role in developing tourism infrastructure, investing in tourism projects, and managing hospitality assets within the Sultanate has continued to evolve year-on-year. The aim of the Omran Annual Operating Review is to provide our stakeholders with a transparent and comprehensive progress report on the projects under development, investment and management, and how the organisation is developing internally. At the same time, using a triple bottom line approach, we try to show how, as a responsible developer, Omran’s projects and initiatives have empowered our communities. The following pages aim to present a clear exposition of 2013.

In line with Omran’s sustainability policy, the paper we have used for this report is Lenza Top Recycling Super. It is recycled paper produced of 100 % recovered fibre. Manufactured without optical brightening agents and chlorine bleaching. High whiteness is achieved thanks to a special converting process for recovered fibre.


Operating Review 2013 | Introduction

Some of our 2013 highlights Developments

Oman Convention and Exhibition Centre Oman Convention and Exhibition Centre (OCEC) is a mega-project that will transform the capital and establish Oman as a regional business tourism hub. Construction of the exhibition halls started in 2013 while Omran supervised the design, tendering and construction of the whole project to ensure that it is on schedule for OCEC’s opening in 2016. Alila Jabal Akhdar Resort The eco friendly deluxe Alila Jabal Akhdar Resort will open the lush and ravishing Al Jabal Al Akhdar Mountain to travellers. By end of 2013 the resort was nearing completion to be ready for opening in 2014.

Investments

Al Baleed Resort In 2013 Omran and its joint-venture partner Musstir LLC, began construction on the five-star Al Baleed Resort, built adjacent to the ruins of the ancient city of Al Baleed, a UNESCO World Heritage site. This sustainable development, which will be managed by Anantara Hotels, Resorts and Spas, will attract many thousands of visitors to Oman’s haunting archaeological treasure. Duqm Frontier Town (DFT) Omran and Daewoo Shipbuilding & Marine Engineering Oman LLC ‘DSME Oman’ completed the first development phase of the landmark 270 hectare development Duqm Frontier Town, the first planned community in Duqm Governorate. The second phase of the project was launched during the year.

Hospitality Assets

Atana Khasab (Golden Tulip Khasab Resort) In 2013 our successful track record in hospitality asset management culminated in the creation of Omran’s own proprietary brand - Atana Hotels. The re-design and brand-transition of Atana Khasab from Golden Tulip marked a banner year for this highly successful four-star property. Crowne Plaza Duqm The four-star Crowne Plaza Duqm with distinction, in its first months in operation achieving top ranking of all IHG’s properties in Oman and winning two prestigious regional quality awards for sustainable design. Crowne Plaza Duqm has already become a vibrant community centre and the place to stay in Duqm Governorate.

Republic of Yemen


Khasab

Islamic Republic of Iran

Atana Khasab Ras Al Khaymah

Dibba

Dubai

Abu Dhabi

United Arab Emirates

Sea of Oman

Sohar

Mussanah

OCEC Muscat Al Sifah

Alila Jabal Akhdar Resort

Quriyat

Nizwa

Kingdom of Saudi Arabia

Sur Ras Al Jinz

Uwaifiya

Ras Al Jinz Scientific Centre

Oman Sultanate of

Masira

Duqm Frontier Town Crowne Plaza Duqm

Al Baleed Resort Salalah

Duqm


Operating Review 2013 | Introduction

Contents 1

introduction

07

Board of Directors

08

Chairman’s message

10

A message from the CEO

14

Management team

16

Milestones and awards

2

LEADING RESPONSIBLE DEVELOPMENT

19

Preserving our traditions, Providing for our people, Protecting our environment

21

Business Development

22

Commercial Services

23

Information and Communications Technology (ICT)

24

Quality, Health, Safety and Environment (QHSE)

25 Security 26 Sustainibilty

3

Developments

29

Oman Convention and Exhibition Centre

36

Al Irfan Urban Development

37

W Hotel

38

Alila Jabal Akhdar Resort

42

Atana Musandam

44

Al Baleed Seafood Restaurant

45

Quriyat-Sur Rest Area


Oman Tourism Development Company

4

investments

47

Jebel Sifah

48

Salalah Beach

49

Al Baleed Resort

50

Duqm Frontier Town

51

Saraya Bandar Jissah

5

HOSPITALITY ASSETS

53

Atana: A new Omani hotel brand

53

Atana Khasab

54

InterContinental Hotel Muscat

56

Millennium Resort Mussanah

57

City Hotel Duqm

57

Golden Tulip Dibba

57

Uwaifiya Rest House

58

Crowne Plaza Duqm

60

Ras Al Jinz Scientific Centre

61

Masira Island Resort

6

PEOPLE

63

Building human capital

7

Community

65

Enhancing lives

8

CONCLUSION

69

Looking forward to our year ahead

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Operating Review 2013 | Introduction

1

Introduction


Oman Tourism Development Company

Board of Directors H.E. Nasser bin Khamis Al-Jashmi Chairman of Omran Undersecretary, Ministry of Finance

Mr. Hassan bin Mohammed Al-Lawati Deputy Chairman DG of Archaeology & Museums, Ministry of Heritage & Culture

Mr. Khalid bin Saeed Al-Shuaibi Board Member DG of Organization and Commercial Relations, Ministry of Commerce and Industry

Sk. Sultan bin Mohammed Al-Mahrooqi Board Member DG of Administrative & Financial Affairs, Ministry of Finance

Eng. Abdul Qawi bin Abdullah Al-Yafai Board Member DG of Town Planning & Survey, Ministry of Housing

Eng. Khalid bin Hilal Al-Yahmadi Board Member

Mr. Harib bin Abdullah Al-Kitani Board Member

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Operating Review 2013 | Introduction

Chairman’s message


Oman Tourism Development Company

Omran was established to support the growth of Oman’s emerging tourism sector, with a directive to take over the mission critical transformation and sustainable development of our nation’s tourism infrastructure. This mandate includes planning, developing and managing tourism properties that stimulate the growth and diversification of the economy and contribute to the prosperity of our people and the communities they live in while protecting our precious natural environment. At the outset the fledgling organisation was handed a formidable portfolio of projects to execute as developer, investor and asset manager, including the landmark Oman Convention and Exhibition Centre (OCEC), the innovative Alila Jabal Akhdar Resort, as well as joint-venture mega-project investments like Salalah Beach, Saraya Bandar Jissah among others. In 2013 Crowne Plaza Duqm became fully operational, and construction of Alila Jabal Akhdar Resort and Musandam Resort reached completion, with soft openings scheduled in the first half of 2014. In addition, major tenders were awarded for the OCEC during 2013, which is on course for completion by 2016. These and other achievements during the year, including the completion of the final phase of the transformation of the former Asian Beach Games site into the Millennium Resort Mussanah have demonstrated Omran’s increasing maturity and confirmed its capacity to deliver on schedule, on budget and on multiple fronts.

Today, Omran is poised to play an even more central role in the tourism sector, with agreater focus on master planning and strategic development aimed at attracting local, regional and global investments and encouragesincreased private sector participation in Oman’s tourism industry. In 2013 the Board of Directors commissioned a study of the Company’s operations and organisational structure to ensure that Omran has the right structure and sufficient resources to take on greater responsibilities in the future. The first diagnostic phase of the study was completed at the end of the year and will be followed in 2014 with a detailed evaluation of the results and recommendations that will be implemented during the last half of the year. Omran has achieved remarkable results during 2013, moving key tourism projects forward, improving operations and the profitability of the tourism assetsit manages, while, as a responsible developer, actively supporting the growth and prosperity of our local communities and contributing to the environmental sustainability of our country. In the coming years we fully expect this dynamic organisation to become an increasingly proactive participant in the transformation of Oman that has been envisioned by His Majesty Sultan Qaboos bin Said. HE Nasser bin Khamis Al Jashmi Chairman of Omran

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Operating Review 2013 | Introduction

A message from the CEO


Oman Tourism Development Company

Omran occupies a unique place as a national developer in that we are held accountable not only for building tourism infrastructure, investing in tourism projects and managing hospitality assets but that in everything we do we must first consider the welfare of our country, the welfare of our communities, the welfare of our citizens and the welfare of our environment. These are immense responsibilities we take very seriously and have influenced every aspect of our operations from the beginning. Tourism has been identified as one of the core drivers of the diversification and growth of our economy. However, without the proactive creation of tourism infrastructure, project investments and proficient asset management in existing tourism areas and outlying parts of the country, growth in this vital sector would be very slow. Omran was established to accelerate the process of tourism development by building strategic tourism projects, investing with private sector developers in large-scale joint-venture developments in promising new areas, and managing and marketing existing tourism assets across the country to help enhance quality, efficiency and profitability. The tourism infrastructure projects we have been charged with take many years to realise but when they are completed they will change the face of our country, generate revenue for our communities, provide employment for our people and build a vital industry that will yield short and long-term benefits for our nation. This year has been marked by steady progress and continued development on multiple fronts. In 2013, we issued our first Baseline Sustainability Report to fulfil our commitment to provide stakeholders with a clear, transparent and comprehensive summary of our collective efforts to realise our mandate to make an on-going, significant and sustainable contribution to tourism development in the Sultanate. The Report was produced according to internationally recognised sustainability principles and guidelines set by the Global Reporting Initiative (GRI) and achieved an impressive Level B Rating in terms of transparency and performance disclosure, effectively ranking Omran as the most transparent developer in the region. The Report reflects the pledge we have made to the country and the people of Oman that all our major developments will comply with Leadership in Energy and Environmental Design (LEED) specifications, all assets will promote domestic tourism, and all properties will have design elements that express Omani architectural tradition in a modern context. We have seven developments in our portfolio that have achieved, or are in the process of achieving, LEED accreditation.

seven We have

developments in our portfolio that have achieved, or are in the process of achieving, LEED accreditation as green buildings

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Operating Review 2013 | Introduction

During 2013 our work on the Oman Convention and Exhibition Centre (OCEC) continued apace, with 82,171,247 Omani Riyals of tenders awarded and 66 million Omani Riyals of new consultancy and construction tenders issued. During the year we also signed a Memorandum of Understanding with Oman National Investment Development Company (ONIDCO) and Emirati developer Al Futtaim for the development within the OCEC precinct of what will be the largest shopping mall in Oman. Also in 2013 construction proceeded on site utilities and roads. In addition, detailed design and tender documentation for the Convention Centre, Banquet Building and two hotels, was completed.

