Case Number= 450
Case Mnemonic= OmanTour
CaseName= Trade and Tourism in Oman

• IDENTIFICATION
• LEGAL CLUSTERS
• GEOGRAPHIC CLUSTERS
• TRADE CLUSTERS
• ENVIRONMENT CLUSTERS
• OTHER FACTORS

I. Identification

• 1. The Issue

  The Sultanate of Oman is a tiny nation located on the tip of the Arabian peninsula. It is surprising to learn then that this nation boasts a growing tourist industry. Omani civilization dates back to the Stone Age and it is the remnants of this past along with Oman's natural beauty that is drawing tourists from around the globe. Tourism within the Sultanate emphasizes its natural beauty and storied past. Oman boasts one of the most diverse enviorments in the Middle East and has pursued an impressive enviornmental strategy to preserve its ecological balance while fostering its economic development. While Oman's natural wonders are a significant factor in drawing visitors it is Oman's grand array of archeological sites, currently being restored, which is the main attraction.While tourism is an attractive potential for Oman it presents the government with potential problems. Large influxes of tourists could seriously threaten the enviornment by stressing Oman's delicate resources, such as water and land, too severely. There is also a cultural impact to consider as Western tourists interact with a Muslim society that has been isolated from the modern world until just thirty five years ago. How to balance these tough decisions are what confronts Oman as it tries to develop its tourism sector while maintaining its natural surroundings.

  2. Description

  Oman's History

  
  The Sultanate of Oman, located on the Southeastern tip of the Arabian peninsula, was all but isolated from the outside world until the 1970's. However, Oman has a rich and ancient history as a trading empire whose influence spread well beyond its boundaries in the Middle East. The current government's economic plan emphasizes its rich history by expanding the country's small, but vibrant tourism sector. The tourism sector is growing within the Omani economy as visitors come to see Oman's archeological treasures and to enjoy its rich natural beauty and wildlife. To understand why Oman is a growing tourist attraction we must first examine its past and the history of its trading empire to see how Oman's history is influencing the current government's policies toward tourism.
  Oman has a rich trading history to go along with its ancient civilization as recent archeological survey's have dated settlements from as early as 8,000 years ago. This early civilzation was based on fishing and agricultural systems fueled by monsoon rains. Many of the crops grown today such as bananas, dates, and wheat have roots in these early agricultural systems. As early as 5,000 years ago the mineral wealth of Oman became evident as copper mines and smelters have been identified from excavations near the modern city of Sohar. Around 200 B.C. ships from Oman traded with Mesopotamia and India in products such as copper, building materials, and fine marble. From its earliest days then Oman presented a picture of an industrializing and flourishing society.
  Perhaps what Oman is most famous for is its export of frankincense, the aromatic gum which in ancient times was as valuable as gold. Frankincense comes from a desert tree which is native to Southeast Arabia and Somalia. Dhofar, Oman's Southernmost region is one of the few places where the trees grow. Frankincense, used as an aromatic and a medicine was important to the religious rites of every religion in the world. It was a vital ingredient in perfumes, incense, embalming, and aromatherapy . It was widely beleived that Freankincense could be used to cleanse the body and was important in the burial rights of most ancient societies. At the height of the trade up to 3000 tonnes were exported to the temples of Egypt, Jerusalem, and Rome. Pliny, the Greek historian writing in the 1st century AD claimed that control of the frankincese trade had made the South Arabians one of the richest people in the world. The city of Ubar and the port of Khor Dori flourished as main centers for this trade and Oman still exports frankincense today. In addition to frankincense Oman's seafaring trade helped build a prosperous empire which stretched from Zanzibar and Mombasa on the African coast to portions of present day India and Pakistan. The prosperity of Oman would last until the mid-19th century before new trade routes and Eurpoean technology would make Oman's great ports obsolete.
  Religion is an important aspect of Oman's trading history as Islam came to Oman in the 7th and 8th centuries. Unlike most countries in the region who are ruled by Sunni rteligious leaders Oman is governed by the Ibadi sect of Islam. This sect believes in the election of the best qualified person to become Imam, or leader of the religious community. In other countries in the region the leader of the religious community is often picked from a descendent of the prophet or from families with a rich religious history. Maritime trade flourished under the guidance of Islam, as Oman boasted the greatest port in the Islamic world in Sohar. Omani traders carried the message of Islam and spread the faith as far away as China.
  The first Europeans to come to the Gulf were the Portuguese who occupied Oman in 1507. Their intrusion would mark the beginning of a slow decline in Oman's prosperity over the next two centuries. European occupation would last until 1650 when the Portuguese were expelled from Muscat, the capital, making Oman the first nation in the Arab world to achieve the status of an independent state. Oman, however, would reach its zenith in the mid-19th century under Sultan Said bin Sultan. on his death his empire was divided, one on the East coast of Africa, the other the present state of Oman. From 1856 to 1970 Oman slipped into isolation falling behind other Middle Eastern countries in technology, infrastructure, and education, with little intrusion from the outside world. Only in 1970 did Oman again open itself to the world and set about its current modernization strategy.
  

