April 9, 2004

CONTINUOUS DEVELOPMENT IN THE FIELDS OF TOURISM, AGRICULTURE AND NATURAL RESOURCES IN THE SULTANATE OF OMAN. A NOTICEABLE INCREASE IN THE VALUE OF AGRICULTURAL PRODUCT AND FISHERIES. THE ENDEAVOUR TO DISCOVER MORE UNDERGROUND WATER, DESALINATE WATER AND RATIONALIZE CONSUMPTION. The Sultanate of Oman, situated at the eastern end of the Arabian Peninsula, facing the Arabian Sea and the Gulf of Oman , is the third largest country in the peninsula after Saudi Arabia and Yemen. For centuries, agriculture and fisheries have contributed to the subsistence of life in Oman under climatic conditions of extreme heat and scarce rainfall. Never before has there been a vital need for a continuing growth of agriculture and food production, thanks to the increasing number of population. It was not until the commercial discovery of oil and its production in 1967 that the country was able to embark on its development. Agriculture has been the vein of life in Oman and still represents a significant amount of income for many people who live in these countries. Because of the underestimation and misconceptions associated with it, the reality is that farming practices have never improved and farmers and their family members continue to leave this traditional and important profession. A large percentage of the Omani population lives in rural villages. More than 40 per cent of the Omani population is involved in agriculture. The coastal Batinah plain extending north-westwards from just north of Muscat to the border with the UAE, and to the east of the Hajjar range, is the most densely populated and heavily cultivated region of the country. Agriculture is totally dependent on irrigation from fresh-water wells sunk into the aquifers, which in turn derives from the rains that fall over the adjacent mountains. High quality dates are the major product of the Batinah plain, while lime is also grown in quantity, dried and exported. Mangoes, bananas and other fruits are also grown, as well as tomatoes, onions, aubergines and tobacco, for local consumption. The area under cultivation on the Batinah coast has increased greatly in the last quarter of a century. Introduction of the diesel pump in place of the donkey as a means of raising water from wells has resulted in many more wells being sunk and more water being drawn from the aquifers. Inland on both flanks of the Hajjar mountains there is considerable areas of cultivation in the wadi beds dependent on water supplied by falaj. In the south, on the coastal plain around Salalah, coconut palms are grown in place of date palms, which are not suited to the local climate. Bananas thrive in quantity on the coastal plain, with papaya and other fruits. Cattle fodder is also grown, but there are plans to transfer fodder cultivation to the inland side of the coastal range, in view of increasing pressure on water resources on the coastal plain. The coast-facing mountain slopes behind the coastal plain are traditional cattle-breeding areas of the Jabali tribesmen, the only ones in the Sultanate. Until recently, the Jabali reared cattle only for their milk; now, with good road links to northern Oman, where beef is in increasing demand, the Jabali are being encouraged to export their cattle to the north. This will not only profit the local population, but also relieve the pressure on the grazing lands. The Sultanate is now the leading livestock producer in the Gulf region, with half a million heads of cattle, goats, sheep and camels. The government aims at increasing local goat production and reduce dependence on imports and hence, model sheep production units are being set up, and the latest technology is being applied to improve fertility, lower death-rates and increase growth-rates. The Ministry of Agriculture and Fisheries is supplying breeders with concentrated feed, as well as fertilisers and seed for the production of fodder. A ministry project aims to increase the production of milk and other dairy products, give dairy farmers marketing assistance and equipment, and introduce them to modern herd management techniques. Artificial insemination is to improve local cattle through cross-breeding with selected imported strains, while the beef production project is to produce economically feasible, good quality beef the whole year round. Protection and immunisation are clearly of great importance. The falaj irrigation system is the most complex irrigation system in the traditional agriculture of Oman . It is still the vein of water upon which many villages and farms rely on. Much of the falaj distribution is traditionally managed and maintained. The agriculture sector, which includes fisheries, is a labour intensive sector. A significant number of Omani population is still engaged in the agricultural and fisheries industry. According to rough estimates, about 27 per cent of Oman 's labour force is employed in the agriculture and fishery sector. As of May 2002, some 64,402 people were engaged in agriculture and fisheries sector. At the end of 2001, the sector employed 63,333. In respect of employment, the agriculture and fisheries sector stands at the fifth place. This explains the importance of this sector in the national economy. At the end of 2001, this sector contributed RO153.9 million to the GDP, up 2.7 per cent over the previous year's contribution of RO149.8 million. Fisheries sector's contribution rose by 3.8 per cent from RO48.7 million in 2000 to RO50.5 million in the year 2001. In the case of agriculture, this stood at RO103.4 million, a 2.2 per cent up from the year 2000's contribution of RO101.1 million. Oman's initiatives in the agriculture sector have also been appreciated by international organisations. The UN Food and Agriculture Organisation (FAO) had praised the efforts of the Omani government in agriculture and fisheries sectors. Agriculture and Fisheries: More than 100,000 Omanis are employed in agriculture and fisheries. Omani farming, livestock, agriculture and fisheries have made great strides since 1970, boosted by a succession of five-year plans. Both sectors can be expanded in line with sustainable development and are expected to become mainstays of the country's diversification plans. Investment in these sectors will