This year two major projects, Alila Jabal Akhdar Resort and Atana Musandam, neared completion with soft openings scheduled for Q2 2014.

This year two major projects – Alila Jabal Akhdar Resort and Atana Musandam– neared completion with soft openings scheduled for Q2 2014. Alila Jabal Akhdar Resort will draw visitors from around the world to one of Oman’s most breath taking natural attractions and open the way for increased private sector tourism investment in Al Dakhiliya Governorate. Atana Musandam will provide visitors with much needed affordable waterfront accommodation in an area that is already a major tourist destination for its dramatic traditional heritage, spectacular coastline and stunning fjord waterways. Also in 2013, the transformation of the former Asian Beach Games site into the Millennium Resort Mussanah was fully realised with the final stage of construction completed. Other projects in our portfolio made significant progress. In January 2013 construction on the five-star Al Baleed Resort , set beside the UNESCO World Heritage site of Al Baleed, was inaugurated with completion scheduled for Q1 2015. In May 2013 Phase I of Duqm Frontier Town, the first planned community in Wilayat Duqm, was completed and delivered with planning for Phase II implemented and an Usufruct Agreement signed with Special Economic Zone Authority Duqm (SEZAD), allocating 29.2 Hectares land adjacent to Phase I for the project.


Oman Tourism Development Company

Also during 2013 work on Saraya Bandar Jissah, the vast mixed-use development located 25 kilometres southeast of Muscat, progressed. Earthworks, including excavation and reclamation and a surface water drainage system neared completion, approvals were granted, and construction tenders were issued with infrastructure works and construction scheduled for Q1 2014. In 2013 our Hospitality Asset portfolio was increased with the addition of Crowne Plaza Duqm. Omran also won Oman Construction Week Award and MEED Quality Award for Crowne Plaza Duqm’s innovative Sewage Treatment Plant. Our other Hospitality Assets under management, including Ras Al Jinz Scientific Centre, Masira Island Resort and Golden Tulip Khasab Resort, continued to perform well and showed healthy occupancy rates during the year. This can be attributed to improved management procedures, successful sales and marketing and the introduction of additional hospitality features. During the year Omran continued to realise its commitment to our communities through our successful Zaree initiative to encourage micro-enterprise for women to nurture the sustainable development of micro-business, and through the launch of ‘Musahamatee’, a philanthropic programme that allows hotel patrons to combine charitable donations with their dining and room charges.

In 2013 Omran was recognised with the Women’s Empowerment Award at the 3rd Asia’s CSR Best Practices Awards for its Zaree programme, held in Singapore. Zaree also won First Place in the Entrepreneurship Award category at Al Roya Youth Awards. We are acutely aware that the sustained success of Omran centres on motivation, hard work and professional skills of our people. During the year we streamlined procedures and clarified career path issues through the publication of a new, improved HR manual and 92% of our staff received training and career guidance from 70 training courses and 15 conferences organised throughout the year. As part of our commitment to build the capacity of our local workforce, Omran achieved a 72% Omanistion rate in 2013 and reached a symbolic milestone when the senior management team became fully Omanised. Our priority is to contribute to the sustainable development of Oman for our people and their local communities. As we mature as an organisation and as our role in tourism development evolves, our commitment to excellence in concept development, planning, implementation and project delivery continues to become stronger. This year’s annual operating review reflects this commitment and summarises our progress and achievements throughout 2013. Eng. Wael bin Ahmed Al Lawati Chief Executive Officer

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Operating Review 2013 | Introduction

Management team

Omran is led by a tight-knit team of experienced management professionals who work closely together to ensure that the company’s formidable and expanding portfolio of projects, investments and tourism assets are meticulously conceived and effectively executed. The fully Omanised management team has been dedicated to the continuous development of the organisation, deploying industry leading systems and procedures to streamline and improve performance.


Oman Tourism Development Company

Eng. Wael Al Lawati Chief Executive Officer

Eng. Nasser Al Maqbali Chief Operations Officer

Ms. Lubna Al Kharusi Chief Financial Officer

Eng. Said Al Qasmi Chief Project Officer - OCEC

Eng. Abdul Wahid Al Farsi Vice President - External Affairs

Eng. Ali Al Rabsi Vice President - Corporate Support

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Operating Review 2013 | Introduction

Milestones Sustainability Report • Launch of the first Report, ‘Creating a Sustainable Tourism Destination’ according to guidelines established by the Global Reporting Initiative (GRI), affiliated with the United Nations Environmental Program (UNEP)

• Attainment of a B level rating for transparency, performance disclosure, positioning the company as the region’s most transparent developer

Oman Convention and Exhibition Centre • Awarding of OMR 82,171,247 worth of tenders and issued new consultancy and construction tenders valued at OMR 66 million

• Signing of MoU with Oman National Investments Development Fund, Oman’s largest asset management company and Al Futtaim for the development of a super-regional mall

• Finalisation of MoU with Omantel, for the development of their state-of the art headquarters

Millennium Resort Mussanah Completion of the construction of the complex which includes a restaurant with indoor and outdoor seating, a Compass lounge, swimming pool lockers, a kids club, a fully equipped gym with male and female facilities, a women’s only spa facility, associated wet treatment areas, a relaxation lounge area, two retail shops, beach club and miniature golf course. Atana • Creation of Atana, a new four star Omran hotel brand that represents Oman’s rich traditions within contemporary hospitality context

• Omanization Rates of 100% in top management • Passed IMS Surveilance Audit to maintain ISO9001 - ISO14001 OHSAS18001

• Record of 9,368,469 man hours free from Lost Time Injury (LTI) • Setting up of a Emergency Response Team (ERT) with 18 fire wardens and first aid responders

Masira Island Resort

Integrated Quriyat-Sur Rest Area

Most profitable year on record

Construction began of the rest area


Oman Tourism Development Company

Awards Alila Jabal Akhdar Resort

Completion of 90% construction

90%

Crowne Plaza Duqm – Sewage Treatment Plant Construction Week Awards Sustainability Initiative of the Year Crowne Plaza Duqm – Sewage Treatment Plant MEED Quality Awards Water and Water Reuse Project Omran Website Oman Web Awards Silver

Atana Musandam

Alila Jabal Akhdar Resort Dossier Construction Awards and Summit Best Project Design

Zaree

Salma’s Chocolate PR Ragan Awards Employee Communication Awards

• Expansion of its services to offer authentic experience to male and female visitors • Participation at ATM 2013 Musahamatee Launch of a philanthropic programme that allows hotel patrons to make a donation directly to Dar Al Atta’a 8 hotels are currently participating Crowne Plaza Duqm The four-star hotel had a soft opening in 2013 and has already won two awards for sustainable design

Masira Island Resort Trip Advisor Recommendation Team Leader of Zaree - Iman Al Salti Travelex Oman Tourism Ambassador Awards Best Tourism Ambassador for Al Batinah and Musandam Zaree Asia’s CSR Best Practice Award Women Empowerment Award Zaree Al Roya Youth Awards Entrepreneurship Award

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Operating Review 2013 | Leading responsible development

2

Leading responsible development


Oman Tourism Development Company

Preserving our traditions

Providing for our people

protecting our environment

Omran’s mandate has been to support the development of our nation’s tourism infrastructure in a way that preserves our cultural traditions and environment while providing direct benefits to our people and our local communities. Our sustained commitment to make a genuine contribution to Oman’s economic growth and to our society informs everything we do. This means that we place the long-term benefits to the nation and to our local communities above every other consideration.

How will our projects provide sustained benefit to our local communities?

Will they provide opportunities for local businesses and SMEs?

Will the foreign direct investment provided by our project partners truly enhance our national economy and the welfare of our people?

Are we genuinely transferring skills to our people?

Will they create jobs for our people?

Are we doing everything possible to protect our environment in the work we do?

Are we providing opportunities to grow and create?

Is there anything more we can do for the communities we are engaged with?

These are questions that we ask constantly.

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Operating Review 2013 | Leading responsible development

The answers are manifest in all the work we have undertaken from the environmental best practices applied in all our projects to achieve LEED certification to our commitment to the deployment of our Local Development Policy, which ensures that our consulting, contracting, procurement and supply chain processes all prefer local businesses and suppliers, and that we are giving priority to Omani nationals when we hire. Our concentrated efforts at capacity-building and sustained community development are reflected in our abiding commitment to Omanisation, either through direct or indirect employment of Omani nationals.