  Oman's Development Strategy

  
  The government of Oman has developed a strategy to create a national economy based on increasing private enterprize. The Sultanate's strategy is based on using its oil revenues(which are small by Middle Eastern standards) to finance its initial modernization of basic infrastructure and education. All of this was overseen by a Development Council which is currently in its Fifth Five Year Development Plan. This plan emphasizes increases in private investment, expansion of employment, GDP growth around 4.6%, and an increase in the non-oil share of GDP by 69% by 2000. Development has focused on three areas. The first is basic industry mainly in the mineral sector in which Oman has rich deposits of gold, copper, chromite, asbestos, manganese, gypsum, limestone, marble, and coal. Manufacturing, which would be export oriented due to Oman's small domestic market, is also being stressed. Growth in this sector would require state-of-the-art technology and a well qualified workforce, and it would reduce Oman's reliance on nonrenewable resources, such as oil and gas, for revenue.
  The second area of development is agriculture. Oman has a diverse landscape which supports a wide array of products. In the Jebel Akhdar mountain range roses and pomegranates grow in abundance. In the monsoon areas of the Dhofar region coconuts, bananas, papayas, and animal fodder are the main products. In the Interior dates, limes, and wheat are produced. In conjunction with agriculture, fishing is also a major area of expansion with Omani boats having easy access to the Indian Ocean, Red Sea, and the Persian Gulf. In addition to these two areas is a third sector: tourism. This is perhaps the most intriguing area because many Muslim countries discourage tourists for fear of Western culture and values overwhelming the more traditional cultures prevalent throughout the region. Oman, however, has chosen to nurture this industry and is beginning to offer European, American, and other Arab tourists an opportunity to share in its natural beauty and rediscovered past.
  Oman's development plan concerning tourism is focused on attracting foreign investment in projects such as hotels, golf courses, and theme parks. This industry offers a variety of employment opportunities for a rapidly expanding Omani workforce, but is dependent on developing education and training institutions to support growth. Visa restrictions on tourists were eased starting in 1987 as the Omani government has sought to slowly expand tourist numbers as infrastructure and facilities are expanded to meet increased demand. At first only business travelers and tourists on expensive package tours were allowed in. The government does not want budget travelers who they feel will alter the culture by not observing the conservative laws and customs of the region. The current limit on tourists is set at 50,000 a year, but the government plans to expand that number to 100.000 in ten years, and 728,000 by 2020. All of this must be accomplished while balancing Oman's delicate enviornment. Only 1% of Oman's land is under cultivation and resources such as water and land must be used wisely.
  Overseeing the restoration of Oman's heritage is the Ministry of National Culture and Heritage established in 1976. Its greatest achievement has been the restoration of over 100 historic forts and castles, many of which are open to the public and among the top tourist attractions. Many archeological sites are still under excavation, mainly by foreign experts. The completion of this restoration is vital to Oman's future. Not only does it restore Omani pride in their heritage, but it is also a major tourist draw with vast potential for earning income. Many of Oman's towns contain these old forts including the major cities of Muscat, Sur, and Sohar which were also vital ports along ancient trade routes. These cities offer a contrast between new modern buildings and old districts where merchant houses, left over from Oman's trading empire, still stand.
  