increase their productivity in line with government plans. Agriculture: The agriculture and fisheries sector is of major economic and social importance owing to the direct impact it has on food security and the large numbers of people (around 170,000) it employs. The country's social and economic progress is reflected in the growing importance of agriculture and fisheries and the efforts that are being made to increase their contribution to the GDP. Agriculture and fisheries production rose from RO 162.8 million in 1991 to RO 205.7 million in 2000 and RO 215.2 million in 2001. This represents a rate of increase that is higher than the Sultanate's population growth and is a positive indicator, particularly in view of the static nature of the available resources. The agricultural sector's importance is also highlighted by the fact that agricultural exports rose by 9.5% per annum between 1991 and 2001. Today agricultural production accounts for 26.5% of the country's total non-oil exports. Agriculture and fisheries production provides around 53.8% of the Sultanate's food requirements. The country is self-sufficient in fish, dates and bananas, as well as in vegetables and fruit when they are in season. Around 141,000 people work in the agricultural sector and the government provides farmers with a range of services. Assistance is given in setting up greenhouses and in the conservation of Omani fruits such as apricots, pomegranates and walnuts, as well as the introduction of new varieties on the plantations of the Jabal al Akhdhar and in the Governate of Dhofar. Other measures include the introduction of nurseries to produce disease-free seedlings. It has also distributed over 11,000 mango trees to replace damaged trees. Modern irrigation systems have also been installed on 3,886 farms. The government runs pest control programmes to eradicate pests such as the red palm weevil and offers soft loans to farmers; up to 2002 it had provided loans totalling RO 37 million. Bee-keeping: In Oman there are 3,565 registered bee-keepers producing high-quality honey with its distinctive flavour. Two types of bee are known in Oman Apis millifera and Apis florae. Date Palms: The Sixth Five-year Plan (2001-2005) aims to channel millions of Rials into date palm cultivation and ensure the most effective economic investment in this sector. Drought-affected date palms will be uprooted and the focus will be on profitable date palms. Oman has around eight million date palms. The cloning laboratory in Bahla has produced impressive results, propagating and distributing high-yield date palm seedlings to farmers. During the year it gave out 30,000 seedlings. Livestock: The Sultanate has an estimated 1.8 million head of livestock (2002 figure). The government is taking steps to improve the local strains of cows, sheep and goats. In addition, it trains stockbreeders, and operates veterinary quarantine offices at the country's land, sea and air entry points as well as centres in various parts of the country. During the year over 1.8 animals have been immunised against disease. Currently the government operates 62 veterinary clinics, but the private sector is now being encouraged to open private practices. In the year under review 1.5 million animals have been treated. Royal Decree No. 8/2003, issued on 21/1/2003, which promulgated the Law on Pastures and Livestock Management, gave a major boost to the national strategy for improving the natural pastures in the Governorate of Dhofar. Some RO 27 million has been allocated for this purpose with the aim of relieving the pressure on the pastures. The camels in the Governorate of Dhofar have been registered and numbered, and steps have been taken to sell around 95% of the Governorate's camels in the local market or export them. This project will have a positive impact on preventing desertification and developing the pastures. Fisheries: Thanks to Oman's long coastline and its abundant and varied fish stocks, there are excellent opportunities for developing the fisheries sector. In 2001 there were some 29,331 fishermen, as well as a large number of people employed in establishment connected to the fishing industry. The Sixth Five-year Plan aims to achieve a 3.9% annual growth rate by Omanising the commercial fishing fleets by the end of 2005, and develop marine bio-resources. A study is being carried out on a project to set up a fish farming centre and two fisheries training institutes are being established- one in Salalah, which is currently under construction, and the other on the Batinah coast. Work is also continuing on the construction of fishing harbours, and the Fisheries Research Fund is conducting studies on fisheries-related topics in conjunction with Sultan Qaboos University, with a view to propagating specific types of fish including prawns and abalone. Abalone and lobsters may only be caught during two months of the year. The government encourages the country's youth to work in the fishing industry and subsidises them with soft loads from the Oman Development Bank. The youth training ships programme plays an important role in this connection. In addition, the Oman Fisheries Company launched two modern well-equipped fishing vessels with refrigeration units Asmak 1 and Asmak 2 in May 2002. Each of these boats has a load limit of around 77 tonnes. The Sultanate has fish stocks totalling over 47 million tonnes. The Fisheries Quality Control Centre has helped to train fishing companies in quality management. The Sultanate is on the list of states permitted to export fish to EU member countries. Tourism: An area of high priority is the comprehensive development of the Tourism sector. Two studies have been carried out on the long-term development of this sector in order to make Oman a competitive tourist destination: A detailed Master Tourism Plan, known as PAP (Priority Action Plan) Tourism Marketing Strategy consequently a marketing programme has been prepared presenting a new, clear and distinct national brand "Oman the Essence of Arabia". International Development Ireland (IDI) has been engaged as a management support team for developing the tourism sector. The core task of the IDI team is to provide support in implementing strategies and action