Omran’s role has been to contribute to the diversification and growth of Oman’s economy

As a responsible developer and in line with development goals set by His Majesty Sultan Qaboos bin Said, Omran is contributing to the diversification and growth of Oman’s economy through the long-term sustainable development of a robust and expanding tourism sector, extending Oman’s hospitality infrastructure to regions outside the capital to encourage private sector investment in new leaisure and business tourism areas as well as build projects that protect the natural environment and the Sultanate’s rich cultural heritage. Moreover, the properties we build and manage must enhance the lives of our people and the communities they live and work in. Our aim in all that we do is to build a tourism landscape that will enhance the environment, bring new forms of revenue into our communities, create new opportunities for local businesses and provide our citizens with employment and professional development. During the year Omran projects progressed on schedule and on budget with two major development projects, the signature Alila Jabal Akhdar Resort and Musandam Resort, nearing completion with soft openings scheduled for Q1 2014. The projects and properties initiated and managed by Omran since its inception have engaged 3,013 companies, created thousands of direct and indirect jobs and pumped hundreds of millions Omani Riyals into Oman’s economy. Behind the many challenging projects under implementation are teams of dedicated professionals working to ensure that the work Omran has undertaken is delivered on schedule and according to the highest standards.


Oman Tourism Development Company

Business Development

Before any tourism development project within Omran is green-lighted, it comes under the scrutiny of Omran’s business development team. Their job is to identify and carefully analyse every proposed development idea to ensure that it is commercially feasible and in harmony with Omran’s social values and customs and the environment. The business development team studies the social and environmental implications of each project, undertakes SWOT and gap analysis, consults with stakeholders, formulates a vision and then tests the vision through a feasibility and market analysis. The studies, which cover every aspect of the tourism business, are revised until the project either passes muster or is cancelled. At this point the business development team creates a strategic plan for approved projects based on the vision, develops design concepts and conducts a financial feasibility analysis. Before handing the project over to Operations, Business Development conducts a risk analysis and creates an execution plan and delivery programme. During 2013 Omran’s Business Development team was engaged in many projects that will have a long-term positive impact on the growth of tourism in the Sultanate.

Here are just some of these A concept for developing tourism infrastructure in Jabal Shams and Mughsayl was produced and presented to the Ministry of Finance

Financing plans for the OCEC were produced and finalised an MoU for the development of a mall within the project

Omran studied the concept of setting up a heritage company for the purpose of developing, marketing and operating cultural heritage sites in Oman

An MoU was signed with an investor to develop a water park in Musannah

Concepts for entertainment features on Sawadi Island were developed

A business plan for 2014 was developed to include a study of 12 projects that will help Oman become a world-class destination for tourists

Business Development worked with the Ministry of Tourism on the development of the scope for Tourism City

Supporting SMEs: A total number of 80 SME’s were supported in 2013 through our development projects

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Operating Review 2013 | Leading responsible development

Commercial Services

Omran’s Commercial Services department is responsible for handling all commercial transactions, involving tendering, procurement and contracts management from inception to closure.

Commercial Services awarded

85

million Omani Riyals worth of contracts during 2013

During 2013 many tenders were transacted through the commercial system notably; a construction tender was awarded for the Oman Convention and Exhibition Centre Project for the construction of the Exhibition Halls, Energy Centre and the Structured Car Parking, valued at 78 million Omani Riyals. A tender was also awarded during the year for Salalah Traveller Oasis Project during Khareef season, valued at 1 million Omani Riyals, in addition to 3 major hotels tenders that were floated publically with an estimated value of 120 million Omani Riyals amongst many qualified bidders. Overall, Commercial Services awarded 85 million Omani Riyals worth of contracts during 2013 with additional tenders in process amounting to 170 million Omani Riyals. In the course of the year the department issued and awarded close to 400 LPOs amounting to 3,691,482 Omani Riyals. In addition, a new vendor registration system was set up and vendor registration certificates were created and issued. Also in 2013 Omran Commercial Services floated a tender for the first time through the government tender board e-tendering system, which will pave the way to further implementation of e-tendering within Omran. Lastly, part of systems and procedural enhancements, the Commercial team established a practice of conducting tender strategy workshops for all new medium to major tenders.


Oman Tourism Development Company

Information and Communications Technology (ICT) Omran operations are underpinned by a robust ICT platform that is constantly evolving to ensure the most streamlined and efficient delivery of all projects. During 2013 the ICT department continued to support the on-going Musandam Resort and Alila Jabal Akhdar projects in scoping, tendering and awarding IT packages, which included hard and soft IT systems, security protocols, TV/AV and telephony systems. ICT also introduced new modules to ‘Liwan’, Omran’s innovative, dedicated intranet platform, designed and launched in 2012 to bring our people closer together, break down barriers within the organisation, open interdepartmental channels of communications and provide employees with current information on Omran’s projects and activities. Also during the year ICT conducted a critical disaster recovery simulation to assess our readiness and capacity to recover data in the event of an emergency or natural disaster.

Omran operations are underpinned by a robust ICT platform that is constantly evolving to ensure the most streamlined and efficient delivery of all projects.

In April 2013, Omran’s corporate website (www.omran.om) received a silver accolade at Oman Web Awards. The recognition was for the website’s creative concept, ease of use, content structure, visual design solution and interactivity.

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Operating Review 2013 | Leading responsible development

Quality, Health, Safety and Environment (QHSE) Since its inception Omran has undertaken a continuous process of improving its Quality, Health, Safety and Environment (QHSE) systems, standards and practices to ensure that our employees and the communities they work in are safe and sound and benefitting from the projects we implement.

During 2013 Omran passed the IMS surveillance audit to maintain its ISO9001, ISO14001 and OHSAS18001 standards accreditation.

Prior to the beginning of any project Omran organises QHSE induction meetings and workshops to ensure that all potential risks and hazards are identified and incorporated into the project’s HSE plan. Every onsite worker receives an HSE induction and subsequent HSE refresher sessions. The range of subjects covered in these sessions include safe use of scaffolding and ladders and working safely at height, electrical and mechanical hazards, plant and machine use safety practices, compressed gas and welding safety, and initial fire response, among many other subjects. Sessions also include food and hygiene and H1N1 awareness, energy conservation and housekeeping. To maintain best practice amongst our workforce, consultants and contractors, Omran prepares and disseminates regular QHSE alerts that share new learnings. Regular QHSE inspections are conducted for all projects, activities and equipment to ensure rigorous onsite compliance. To keep our workforce alert and well prepared, regular mock drills are conducted on all Omran sites, relating to personal injuries, road traffic accidents, fires, falls from heights, oil or chemical spills and other scenarios. All incidents within every project are carefully investigated by Omran management to identify causes, correctives and preventive measures. Each case is authenticated and is investigated until the incident is resolved.


Oman Tourism Development Company

Security In support of the local communities we work in, we conduct regular environmental campaigns and have initiated measures to reduce noise and dust and manage fires and waste. We also implement community health and hygiene campaigns. In addition, Omran and its partners organise blood donation camps in cooperation with the Ministry of Health to support the Sultanate’s blood banks. During 2013 Omran passed the IMS surveillance audit to maintain its ISO9001, ISO14001 and OHSAS18001 standards accreditation.

WORKING Towards a secure company and a trained team

In April 2013 an Emergency Response Team (ERT) was set up to overhaul Omran’s Emergency Response System. The ERT appointed 18 fire wardens and first aid responders from Omran’s staff to provide early intervention emergency services. First responders were trained in basic fire-fighting skills, evacuation procedures, first aid and CPR. The ERT’s role is to ensure safe evacuation and to interact with emergency response authorities in the event of emergencies. Emergency drills were also conducted during the year to assess interaction with external emergency services, civil defence and ambulance responses. More emergency drills are planned for 2014 and will extend to cover Omran’s assets under management and construction sites.

2013 QHSE Record Omran’s QHSE policies and practices have yielded a sterling record for the year with its projects achieving an aggregate of

9,368,469 man hours free from Lost Time Injuries (LTIs).

Omran operates with a ‘Zero LTI’ goal, in 2013 there was not a single accident reported among the 3567 strong workforce, a record we are very proud of.

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Operating Review 2013 | Leading responsible development

Sustainability During 2013 Omran issued its first ever sustainability report under the title: ‘Baseline Sustainability Report: Creating a Sustainable Tourism Destination’. The Report was produced according to guidelines established by the Global Reporting Initiative (GRI), a network based organisation that has pioneered the development of the world’s most widely-used sustainability reporting frameworks. The GRI is an official United Nations Environment Programme (UNEP) collaborating organisation, partnering with the United Nations Global Compact and the Organisation for Economic Co-operation and Development among others. The Sustainability Report, which covers the Company’s performance from 2009 through 2012, uses 86 environmental, economic and social indicators to promote transparency and enhance stakeholder accountability. In the first report, Omran achieved a B Level Rating for transparency and performance disclosure, positioning the Company as the region’s most transparent developer. Omran’s commitment to sustainability has continually evolved through the establishment of sound and ethical operating policies, the introduction of procedures that streamline operations, and the development of integrated policy management systems. The organisation’s sustainability framework also endeavours to build an engaging and safe working environment that empowers Omanis and attracts them into the workforce, supports the local community, and minimises the environmental impact of its projects while conserving local culture and heritage.