  The Interior regions also boast many historic structures perhaps the best known is in the city of Bahla whose fort is on the UNESCO World Heritage list. Other cities in the interior such as Nizwa, Salalah, and Barka each are distinct for their traditional industries such as jewelry, weaving, and fishing. Recently, the ancient city of Ubar an important link in the frankincense trade was discovered by NASA using remote sensing technology. The city flourished as a trading center but was destroyed when it apparently collapsed into a limestne cavern on which it was built. Relics from Alexandria, Jerusalem, and Damascus were found signifying the great trading empire Oman had been in the past. Restoring these relics allows Omanis to peer into their past as traditional industries co-exist with modern day businesses. These contrasts make each area of Oman unique to see and is another reason that the country is attracting more and more tourists.
  The influx of tourists into these once isolated regions poses some potential problems for Oman as well. Attracting tourists requires a buildup in infrastructure and modern conveniences such as hotels, swimming pools, and golf courses. This buildup would undoubtedly stress Oman's delicate resources such as water, arable land, and economic resources. Rising soil salinity, beach pollution from oil spills, and limited natural fresh water resources are just some of the problems currently being tackled.. The problems of waste management, along with urban sprawl would change the unspoiled beauty that currently exists in these ancient towns. The government's policy then is to proceed slowly limiting tourist numbers and cautiously adding to existing infrastructure all in an effort to minimize the environmental impact. An Omani official characterized the government's policy as such: "We are looking for quality rather than quantity. We are not out to sell Oman on her fine beaches, but rather to attract visitors intersted in our heritage, history, and archeology." (Oman Infoworld 1-2)
  The Ministry of National Heritage and Culture is also responsible for the preservation of Oman's traditional crafts. Each region of Oman contains its own unique traditional craft whether it be silver jewlry, pottery, shipbuilding or weaving. These traditional crafts are often showcased in the souqs, or markets, which are present in every village and town. In many ways it is a haven for traditional culture and many of these souqs are situated within the old fortress walls present in many towns across Oman. In these markets one can see the traditional dress on the Omani people and purchase seafood, frankincense, or the khanjar(curved omani tribal dagger made from silver, gold, or in ancient times ivory). While twenty five years ago these souqs were the center of traditional life they now often serve only as a reminder of Oman's history.
  
  

  Oman's Enviornment

  
  • 
    Oman also serves as a diverse enviornment for many varieties of wildlife which the Sultanate has taken great care in protecting and promoting as part of its tourist strategy. The United Nations Enviornmental Program(UNEP) has cited Oman as a country with one of the best records in enviornmental conservation. Laws concerning the enviornment were first passed in 1974 and culminated in 1984 with the establishment of the Ministry of Enviornment which oversees the Sultanate's national plan on the enviornment. The Ministry has overseen various projects including a coastal zone management project whose detailed ecological survey has given Oman one of the most intensely studied enviornments in the world for management purposes. Other projects have focused more on preserving Oman's diverse natural beauty.
    Oman boasts a variety of wildlife, some of which are very rare. Strict laws are in place that prohibit hunting or shooting of wildlife. Natural reserves have been established to protect the natural habitat of species such as leopards, hyenas, oryx, gazelle, taher, ibex, desert fox, antelope, and wild cats. Thirteen different kinds of whales and dolphins have been recorded and over 400 species of birds are to be found in Oman during different seasons of the year. The nature reserves at Ras al-Had beach are a protected site for turtle breeding. The Daymaniyat islands, near Muscat, are designated a bird sanctuary. The Wadi al-Sarin is home to the taher, a mountain goat unique to Oman. All of these sites are restricted to visitors in an effort to protect these species for future generations.
    One of Oman's greatest successes has been the protection of endangered species such as the Arabian oryx (a type of antelope) and the houbara. The houbara is a desert bird that has nearly been hunted to extinction. Efforts began in 1996 to save this species in much the same way as Oman has successfully protected the oryx. The wild oryx was exterminated in 1972, but the government has successfully bred the species in captivity and has reintroduced it into the wild in 1982. The oryx enjoys its own natural reserve in Jiddat al-Harasis a site that has been recognized on UNESCO'S World Natural and Cultural Heritage Register. While the oryx remains on the CITES endangered list its numbers are growing steadily. In addition to wildlife Oman also boasts rare plants and trees including the cordia perrottetii, a rare tree that has survived from an age when monsoon rains regularly covered Oman, approxiamtely 1,500 years ago.. This diversity in natural wildlife, flora, and a wealth of beautiful white sand beaches is a major attraction to tourists coming from the colder climates of Northern Europe and the U.S.
    The Sultanate also enjoys a diverse climate ranging from hot and humid on the coast, mild in the mountains, to a regular monsoon in some Southern areas. The varying climate offers relief from colder Northern climates as well as the searing heat of the Gulf region. While tourism is still in its infant stages the buildup of hotel and resort infrastructure is under way to take advantage of Oman's vast area of unspoiled beaches. While the natural scenery is a major tourist draw Oman also offers many interesting activities such as diving, rock climbing, and shopping. The government expects major growth in this sector from 14,000 tourists who visited in 1995 growth rates are expected to exceed 35% over the next few years. Oman has focused its efforts on attracting tourists from Scandinavia, Western Europe, the United States, and other Gulf countries. These countries offer the high end travel packages and the quality tourists Oman is seeking to attract. Oman has the potential to become the primary tourist destination in the entire Persian Gulf region.
    Oman appears to face a promising future, but still has questions to answer. With its natural beauty and storied past Oman seems destined to become a top tourist destination. Archeology has been the impetus for the tourism indsutry. As the excavations near there completion in the coming years more visitors will seek to find out about Oman's past. This will undoubtedly have a cultural impact on this tiny Muslim nation as well as the ruins themselves. Preservation of its traditional crafts is an important focus. The souqs where many of these goods are produced along with the traditional factories offer a view into Oman's history and a way of life for hundreds of years. Increased numbers of tourists also means great care must be taken to preserve these ruins, and there are strict regulations on visitation now in effect. Increased use means an increased risk of damage and the government is seeking to limit that damage through regulating access and constant restoration efforts. Even as increased numbers of tourists are accomadated it is important to focus on these ancient structures so they are preserved for future generations.
    Oman's diverse wildlife population is another big draw with many tourists. The Sultanate, however, is mostly desert with only 7% of its land in actual use. As visitors are accommodated by building modern hotels, theme parks, and golf courses it is critical to see if the national enviornment plan is upheld or if protected areas are encroached upon. Oman faces a varity of enviornmental problems including soil and water salinity, industrial pollution to ground water, desertification, and scarcity of water due to long periods of drought. By using up land and resources the stress on the enviornment grows and with it the possibility of destroying the very things tourists are drawn to. The impetus to expand the tourism sector must strike a delicate balance with the enviornmant in order to maintain the long term growth of both. Hopefully, under Oman's current strategy these goals will be realized and Oman can prosper into the 21st century.
    