plans in cooperation with the private sector. Based on the above studies, attention is now focused on eco-tourism, adventure tourism, culture and heritage attractions, water sports, coastal and leisure retreat resorts. Four specific projects are: Barr Al Jissa Work has already commenced on a fully integrated resort, spread over an area of 500,000 sq. m, situated in the capital (20 kms from Muscat city centre). This project includes: three deluxe hotels with modern facilities, exclusive villas and serviced apartments; recreation an entertainment facilities, a commercial centre and a small marina. This project will be managed by the Shangri-la group. The entire development involves an estimated investment of approx. US$170 million. The government is participating with 40% of the equity capital while 60% equity capital is provided by a leading private sector business group. Muscat Sea-Front Development (5 kms north of Seeb airport). An entire coastal ribbon of approximately 6.5 kms in length and a total area of 283 hectares, of which 118 hectares will be reclaimed from the sea, will be developed. This project includes: two x 5-star hotels, a convention centre, a gold course, 2000 residential units, a marina (for 250 boats and yachts), a commercial centre an entertainment centre. It is estimated that the development of the infrastructure will involve an investment of US$120 million. Ras al Hadd project (approx. 300 kms east of the capital). The area is famous for its turtle breeding beaches and for eco-tourism. The development of the infrastructure also includes an airport. Mirbat Tourist Village in Salalah, envisaging an investment of nearly US$25 million. It will have all required tourist facilities such as hotels, chalets, villas and restaurants. Apart from the above-mentioned projects, a Feasibility Study to develop Oman's caves for tourism has been completed in collaboration with the capital Museum of National Heritage of Australia. The project includes a visitors' centre, sound and light systems and walking tracks, estimated to cost US$5 million. A project for restoration of 22 forts has begun, with the process including finding an appropriate theme for each site to enhance its cultural and social history. Eco-tourism is also a basis for sustainable tourism. Whales, turtles, dolphins, migratory birds, Oryx, and sand dunes make Oman a natural destination. During the 6th Five-Year Plan the following are scheduled for completion at the end of 2003: Salalah Theatre Project for an 8000-seat theatre, costing US$6 million; 4-star Khasab Hotel with 60 rooms, costing US$1.5 million, to be managed by the Dutch Golden Tulip chain; Youth hostels and small hotels in carious areas of the Sultanate; Oman Tourism and Hospitality Academy: This has been established in collaboration with the Salzburg Tourism School and IMC University of Austria with the aim of providing specific training for the tourist sector. The students study for a higher diploma in tourism and hospitality. Students may continue their studies in order to obtain BA degrees from universities outside the Sultanate with which there are contractual arrangements. The Academy's first student intake was in the 2001/2002 academic year. The total no. of students is now 353. Fuleij Castle Theatre Since its establishment with UNESCO assistance in October 1999, this Theatre in Barka has attracted large audiences to a wide variety of programmes which have included a theatrical presentation of Adonis' poem "New York" in 2002, oriental evenings from the Royal Oman Symphony Orchestra, and a dramatic performance by dancers from an Andalusian group. Concerts included one Spanish guitarist. Tourism Fairs: In 2003 there has been participation in the following Tourism fairs: Australia, England, France, Germany, Japan, Russia, Switzerland and the UAE. During the year leaflets have been produced in English/Arabic on the Sultan Qaboos Grand Mosque and on the forts/castles. Booklets on the Dakhiliyah, Sharqiyah and Musandam regions have also been printed, along with one on birds. Tourism Law: A recent tourism law provides for the formation of a National Tourism Committee and the establishment of a Tourism Development Fund to support tourist activities. Port Development: Oman; modern port development began in 1974 when Port Sultan Qaboos was built in Muscat with the capacity to handle up to two million tonnes of cargo a year. Development has progressed considerably with the establishment of the new industrial port at Sohar, which can handle the largest container vessels in service, and the upgrading of existing ports including Salalah and Khasab. To promote the projected Salalah Free Zone, the government is floating a 100% state-owned company. Following a detailed feasibility study, negotiations are taking place with two multinational companies for a management contract. Minerals: Omanis have mined, traded and crafted gold, silver and copper for nearly five thousand years, and the government attaches great importance to the minerals sector. To ensure optimal exploitation of the country's mineral resources, a team of geologists from the Ministry has carried out a study of various sites containing industrial rocks, metals and minerals including limestone, marble and ornamental rocks in the wilayats of Ibri and Dhank. Initial studies, which are still being completed, have established the feasibility of exploring them commercially. A study of some ornamental rock sites is also under way with a view to development by the private sector. These studies should be complete by the beginning of 2004. The government encourages both the Omani private sector and foreign companies to invest in the minerals sector. The Sultanate of Oman's current mineral reserves include: More than 700 million tonnes of industrial quality gypsum, used to make cement 15 million tonnes of dolomite, used to manufacture glass More than 200 million tonnes of limestone Around 50 million tonnes of marble Fifteen million tonnes of silica sand Over 4 million tonnes of kaolin, used to manufacture ceramics 15 million tonnes of 1.29% grade copper, yielding 68 gm. per tonne Gold is associated with copper, and national gold reserves stand at 400,000 tonnes, yielding 5 gm. per tonne.