Omran has made a pledge to the country and the people of Oman that all its major post 2011 developments will comply with Leadership in Energy and Environmental Design (LEED) specifications, all assets will promote domestic tourism, and all properties will have interiors that are a modern expression of Omani architecture. The company currently has seven developments in its portfolio that have achieved, or are in the process of achieving, LEED accreditation. In line with the Government’s Vision 2020, Omran’s sustainability framework aims to place tourism as a major economic driver in the Sultanate by creating memorable tourism destinations and experiences that build long-term benefits for local communities and the national economy.


Oman Tourism Development Company

In 2013, Omran issued its first Global Reporting Initiative (GRI) certified Baseline Sustainability Report to fulfil its commitment to provide stakeholders with a clear, transparent and comprehensive summary of its efforts to make an on-going, significant and sustainable contribution to tourism development in the Sultanate. The Report achieved an impressive Level B Rating and ranked Omran as the region’s most transparent developer.

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3 Operating Review 2013 | Developments

Developments


Oman Tourism Development Company

Oman Convention and Exhibition Centre

A Landmark Business Development Scheduled to open in Q3 2016, the landmark Oman Convention and Exhibition Centre (OCEC), is the centrepiece of Oman’s business development programme that will establish the Sultanate as a major regional venue for regional and international events. In addition to the exhibition centre (set for completion in 2015), the OCEC complex will include four hotels, a business park, retail shopping areas and residential districts. In March 2013 Omran released a study on the OCEC project conducted by Booz & Co., which projected that the project will generate 295 million Omani Riyals in local spending, and require 12,000 construction workers by 2015 when construction reaches its peak. The study estimated that OCEC will create an additional 15-18,000 permanent jobs and contribute 200-240 million Omani Riyals to the national economy by 2030. The study also concluded that by 2030 the OCEC will contribute 140-170 million Omani Riyals to GDP, 30% of this amount from tourism revenues.

In addition, OCEC’s Business Park will feature the largest gross floor area in a purpose-built corporate office building in Muscat. In 2013 work progressed on schedule and on budget with two major tenders awarded during the year.

OCEC will create between 15 - 18 thousand jobs by 2030

The completed OCEC will feature the largest fixed seating auditorium in the GCC (3,200 seats) and the largest car park structure in Oman (4,200 spaces), the country’s largest district cooling plant (32,500 refrigeration tons), the largest steel truss span (80 metres) supporting the Exhibition Halls and the largest dome in Oman (120 metre span).

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Operating Review 2013 | Developments

Tendering In 2013 OCEC team awarded a total of 82,171,247 Omani Riyals worth of tenders and issued new consultancy and construction tenders valued at 66 million Omani Riyals.

The choice of a joint venture between two Omani companies reflects Omran’s preferred status policy for Omani enterprises in the tendering process.

A consultancy services tender was awarded for the design of an 800-employee staff accommodation to house staff of the Convention Centre and development hotels. In April 2013 Omran awarded infrastructure works to Khalid Bin Ahmed & Sons (KAS) - Al Habib Joint Venture. The infrastructure works package includes building 4.4 km of single carriageway roads, 1.3 km of dual carriageway roads, 6 roundabouts, 100 metre Wadi Bridge and utilities that include 3.7 km portable and 4.1 km waste water networks, 5 km irrigation and electrical networks as well as telecommunication ducts. The time frame for completing this package is 12 months. The choice of a joint venture between two Omani companies reflects Omran’s preferred status policy for Omani enterprises in the tendering process. In June 2013 Work Package II, valued at 78,403,083 Omani Riyals was awarded to Carillion Alawi LLC. The package includes a structured car park facility for 4,200 vehicles on 3 parking levels covering a total area of 143,000 m², exhibition halls covering about 45,000 m², which can be divided into five halls with service trenches, plant rooms, and four acoustically treated vertically movable partitions to enable separation and sound isolation of each hall. This package also comprises a concourse with a glazed curtain-wall system, fully equipped with production kitchen and three cafes, hospitality suites, administration/office areas, a central landscaped courtyard and two circulation nodes connecting the concourse to the car park. Additionally, the scope will also cover the ancillary buildings, namely the Energy Centre which serves as the District Cooling Plant for the entire precinct, security screening facility, taxi amenity building, waste management building, a landscape maintenance building and electrical substation facility. The project also features a number of sustainable initiatives in conservation of energy, potable water and use of treated sewage effluent for cooling and irrigation and thus targeting Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council.


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Perspective for the new Omantel Head Quarters Perspective for the 5-star Convention Hotel

During the year, Omran awarded the construction contract for the first of two 33KV/11KV primary substations to serve the Phase I development. Additional tenders were issued for a 5-star hotel and another 4-star hotel to be awarded during Q2 2014. Finally, tenders were issued for the supply and installation of equipment for a main production kitchen facility to enable Omran to realise additional revenue from the early operation of the Exhibition Halls. Revised tender documents were also issued to Tender Board for Primary Substation no. 2, which will feed the mall and business park. During 2013, Omran pre-qualified 13 large companies or consortiums of international and local bidders for the tendering of Package III, slated to be issued in Q1 2014. Investments In September 2013, Omran signed a Memorandum of Understanding (MOU) with the government owned Oman National Investments Development Company (ONIDCO), Oman’s largest asset management company and Al Futtaim, developer of Dubai Festival City and Cairo Festival City, for the development of a super-regional mall, which, when completed, will be the largest shopping mall in Oman. Omran also reached an agreement with Oman Telecommunications Company (Omantel), the leading telecom company in the Sultanate, to construct its new headquarters in the Oman Convention and Exhibition Centre (OCEC) Precinct.

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Operating Review 2013 | Developments

Design During 2013 detailed design and tender documentation for package III (the Convention Centre and Banquet Building) and the two hotels was completed. Building permits were obtained from Muscat Municipality for both the Convention Centre and the 5-star hotel buildings. The capacity of the District Cooling Station (Energy Centre) was expanded to provide chilled water to the entire development with higher efficiency and improved return on investment. Master planning of the Business Park was completed and the architectural design development stage for the Omran headquarters building was also completed. Construction Construction of site utilities and roads within the Package V contract made significant progress during 2013, with the bridge piers and abutments completed, decking started and 20 kilometres of utilities tunnels excavated to house chilled water, potable water, irrigation and sewage pipes, as well as electrical and telecom conduits. The concrete structure of the Exhibition Halls has progressed in readiness for the installation of 50-ton steel trusses, which are being fabricated locally in Sohar. Energy Centre foundation works are progressing, as are the car-park support columns and walls.


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The concrete structure of the Exhibition Halls has progressed in readiness for the installation of 50-ton steel trusses, which are being fabricated locally in Sohar.

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Operating Review 2013 | Developments

...channelling more than RO 5 million to local contractors and suppliers instead of common practice of importing precast concrete from abroad.

Sustainability Throughout the year construction of the OCEC project was monitored to ensure compliance to sustainability guidelines in order to qualify for LEED certification. Omran also made the decision to use cast-in-situ post tension structure on the car park, thus channelling more than RO 5 million to local contractors and suppliers instead of common practice of importing precast concrete from abroad. The added benefit of this decision is to avoid traffic congestion that would have been caused by more than 2,500 articulated low bed trucks transporting the precast concrete and the potential for road accidents. Sales and Marketing AEG Ogden, OCEC’s operator, continued to promote the Oman Convention and Exhibition Centre through participation in specialised international industry exhibitions and trade shows and is inviting bids for hosting events at the Exhibition Halls starting Q4 2015 and the Convention Centre starting Q2 2017. CSR As part of our commitment to national capacity building, Omran established a mentoring programme within the OCEC construction supervision team to allow the largest number of Omani engineers from various disciplines to gain on-the-job exposure to different stages of construction. The Booz & Co. socio-economic impact assessment study on OCEC concluded that far-reaching impact is expected to the Oman economy and in terms of job creation for Omanis within the OCEC and outside the development. Quality, Health, Safety and Environment (QHSE) During 2013 a total of 1.3 million man-hours were completed without Lost Time Injury (LTI).


Oman Tourism Development Company

View for Exhibition Halls Concourse

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Operating Review 2013 | Developments

Al Irfan Urban Development

Transforming the Capital The Government of the Sultanate of Oman is contemplating the development of a master plan to create a new city centre overlooking the site of Muscat International Airport and adjacent to the Oman Convention and Exhibition Centre. The aim is to create a new, vibrant and sustainable downtown district that preserves Muscat’s unique traditional integrity and cultural values in a way that improves the economy, health and well-being of community. The overriding goals of the project are to create an engine for economic and financial growth and prosperity that supports the efficient and sustainable use of rural and natural resources and the on-going development of Oman’s tourism, business and residential infrastructure. The Government has allocated 7.4 million square metres of land for the Al Irfan Urban Development in Airport Heights, with the Muscat Southern Expressway on its southern perimeter and Ministry of Defence Property on its western perimeter. As conceived, construction will cover 3.1 million square meters of 4.2 million square meters of developable land within the allotment. The mixed-use development will include housing, business centres, shopping malls and hotels. An area of 0.6 million square metres will be allocated for recreational and cultural facilities as well as schools and hospitals.