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    4. Draft Author:

    Christopher C. Hoch

    II. LegalClusters

    5. Discourse and Status: Agreement and Inprogress

    6. Forum and Scope: Oman and Unilateral

    7. Decision Breadth: 1

    8. Legal Standing: Law

    
    The national plan for the Conservation of the Enviornment and Prevention of Pollution as well as the "No Enviornmantal Objection" law are the basis for Oman's enviornmental policy. Both of these laws lay out strict guidlines for the use of natural resources within the Sultanate. Both are described in more detail under the Trade Cluster section.

    III. GeographicClusters

    9. Geographic Locations

    a. Geographic Domain: Middle East

    b. Geographic Site: MidEast Asia

    c. Geographic Impact: Oman

    10. Sub-National Factors: No

    11. Type of Habitat: Dry

    IV. TradeClusters

    12. Type of Measure: Regulatory Standard

    
    • The Ministry of Municipalities and the Enviornment is responsible for enforcing Oman's regulatory standards. Laws as early as 1974 were passed to secure the territorial waters of the Sultanate. The Ministry is currently implementing a national plan for the Conservation of the Enviornment and Prevention of Pollution. In October 1990 a seven year coastal zone management project was completed in response to threats posed by rapid urban development. This study made a detailed ecological survey of the entire coast giving Oman one of the most studied coastal enviornments in the world. In addition all construction projects must have a "No Enviornmental Objection" which takes into account possible enviornmental effects of projects. Oman also protects its wildlife by prohibiting all hunting and shooting. Laws have been introduced for the protection of National Parks and Protected Natural Sites including the turtle breeding beaches of Ras al-Had whose visitation is regulated by permit. The Jiddat al-Harasis has been recognized by UNESCO'S World Natural and Cultural Heritage Register for its protection of the Arabian oryx which has been re-introduced into the wild after facing extinction.

      13. Direct v. Indirect Impacts: Indirect

      14. Relation of Trade Measure to Environmental Impact

      a. Directly Related to Product: No

      b. Indirectly Related to Product: Yes. Tourism

      c. Not Related to Product: No

      d. Related to Process: Yes. Culture

      15. Trade Product Identification: Tourism

      16. Economic Data

      
      Population: 2,186,548(July 1996 est.)
      Population Growth Rate: 3.53%(1996 est.)
      GDP Real Growth Rate: 3.5%(1995 est.)
      GDP per Capita: $10,800(1995 est.)
      GDP Composition by Sector:
      1. Agriculture: 3%
      2. Industry: 60%
      3. services: 37%
      These statistics suggest Omani's are realtivley well off with the country as a whole showing promising growth. While the popultaion is small it is growing rapidly which is a concern for the government. There is a pressing need to expand the economy to provide jobs for this new generation. It would appear that services and industrial development should be emphasized as these are the two strongest sectors. Once oil revenues are depleted the need to diversify the economy will become a priority.