An area of 0.5 million square meters has been allocated for a central public park. Project development is planned in 3 phases beginning with a first phase developing 1.3 million square meters area scheduled for completion by 2021. All three phases will take between 25-30 years to complete. Al Irfan Urban Development will create jobs, incubate business enterprises, alleviate urban sprawl, secure and enhance property values, and increase the variety of goods and services. It is estimated that on completion the project will contribute OMR 450-500 million annually to the Sultanate’s GDP and create 35,000 new jobs. To gauge the feasibility and oversee planning for the execution of the project, the Government has formed a Steering Committee comprised of representatives from various government entities, including Omran. The Steering Committee appointed Omran to manage the initial development of the project and Omran has commissioned Booz & Co. to develop an integrated study to determine project feasibility and create an implementation road map. The strategic study was completed and confirmed that the Al Irfan Urban Development was feasible and fully aligned with the Government’s vision and development aspirations.


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W Hotel

Leading-Edge Luxury in the Heart of Muscat In 2013 the architectural firm COWI& Partners LLC completed the design of the W Hotel, which will be located in Muscat’s Shatti Al Qurum District, adjacent to the Royal Opera House and the site of InterContinental Hotel Muscat. The W Hotel will be operated by Starwood Hotels and Resorts and feature 287 hotel rooms and suites, including 29 suites, 4 special suites and one royal villa.

Design Two leading interior design firms have been commissioned for the project: P49Deesign and Rockwell Group – Europe. Landscape design will be implemented by LMS International.

The property will also include spa facilities, multiple dining venues, swimming pools and water features, a fitness centre, ballroom, meeting rooms, retail space and business centre covering a gross floor area of approximately 46,000 m² on 9 levels. In 2013 the designs were submitted for LEED Standard Gold accreditation.

Construction Construction is scheduled to begin in Q2 2014, with a soft opening anticipated in Q4 2016 and a public opening in Q1 2017. Associated works will include demolition of some existing facilities, site works, including civil, mechanical and electrical work, hard and soft landscaping, construction of a parking structure, road works and associated support structures.

Tendering In December 2013 Omran issued a public tender announcement for prime contractors.

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Operating Review 2013 | Developments

Alila Jabal Akhdar Resort

Completing a Green Milestone Tourism Development

During 2013 construction of the deluxe Alila Jabal Akhdar Resort at the summit plateau of Al Jabal Al Akhdar Mountain in Al-Dakhiliya Governorate progressed on schedule, nearing completion by the end of Q4. The resort complex includes 86 hotel rooms and suites, 2 royal Omani villas, 6 multi-level spa suites, spa facilities, multiple dining venues with outdoor and indoor pools and water features. The project will be handed over for soft-opening in Q1 2014 with a grand opening scheduled for Q2 2014.


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Sustainability In 2013 Alila Jabal Akhdar Resort received the ‘Best Project Design’ award at the Dossier Construction Awards and Summit. The project was commended for maximising open space, protecting the habitat from sedimentation and erosion, and being built in harmony with the natural environment by using locally-sourced materials that ensure compatibility with the surroundings such as the use of more than 12,000 m² of natural stone cladding from the mountain. The resort was also praised for its aspiration to meet the Leadership in Energy and Environmental Design (LEED) certification upon completion that guarantees international green building practices are followed throughout the project. Omran and its main Omani contractor, Dawood Contracting LLC, applied stringent safeguards to protect the natural environment and wildlife of Al Jabal Al Akhdar throughout the development of the site, deploying waste management systems and procedures in line with LEED requirements. In 2013 Alila Jabal Akhdar Resort applied for a LEED Standard Gold certificate. Other eco-friendly building initiatives recognised by the judges were restoring the natural habitat with indigenous plants, minimising site disturbances, investing in renewable energy, and using efficient and energy optimised air conditioning systems. In addition, an on-site Sewage Treatment Plant was created to decrease the Resort’s water demands, thereby reducing impact on the rural community. Omran partnered with the local municipality to manage all waste from construction. Waste management procedures, initially deployed in 2012, included the responsible disposal of timber, plastic, concrete and metal and any other materials that could have a negative impact on the surrounding environment or pose a health hazard. Plastic waste and timber were redistributed for use by local carpenters located in Nizwa’s industrial estate.

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Operating Review 2013 | Developments

Design Designed by W.S. Atkins International with interiors by P49Deesign, the resort combines advanced construction technologies and architectural design elements indigenous to the local area. CSR Even prior to opening, Alila Jabal Akhdar engaged with the local community during 2013, hosting a number of community events, providing opportunities for employment, supporting local improvements and SMEs from the surrounding area. Quality, Health, Safety and Environment (QHSE) During 2013, the Alila Jabal Akhdar Resort project achieved a milestone of 2.5 million man-hours without any lost time injury (LTI).


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Operating Review 2013 | Developments

Atana Musandam

An Escape to TranquiLlity

Construction of the 110 room waterfront Atana Musandam in Khasab was initiated in 2012 and continued throughout 2013, with completion scheduled for Q1 2014. When completed Atana Musandam will provide quality, affordable accommodation for visitors to one of the most beautiful parts of Oman. The resort will feature retail facilities, an all-day restaurant, lounge, fitness centre, kid’s club, two swimming pools and a dive centre.


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Sustainability As of the end of 2013 Omran has channelled over 12 million Omani Riyals to contractors and suppliers for the design and construction of the resort, including 237,049 Omani Riyals for design (Archgroup), 10,466,682 Omani Riyals as part of the joint-venture with the local contractor (Group 5 - Al Ansari) for building the main hotel, 708,870 Omani Riyals for the construction of staff accommodation, 482,000 Omani Riyals for FF&E in the main hotel and staff accommodation, 105,595 Omani Riyals for IT works, and 176,474 Omani Riyals for the desalination plant. In addition, an Environmental Impact Assessment (EIA) was undertaken to ensure that the project is in compliance with the most rigorous environmental standards and the hotel will qualify for LEED Silver Accreditation from the United States Green Building Council. Quality, Health, Safety and Environment (QHSE) During 2013, the hotel construction achieved 2 million man hours without lost time injury (LTI).

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Operating Review 2013 | Developments

Al Baleed Seafood Restaurant

exceptional Cuisine

Set on 13,000 m² of coastline facing a lagoon on the Arabian Sea, Al Baleed Seafood Restaurant has been designed incorporating local aesthetics and will feature a 60 seat indoor restaurant and buffet and 50 seat outdoor patio dining area plus a 30 seat rooftop dining area. Designs were completed by end of 2012. Design During 2013 conceptual designs undertaken by Omran’s in-house design team with engineering and construction supervision contracted to the National Engineering Office, were finalised and construction tenders were issued. Bids were received in November 2013 with four out of six proposals coming from local contractors. Construction Construction is scheduled to begin in Q1 2014 with project completion scheduled for Q1 2015.


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Quriyat-Sur Rest Area

Travellers’ Oasis

Quriyat-Sur Rest Area, located in the proximity of the touristic site of Sinkhole is the pilot project in Omran’s innovative “Rest Areas” concept, to develop a nationwide network of rest areas along Oman’s main roads and highways. Design In 2013 design package one, which consists of a retail building, ROP office, drivers’ tea kiosk, service building and road works, was completed and designs for package two, consisting of staff accommodation and a 2-3 star motel, were initiated and are in progress. Design package 3, consisting of the fuel station, will be delivered by the operator.

Tendering During the year, package 1 was tendered and the contract was awarded. Construction Construction began on September 18th, 2013 with project completion scheduled for Q1 2015. Quality, Health, Safety and Environment (QHSE) The project undergoes a monthly HSE inspection and was QHSE Audited in December. To date there have been zero lost time injuries.

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4 Operating Review 2013 | Investments

Investments


Oman Tourism Development Company

Stimulating tourism development Jebel Sifah

Under development by Muriya Tourism Development Company, a joint-venture between Omran and Orascom Hotels and Development, Jebel Sifah is a 6.2 million square metre integrated tourism complex (ITC) located 45 kilometres from Muscat, which will encompass 2,700 residential units and 590 rooms in four luxury hotels, including the 4-star Sifawy Boutique Hotel (opened in 2012), 5-star Hotel Missoni (to be completed in 2018), 5-star Four Seasons Resort (to be completed in 2018) and 5-star Angsana Hotel (to be completed in 2018). Jebel Sifah will also include freehold residential units, a Par 72 18-hole PGA championship golf course, retail shopping areas and a 200 berth marina which was opened in 2012. Set to become one of the most luxurious and iconic resort destinations in the region, Jebel Sifah is a showcase for Oman’s forward-looking tourism development. During 2013, 11 residential units were sold and 28 apartment units and 1 villa were handed over to investors. A new conference room was opened in the Sifawy Boutique Hotel. Five shops were also opened around the 200-berth Marina. Tendering During the year tenders were awarded to Asha Contracting Co. for construction of five villas and to Oman Oryx Co. for construction of five more villas. Other tenders awarded were to Nawa Co. for UPVC external doors and windows in 10 villas, to Khimji Ramadas Co. for A/C works in both villas and apartments and to Asha Contracting for installation of kitchen cabinets in villas and apartments.

Design During the year design packages were developed for residential developments, town management and commercial spaces. Construction Three more holes of the golf course were rough shaped, bringing the number of holes that have been rough shaped to eight. In terms of infrastructure, 1,760 meters of roads and hardscape were completed, which included subterranean installation of water and fire pipes and medium and low voltage electrical cables. Civil and electromechanical work was also completed for 3 electrical substations. Events During 2013 Jebel Sifah played host to a range of events, including Marina Festivals held every weekend, the Jebel Sifah Carnival, the Jebel Sifah Fishing Competition and the Dubai-Muscat Sailing Competition.

Jebel Sifah is a showcase for Oman’s forward-looking tourism development.

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Operating Review 2013 | Investments

Salalah Beach

Salalah Beach is an Integrated Tourism Complex (ITC) under development by Muriya Tourism Development Company, the Orascom-Omran joint venture. The project covers 15.6 million square metres along 8.2 kilometres of coastline and includes 3,000 luxury freehold apartments and villas and four 5-star hotel properties providing 1,260 rooms and 145 residences, including the 5-star MĂśvenpick Hotel (with 398 rooms and 58 residences) to be opened in 2018, the 5-star Rotana Hotel (with 399 rooms and 47 residences), to be opened in 2014 and the 5-star Club Med (with 398 rooms and 32 residences), to be opened in 2018, as well as the 4-star Juweira Boutique Hotel (with 65 rooms and 18 residences), which was opened in 2012. Salalah Beach will feature retail outlets, restaurants and cafes, two 18-hole golf courses, an international school and a 200-berth Marina, which became operational in 2013.

Tendering Tenders were awarded to Panorama Windows Co. for the installation of UPVC external doors and windows for 9 villas, to Bahwan Co. for installation of A/C systems in villas and apartments and to Asha Contracting Co. for installation of kitchen cabinets.

During 2013, 3 villas and 37 apartments within the residential complex were handed over to owners and 8 units were sold. Three shops and Sammak Restaurant were opened within the complex.

Events During 2013 Muriya organised the Salalah Beach Carnival in May receiving over 2,500 visitors and Juweira Hotel hosted a reception event for more than 200 current and prospective clients who were invited for an evening amid the luxurious settings of one of Oman’s premier lifestyle developments.

Design During the year design packages were completed for real estate, town management and commercial spaces. Construction Construction of Rotana Hotel was completed during 2013 with a soft opening scheduled for Q1 2014 and an official opening scheduled for Q2 2014. Construction was also progressing on lake block apartments which will be operated by Juwiera Boutique Hotel when completed.


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Al Baleed Resort

Al Baleed Resort has been designed to provide visitors from around the world easy access and comfortable accommodation adjacent to the ruins of the ancient port city of Al Baleed, an archaeological treasure and cultural and historic destination inscribed as a UNESCO World Heritage site.

Construction Construction of the 5-star resort began on January 5th, 2013 with a completion date scheduled for January 2015. The prime contractor is Carillion Alawi LLC. When completed, Al Baleed Resort will feature a 3-storey 30 room hotel plus 106 luxury villas, including 10 studio chalets, 87 one bedroom chalets, 10 two-bedroom chalets and 1 three bedroom chalet. Most chalets feature a private courtyard and swimming pool. The resort will also include a spa, banquet and recreational facilities, a library, restaurant and beach cafĂŠ. The resort will be managed by Anantara Hotels, Resorts and Spas, which operates properties that celebrate and preserve cultural traditions, historical heritage and natural beauty. The overall investment in the project is 35 million Omani Riyals.

As of the end of 2013 there has been 12.5% overall progress on the site with 147,636 mÂł of backfill delivered to site, with 81 chalet structures (raft slab, above-ground structure and roof slab) and 79 pool structures completed. Block and plastering works were initiated and progressing on schedule. Environmental monitoring is on-going, with quarterly reports submitted to the Ministry of Environment and Climate Affairs. An MEP value engineering re-design is being undertaken by ADG to optimise energy consumption. Also in 2013 construction of an additional border wall to separate the site from the Ministry of Defence compound was tendered and awarded to Carillion Alawi LLC.

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Operating Review 2013 | Investments

DUQM FRONTIER TOWN

Duqm Frontier Town (DFT), the first planned community in the Duqm Region, is being built by Duqm Development Company SAOC (DDC), a 50-50 joint venture between Omran and Daewoo Shipbuilding & Marine Engineering Oman LLC ‘DSME Oman’. The project covers a land area of 270 hectares. Construction In May 2013 DFT’s first development phase reached completion. Phase I which was initiated in 2011, is being leased to Oman Drydock Company for senior management and staff housing and comprises 250 furnished apartments, 94 furnished villas and a club house, as well as support infrastructure and amenities. Design Also in 2013 the Mosque Design Package, which is part of Phase II but will be located in Phase I, was tendered and awarded. In addition the design process for the Operations and Maintenance buildings for the entire project reached the final stage of the design process during the year and will be tendered during the first part of 2014.

Planning for Phase II In line with government plans to attract investment in Duqm a market-demand study was implemented during the year to inform planning for Phase II of DFT. In June 2013 a Usufruct Agreement was signed with Special Economic Zone Authority Duqm (SEZAD), allocating 29.2 hectares land adjacent to Phase I. This agreement will be a part of Phase II, which will comprise around 500 residential units, a hospital, school, and shopping mall with a hypermarket and entertainment facilities. Phase II development is expected to commence in 2014 and is scheduled for completion in 2018. DDC is also exploring further business and investment opportunities as part of its diversification strategy. In September of this year Omran participated in a special seminar held in Singapore and sponsored by SEZAD aimed at highlighting trade and investment opportunities and incentives Duqm has to offer for many industrial and commercial sectors. At the seminar Omran showcased its strong portfolio of current, developing and planned tourism assets in Duqm, with a special focus on Duqm Frontier Town.


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Saraya Bandar Jissah

Saraya Bandar Jissah is a joint-venture between Omran and Saraya Developments. Set upon a 2.2 million square meter site about 25 kilometres southeast of Muscat, Saraya Bandar Jissah is planned as a major mixed-use development that will eventually feature two luxury resort hotels, a recreational club, a park, retail outlets and five residential zones, subdivided into 356 individual plots for villas, townhouses and duplexes. The developed area will cover 201,944 square meters, or about 20% of the allocated land, which includes mountains, valleys and a sweeping beachfront and natural bay. The precincts also encompass sensitive archaeological sites and great care has been taken to ensure that these sites remain protected and untrammelled. To this end in 2013 a series of geotechnical, topographical and heritage protection studies were undertaken by third party consultants. Also during 2013, Jumeirah Group, the Dubai-based luxury hotel operator, was appointed to manage both

hotels. Completion of hotels, recreational facilities, staff accommodation, the technical zone and most residential units is scheduled for April 2017. Construction During 2013 earthworks, including excavation and reclamation and a surface water drainage system were reaching completion on the site and construction of an electrical substation to extend electric power to the project’s site was initiated. Most approvals were granted by relevant authorities and designs were completed for all residential zones, a resort hotel and architectural and engineering designs were undertaken by DSA for a boutique hotel. Tenders were issued for construction of a 5-star hotel, the first residential zone package, site-wide infrastructure works and for infrastructure supervisory services. Infrastructure works and construction of the first hotel are scheduled to begin during Q1 2014.

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Operating Review 2013 | Hospitality Assets

Hospitality assets


Oman Tourism Development Company

Atana: A new Omani hotel brand In 2013 Omran created Atana, a proprietary hospitality operating brand for the growing portfolio of assets the organisation manages. Atana is a first of its kind Omani hotel brand that presents Oman’s rich traditions within contemporary hospitality contexts. Atana properties will be four-star destination hotels and resorts, which will provide guests with an authentic experience of Omani’s style, spirit and character through a world class hospitality offering. During the year in review Omran created the brand positioning and strategy, assembled a pre-launch team, created high level conversion plan for properties currently under management, established operating standards, policies and protocols and created guidelines for temporary branding, which were updated once permanent branding was created. Also in 2013 Omran developed collaterals, obtained required licenses, reviewed existing contracts and established new contracts.

During the last half of the year a governance structure and authority matrix was established. Corporate level process and procedures were developed and brand standards were translated into property standard operating procedures. Sales and marketing development and recruitment was initiated during Q4. The Atana brand will contribute to domestic and foreign tourism, generate increased revenues for the country, make a significant contribution to Omanisation and, most importantly, will support Small and Medium Size Enterprises (SMEs) and local communities in Oman. On January 1st 2014 the Atana brand came to life when the Golden Tulip Resort Khasab became the first hotel in our portfolio to transition to Atana, becoming ‘Atana Khasab’.

Atana Khasab

Throughout 2013 the 60 room and suite Golden Tulip Khasab Resort, was being prepared for a major brand-transitioning to become Omran’s first Atana branded hotel. During the year the property was refurbished to reflect the new identity with the introduction of a number of distinctive design elements and services. Also during the year, the property launched successful promotions through Cobone and Groupon, as well as a room and F&B bundled promotion. In 2013 the hotel achieved a 75% occupancy rate for the year. On January 1st 2014, the four-star ‘Atana Khasab’ was successfully launched, with strong support from the local community.