      17. Impact of Trade Restriction: N/A

      18. Industry Sector: Services

      19. Exporters and Importers: Many and Oman

      V. EnvironmentClusters

      20. Environmental Problem Type: Habitat Loss

      21. Name, Type, and Diversity of Species

      
      • Oman's ecology is very diverse existing in a varied climate ranging from dry desert, hot and humid along the coast, to regular summer monsoons in the far South. Oman's wildlife includes leopards, hyenas, oryx, gazelle, taher, ibex, desert fox, antelope, and wild cats. Thirteen different kinds of whales and dolphins have been recorded and over 400 species of birds can be found in Oman during different seasons. The Sultanate is also home to the endangered oryx(pictured above) and houbara both nearly hunted to extinction. In addition to wildlife Oman's plants and trees are also of interest including the rare Ja'alan beleived to be the last of its kind dating from an age when monsoon rains covered Oman.

        22. Resource Impact and Effect: Low and Scale

        23. Urgency and Lifetime of Problem: Low and 100's of years

        24. Substitutes: Ecotourism

        VI. OtherFactors

        25. Culture: Yes

        
        • Like many Arab countries the Omani government is wary of the introduction of Western culture into the Sultanate. Oman already consists of Indian, Persian, Baluchi, and Arab influences which have been harmonized over hundreds of years. Although Omani's are considered to be among the most open minded people of the Persian Gulf the government is concerned about Western culture and tourists overwhelming Oman and its traditional heritage. To prevent the loss of culture the government is stressing quality rather than quantity in the number of tourists allowed in the country. Omani's also ask that tourists respect the local customs and traditions in an effort to not only highlight Oman's impressive heritage, but also to preserve its culture in the face of Western values and ideas penetrating the country. By pursuing this policy the government is hoping to preserve its own heritage while promoting its natural wonders.

          26. Trans-Boundary Issues: No

          27. Rights: No

          28. Relevant Literature

          1. "Country Profile: Oman" URL: http://www.ifc.org/camena/oman.htm

          2. "Sultanate of Oman: The Switzerland of Arabia" 9-4-97 URL: http:// www.arabi"omkhnj.gif"cnews.com/ansub/daily/day/970904/1997090420.htm

          3. Oman Infoworld: Major cities URL: http://www.msdg.com/oman/ majotr.tm>

          4. Welcome to the Sultanate of Oman URL: http://www.brunet.bn/php/kharti /syaha.htm

          5. History of Oman URL: http://www.omzest.com/omanhis.html

          6. "Oman..." URL: http://www.mid-net.com/travel/treasure.htm

          7. "Atlantis of the Sands" May/June 1997 v50n3 URL: http:// www. archaeology.org /44319705/etc/oman.html

          8."Digging in the Land of Magan" May/June 1997 v50n3 URL: http://www.archeology.org:44319705/etc/oman.html

          9."Ubar: the Lost City" URL:http://observe.ivv.nasa.gov/nasa/education/exhibits/ubar/ubar.html

          10. Investment in Oman URL: http://brunet.bn/php/kharti/invest2.htm#future

          11. Oman URL:http://www.got.com/worldinf/asia/oman.html

          12. "National Heritage and Culture' URL: http://www.omanet.com/moi_heri.htm

          13. "Commerce and Industry" URL: http://www.omanet.com/moi_comm,htm

          14. "National Economy" URL: http://www.omanet.com.moi_eco.htm

          15. Oman: Wadis. Mountains, and Desert URL: http://legend.net/oman/tour.htm

          16. "Economy" URL: http://www.arab.net/oman/business on _economy.html

          17. "Tour Guide" URL: http:// www.arab.net/oman

          18. "Culture" URL: http:www.arab.net/oman

          19. "Geography" URL: http://www.arab.net/oman

          20. "History" URL: http://www.arab.net/oman

          21. "National Data" URL: http://www.arab.net/oman

          22. Window on Oman URL: http://www.cs.fit.edu/~azadjal/oman.html

          23. "The Economy" URl: http:// www.ita.doc.gov/mena/projoman.txt

          24. "Enviornment" URL: http://www.inforamp.net/~emous/oman/enviorn.htm

          25. "Enviornment and Biodiversity Protection In Oman" URL: http:// www.geocities.com/Rainforest/8883/omanenviorn.html

          26. "Arabian Oryx" URL: http:// www.scz.org/asian/aoryxl.html

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