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Operating Review 2013 | Hospitality Assets

InterContinental Hotel Muscat

The InterContinental Hotel Muscat is a landmark property that has been an integral part of the capital’s social and cultural life for 35 years. Set upon 35 acres, surrounded by extensive landscaped gardens, the InterContinental remains one of the anchor hospitality properties in Muscat. Omran assumed ownership and management responsibility for the hotel with the long-term aim of redeveloping the aging but still profitable property. During 2013, as part of a group-wide quality audit of all InterContinental Hotel Group (IHG) properties, the InterContinental Muscat received an impressive 92% rating. The Quality Controller audited all public areas, back of house, documentations and certifications as well as five guest rooms. The audit focused on cleanliness, physical condition, and IHG brand and safety standards. Points deducted related to room features, which will be upgraded during the planned renovation process. Over the year, InterContinental Hotel Muscat showed an overall 3.6% increase in revenues and room occupancy over the previous year. Recognition Also during the year InterContinental HotelMuscat won a Trip Advisor Award for its Trader Vic’s Restaurant plus receiving 2 Gold, 2 Silver medals and a Bronze at the Oman Hospitality and Food Expo. Omanisation 56%

By the end of 2013, Omanisation rate at the InterContinental Hotel Muscat reached 55.8%, a total of 216 Omanis on staff.


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Operating Review 2013 | Hospitality Assets

Millennium Resort Mussanah During 2013 the transformation of the Asian Beach Games site was fully realised with the completion of the final stage of construction within the Millennium Resort Mussanah complex. Facilities that were finished included a restaurant with indoor and outdoor seating, a Compass Lounge, swimming pool lockers, a kids club, a fully equipped gym with male and female locker facilities, a women’s-only spa facility, a mixed spa facility, associated wet treatment areas, a relaxation lounge area, and two retail shops. In addition, the beach club and miniature golf course were also opened. Throughout the year Millennium Resort Mussanah hosted many events, including the Mussanah Marina Grand Opening, the 5th GCC Sailing Competition, the 3rd Mussanah Race Week, a religious conference sponsored by the Ministry of Awqaf and Religious Affairs, Laser World Cup Championship by Oman Sail, an Oman bicycle race and many corporate “Away Days”.


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During the year the Resort introduced and offered numerous promotional packages for the two Eid festivals, for meetings, weddings, teachers’ offers, Valentine’s Day, and for the military. Also during 2013 Millennium Resort Mussanah continued to build its business, achieving an overall 33.8% year-on-year growth in occupancy. CSR As part of its sustained community outreach initiatives and activities Millennium Resort Mussanah hosted and signed an MoU signing for the charity initiative ‘Musahamatee’, honouring local writer Maher Al-Zadjali for his book ‘Musna’a: A Journey in Time through the Wilayat’. In addition, the Resort participated in Earth Day, initiated a staff beach cleaning project, hosted the Drwazza Social Development Conference, participated in Teachers’ Day at Um Tauml School, as well as numerous charity and cultural events, including Battle of Britain Ball, Thai Cultural Night and Nigerian National Day. Recognition In 2013 Millennium Resort Mussanah was recognised with a Certificate of Excellence from Trip Advisor.

Omanisation As part of its commitment to Omanisation the Resort continued to recruit, train and employ Omani nationals reaching 40% Omanisation, with a total of 71 citizens on staff.

City Hotel Duqm

The City Hotel Duqm provides business travellers 3-star accommodation in close proximity to Duqm Port, Dry Docks, airport project and industrial zones. The hotel has 120-rooms and 5-suites, and features an in-room entertainment system, multi-cuisine restaurant and juice bar, fitness room, 24 hour business centre, a recreation room and sports lounge, free Wi-Fi internet access and full laundry services. A dedicated website was launched in 2013 to communicate directly with clientele. During its first year of operation in 2013 the hotel maintained a steady occupancy rate and catered to community events, including a gathering for school children and their families, organised by Omran in April. Omanisation With 23 expatriates and 10 Omani nationals of staff, Omanisation stands at 30.3% with the aim of bringing staff Omanisation to 50% by Q1 2014.

Golden Tulip Dibba

Golden Tulip Dibba is a four-star family resort with 54 fully-appointed rooms and suites, each featuring a private terrace or balcony with panoramic views of the Gulf of Oman. In 2013, under Omran’s management, the property achieved its highest revenue and made a profit for the first time ever.

Uwaifiya Rest House

Located in Uwaifiya, 291 kilometres from Muscat, Uwaifiyah Rest House features 10 guest rooms with internet access, a swimming pool, business centre with internet access, restaurant with seating for 60, mosque, laundry service and car parking. In October the Rest House served as venue for an Omantel banquet. Omanisation Omanisation of the workforce stands at 44%.

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Operating Review 2013 | Hospitality Assets

Crowne Plaza Duqm Soft opened on April 22nd, 2013, the 4-star Crowne Plaza Duqm features 218 guest rooms, 11 executive suites, 6 family suites and one royal suite, and offers a range of dining facilities, a fitness centre, swimming pool, business centre, ballroom and meeting and conference facilities. During 2013 Crowne Plaza Duqm successfully launched weekly Seafood Nights which attract an average of 70 guests per week. The Crowne Plaza Duqm Sales Team has achieved a ranking of 34 out of 4,657 IHG properties worldwide (number one in Oman and number five in the Middle East). In addition the hotel’s achievement score for IHG Brilliant Basics was 5 out of 5 and its IHG Marketing Audit score stands at 88% for compliance and brand standards. Since its soft launch, the hotel played host to a series of events held throughout the year, including Special Economic Zone Authority Duqum (SEZAD) Conferences in May and October, International Earth Hour in March, a function for 250 guests sponsored by the Governor of Al Wusta, and a visit by the US Navy for site inspection where 70 rooms were booked and a

meeting took place to ascertain the probability for future potential long staying business for March 2014. To promote the hotel, management participated in the Gulf Incentive, Business Travel and Meetings Exhibition (GIBTM) in Abu Dhabi and the Arabian Travel Market (ATM) 2013 in Dubai and received over 60 companies on stand. In its first year of operation the hotel received a score of 88% in a meeting satisfaction survey conducted IHG systems. CSR During 2013 Crowne Plaza Duqm initiated or participated in a range of community directed and CSR activities. Among these activities was an anti-littering campaign organised by Omran to raise environmental awareness of the Duqm community, and particularly young children on environmental issues and encourage responsible citizenship. In addition, hotel staff participated in two beach clean-up activities. During the holy month of Ramadan, Crowne Plaza Duqm organised the distribution of dates and laban for fast-breaking at bus stops, fuel stations,


Oman Tourism Development Company

hospitals and other public places every Saturday one hour prior to fast-breaking. In October the Crowne Plaza Duqm “Waste Warriors” conducted a city clean-up drive, collecting about 20 bags of plastic bottles, soda cans and other refuse as a way of demonstrating to citizens and residents the importance of using the trash bins allocated by the city. Also in October 2013 Crowne Plaza Duqm organised a campaign to collect unused clothing to support Dar Al Atta’a, a non-profit NGO. Over 10 bags of clothes and shoes were collected. In response to the devastating typhoon in the Philippines during November, Crowne Plaza Duqm launched a joint CSR initiative with other IHG Hotels in Oman to provide aid and support for those afflicted. Recognition In 2013 Omran won two awards for its innovative Crowne Plaza Duqm Sewage Treatment Plant (STP), which decreases onsite water consumption by 35% and produces 300,000 litres of treated water per day that is used for irrigation. The STP also keeps sewage from contaminating

the sea, thus protecting the local fishing economy. In March the project received the “Sustainability Initiative of the Year” Award at the 2nd Oman Construction Week Awards. The jury commended the decision, which “clearly demonstrates Omran’s understanding of the importance of sustainable design”. In May Omran received the national and GCC awards for the “Water and Water Reuse Project of the Year” at the MEED Quality Awards for Projects 2013. The independent jury recognized the project for its simple, yet innovative and effective design. Omanisation To increase Omanisation, Crowne Plaza and other IHG Hotels in Oman signed an agreement on November 6th with the National Hospitality Institute to provide local Omanis with skills transfers and employment opportunities within the IHG organization. As of the end of 2013 Crowne Plaza Duqm had achieved a 20% Omanisation rate.

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Operating Review 2013 | Hospitality Assets

Ras Al Jinz Scientific Centre Omran has managed the Ras Al Jinz Scientific Centre in the Ras Al Hadd Turtle Reserve since 2009 and has overseen the development of the Centre into a major eco-tourism destination. In 2012 Omran officially launched the Ras Al Jinz Visitor’s Centre, which features 17 en-suite guest rooms, 2 bunk-bed rooms, one guide room, 12 luxury eco-tents, a forty-seat restaurant, and a unique museum and a gift shop. During 2013 the Turtle Visitors Centre and Luxury Eco-Tents became fully operational and attracted the highest number of visitors since the Scientific Centre was opened with October registering the highest monthly sale ever. Average occupancy for the year reached a healthy 48%.

handicapped and an on-the-job training programme for Omani nationals. Other on-going community initiatives undertaken during the year were supporting the Omani Women’s Association, promotion of Omani handicrafts, regular beach cleaning and other clean-up campaigns and the implementation of Omran’s signature Musahamatee drive, which allows guests to the Visitor’s Centre to make charitable donations as they pay their food and accommodation charges. The Ras Al Jinz Visitors’ Centre also supports Omani senior citizens and women to help them earn a livelihood by providing free space to sell items in the Centre’s gift shop.

CSR With the launch of new facilities and accommodations, Ras Al Jinz has become a platform for many educational activities during the year, including the “Catch Them Young” schools programme to educate children on how to save turtles. Other educational initiatives carried out at Ras Al Jinz Visitor’s Centre during the year were a programme teaching basic computer skills and spoken English to local village children, a merit reward programme for local school children, regular visits to the local school for the

Recognition Ras Al Jinz Visitors’ Centre has been highly recommended on the influential Trip Advisor website.

Omanisation 83%

Ras Al Jinz Visitors’ Centre has achieved an 83% Omanisation rate.


Oman Tourism Development Company

Masira Island Resort

In 2013 Masira Island Resort achieved an average occupancy of 48% (surpassing the previous year’s record average of 45%). The year 2013 was the most profitable year on record for Masira Island Resort. CSR Throughout the year Masira Island Resort sponsored, supported or participated in many events in support of the community. In September the resort was the venue for the ground-breaking Springboard Programme, the international award-winning development course for women, sponsored by Omran and the Omani Women’s Association, in partnership with the British Council. The internationally acclaimed Springboard Development Programme worked with twenty-four aspiring women from Al-Sharqiyah Governorate to build leadership skills and help them fulfil their potentials in the working world. The Springboard workshops taught participants ways of setting goals, how to be assertive and build a strong image and has been delivered to more than 180,000 women worldwide. Other CSR activities during the year included continued support for the Masira chapter of the Oman Women’s Association, an all day activities for handicapped children from the area, beach cleaning initiatives, a tree planting activity to celebrate World Environment Day, a Marhaba Workshop for Omani women and participation in Omran’s philanthropic Musahamatee programme, which allows guests at the Resort to make donations to charitable organisations as a part of their dining or accommodation payments. Recognition During 2013 Masira Island Resort earned a recommendation on Trip Advisor.

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6 Operating Review 2013 | People

People


Oman Tourism Development Company

Building human capital

In a very real sense, our people form the heart and soul of Omran. They are more than human resources, they are the true capital that keeps our work on course. Without their collective contributions meeting the daily challenges we face in building, investing and managing Oman’s continuously developing tourism sector our operations would come to a standstill. During 2013 our Human Capital Department developed new policies and procedures, conducted a comprehensive Employee Satisfaction Survey with the support of the global consultancy KPMG. In the aftermath of the Survey the Department organised follow-up meetings and workshops with all employees with the aim of developing an on-going Action Plan that outlined fifty-five items focusing on issues and challenges to be acted upon. In the course of the year thirty-nine items were completed and four updates were also issued. Also during the year a tender was awarded to a UK-based company to develop and deploy a Talent Management System, which aims to optimise and streamline our human capital development processes in terms of training, professional development, competency gap management and succession planning. This project will be mobilised during 2014. Human Capital Policies During 2013 the Human Capital Department published new and improved human resource policies and procedures manual, which was developed in collaboration with Omran’s Board of Directors, the Ministry of Finance,

and Ernst & Young as an external consultant. The new manual has elaborated employees’ rights and duties as they relate to Omani Labour Laws, and includes a new salary grade structure. This new structure resulted in the adjustment of salary grades for many employees during the year. Also during the year three new Enterprise Resource Planning (ERP) procedures related to performance and professional development were designed and deployed, as well as three new ERP procedures related to employee relations. Training During 2013 a tender was awarded for three large-scale group training sessions covering all staff levels, which were conducted in Q4 2013 and will continue during Q1 2014. Throughout the year Omran organised 70 training courses for its workforce and 15 conferences for employees. Over the year 92% of Omran employees received training. Recruitment During 2013, 20 new employees were recruited for different divisions within Omran. Openings for 7 more positions were advertised during the year with recruitment scheduled for 2014. Omanisation In a sustained commitment to build our national work 72% force, Omran achieved a 72% Omanistion rate in 2013.

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Operating Review 2013 | Community

7

Community


Oman Tourism Development Company

Enhancing lives

Commitment to Oman’s greater community is integral to our culture and operating policy, and is actively reflected in all our projects, programmes and initiatives. Our community activism and outreach is embedded in our developments, investments and the assets we manage. Apart from individual initiatives taken by the properties we develop, invest in and manage, Omran has set up a number of signature initiatives.

Zaree

Zaree is Omran’s most internationally recognised initiative that encourages micro-enterprise for women living in Oman’s communities. Launched as a pilot programme for 6 women in the Wilayat of Khasab, the programme aimed to provide local women with tourism-related micro-business opportunities by offering tourists an experience of Omani culture from a women’s perspective. To ensure the sustainability of the programme in 2013 Omran partnered with Sharakah, to support the development of Small and Medium Enterprises in the Sultanate to conduct a workshop for the Zaree team on ‘Dynamic Entrepreneurship’. The workshop included outlining a five year business continuity strategy and plan for the programme. The Zaree team also showcased the programme and services offered at the Arabian Travel Market 2013 in Dubai, serving as tourism ambassadors for the Sultanate and introducing visitors to the Governorate of Musandam’s tourist attractions and destinations. Also during the year, the Zaree programme successfully participated in the SME Exhibition organised in Musandam.

By working closely with local tour operators, Zaree has become an established activity on female cruise passengers’ tourism agendas while in Khasab. Zaree has served over 24 Cruises and 8,400 visitors from around the world with rare insights into the lives and culture of Omani women. Zaree was also recognised with a number of awards during the year including ‘Best Tourism Ambassador for Al Batinah and Musandam’ by the Travelex Oman Tourism Ambassador Awards 2013 which went to Zaree Team Leader, Iman Al Salti, as well as First Place in the Entrepreneurship Award category at Al Roya Youth Awards. Omran was also recognised for its efforts in establishing Zaree, receiving the Women’s Empowerment Award at the 3rd Asia’s CSR Best Practices Awards, held in Singapore.

Zaree has served over 24 Cruises and 8,400 visitors from around the world

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Operating Review 2013 | Community

Musahamatee

In 2013 Omran launched a new CSR initiative called ‘Musahamatee’, a philanthropic programme that allows hotel patrons to make a donation directly from their dining and accommodation bills, with funds collected channelled to beneficiaries through Dar Al Atta’a, a non-profit, volunteer-based charity. Eight hotels across the Sultanate signed Memorandums of Understanding (MoUs) with Omran to begin implementing the Musahamatee programme. Participating hotels include Millennium Resort Mussanah, InterContinental Hotel Muscat, Golden Tulip Khasab, Golden Tulip Dibba, Masira Island Resort, Ras Al-Jinz Scientific Centre, City Hotel Duqm and Crowne Plaza Duqm.


Oman Tourism Development Company

Capturing the Beauty Photography Initiative Capturing the Beauty’ expresses Oman’s rich and colourful heritage, while reflecting the sheer natural beauty of Al Jabal Al Akhdar and Khasab. In collaboration with Photographic Society of Oman, Omran first started supporting the 22 young photographers in 2013 through facilitating specialized digital photography courses in camera handling and photography abilities as well as photo editing methods using computer software. The company also reinforced its commitment to the photographers by promoting their masterpieces through utilizing their art as tokens of appreciation at their various events and activities.

Masarra

The Ministry of Agriculture and Fisheries in partnership with Omran launched the Omani Rural Women Products brand identity ‘Masarra’ in December. Purposely conceptualised and designed by Omran, ‘Masarra’ is an innovative brand identity that promises to take the Omani Rural Women Products to new heights with its appealing, inviting and creative local and international aesthetic appeal.

Omran’s support for this initiatives stemmed from the company’s belief that the Omani Rural Women Products, even though popular among a limited number of locals and residents, has unlimited potential to grow further in Oman and internationally with the proper branding and associated marketing mechanisms put in place.

Intajee

Intajee, which means ‘My Product’, is Omran’s signature programme to nurture sustainable development and growth of micro-business throughout the Sultanate. In 2012 Intajee supported the successful launch of Salma’s Chocolates, a local brand established by Omani entrepreneurs Salma and Aisha Al Hajri. Within one year Salma’s Chocolates had become an established brand and in May Omran received a “Best Marketing Video” award at the prestigious Ragan Employee Communications Awards for its production of a promotional video for the brand.

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8 Operating Review 2013 | Conclusion

Conclusion


Oman Tourism Development Company

Looking forward to our year ahead

The year 2013 was, as the preceding pages show, a year of progress on all fronts for Omran, as the organisation continued to build, invest in and manage sustainable development projects that will have a rich and lasting impact on Oman’s future, the future of our communities and, most importantly, the welfare of our people.

The benefit of our communities and the health and prosperity of our people is our overriding goal.

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‫الشركة العمانية للتنمية السياحية‬

‫‪71‬‬


‫التقرير السنوي ‪ | 2013‬وختاماً…‬

‫نرسم آفاقا ً جديدة‬ ‫لمستقبل واعد‪.‬‬ ‫ٍ‬ ‫‪Developing new horizons‬‬ ‫‪for a promising tomorrow.‬‬


Omran's Operating Review 2013  

Omran’s pivotal role in developing tourism infrastructure, investing in tourism enterprises, and managing hospitality assets within the Sult...

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