Post-COVID-19 Impact on the Oman Tourism Market: Coping Strategies of the Hospitality Sector in Dhofar Governorate

Abstract

The COVID-19 pandemic spread rapidly worldwide. The tourism industry has suffered deep losses that have profoundly impacted attracting tourists and services offered, where many hotels are temporarily or permanently closed. This exploratory study has been conducted to study the impact of the pandemic on the hospitality sector in Oman. It contributes to the literature by providing new managerial insights and perspectives on the management of hotels during crises. Employing a case study approach supported by qualitative analysis, the study investigated the experiences of hotel managers in coping with challenges presented by the pandemic, the benefits of government support programs, employee retention, and adopting revenues and cost-saving strategies during the crisis. The study collected authentic opinions through semi-structured interviews with hotel managers in the Dhofar region (Oman). The analysis revealed that hotel managers suffered from several issues (challenges): stress, shortage of employees, financial losses (e.g., liquidity problems), closures, reopening, and difficulties adapting to change. This study emphasizes coping strategies to mitigate the onslaught of the COVID-19 crisis, which the tourism industry encountered amid the pandemic and post-pandemic. The study also provides suggestions that hotel managers, in collaboration with government officials, need to set up more support programs that will address the challenges faced by the hospitality sector, which is the crux of this research.

1. Introduction

The COVID-19 pandemic has delivered one of the worst economic shocks in modern history. Since declaring COVID-19 as a pandemic on March 11, 2020, it has affected humans at health, educational, humanitarian, social, and economic levels [1]. Until now, its impact has paralyzed many industries and consequently, the economy, whether within the country or between countries, causing substantial financial damage that has resulted in the economies of the countries being devastated. This led to massive job losses [2] and caused great stress among stakeholders. Economically, the pandemic induced a severe economic recession due to the closure of borders between countries and territories, which disrupted the global economy as well as the performance of businesses [3].

Among the industries most seriously affected by the pandemic is the tourism and hospitality industry. Many countries around the world depend on tourism as a key economic driver or a strategic growth sector. Since the 1950s, after WWII, the industry’s growth continued to increase up until the outbreak of the COVID-19 pandemic restrictions in 2020. The outbreak of COVID-19 has weakened the industry globally, leading to closures in hospitality, lockdowns, accommodation service shortages, and inflated prices. For example, holidays and business travels have been disrupted due to continuous lockdowns and international border closings. The shock to the global tourism sector could affect 45–70% of output, depending on the severity of the pandemic in that particular area. The UN World Tourism Organization (UNWTO) estimated that the world would lose 25 million jobs in economic turmoil, more than what happened during the global financial meltdown in 2008. Due to the COVID-19 crisis, the global tourism industry suffered a revenue loss of $1.3 trillion in 2020. The reason was clearly evident that the traveling plans of tourists had fallen drastically. The revenue loss is considered to be more than 11 times the loss when compared with 2009 global economic crisis [4]. The Organization for Economic Co-operation and Development (OECD) estimated an anticipated 60 to 80% decline in international tourism, while the UNWTO predicted a decline in international tourist arrivals by 58 to 78% in 2020, amounting to a loss of USD 910 to 1170 billion in international tourism receipts [5]. In addition, according to the IMF’s April 2021 World Economic Outlook Report, the global economy contracted by 3.5% in 2020, a 7% drop from the 3.4% growth anticipated in October 2019 [6]. Additionally, there were unprecedented global employment losses of 114 million jobs in 2020 relative to 2019. It is estimated that the resulting reductions in travel in 2020 alone deleted US$ 4.5tr from the global tourism economy and cost millions of jobs.

In Oman, tourism represents a major economic pillar for Oman’s economy and a key component of economic diversification for oil-exporting countries. In 2019, the travel and tourism sector accounted for 2.4% of GDP growth and more than 100,000 tourism-related jobs across the Sultanate, according to the NCSI [7]. However, due to the pandemic, the sector has faced unprecedented challenges. Restrictions on foreign travel have had a tremendous impact on the local economy over the last 18 months (March 2020–October 2021). In the first quarter of 2021, outbound international flights taken by Omani tourists were down 94% compared to the year before. The tourism sector suffered the largest reductions in tourist arrivals in 2020, estimated at between 70% and 80% [8]. Due to the COVID-19 crisis, fewer tourists were visiting Oman; this had directly impacted on tourism sector business. According to the statistics issued by the Ministry of Heritage and Tourism, there was a 75.1% drop in tourists in the year 2020 when compared with the year 2019 [9]. Further, according to the Tourism Under-Secretary at the Ministry of Heritage and Tourism (MOHT), the COVID-19 pandemic in the Sultanate has caused direct losses to the tourism sector that are estimated at half billion Omani Rial as of the end of September 2020 [10]. In the Sultanate of Oman, there was a steep decline in hotel occupancy by guests, both foreign and local tourists. This situation resulted into the decline of total revenues of Omani hotel businesses. According to Oman observer daily (Nov 29, 2020), “The total revenues of Omani hotels in the three-to-five-star category fell by 60.2% to RO 70.70 million until the end of October 2020 compared to RO 177.72 million for the same period in the previous year”. For example, the Omani International Hotel Management Company recorded losses of 66.2 thousand Omani riyals (172.2 thousand dollars) during the first half of this year, compared to profits of OMR 1.2 m ($ 3.1 m) during the first half of 2019, according to a statement issued by the company on July 12th. Its revenues fell by 51.9% during the first half of 2020, compared to the first half of 2019, to reach approximately OMR 2.6 m (US$ 6.8 m), according to the statement [11].

This study is about investigating the COVID-19 pandemic effects and the measures that the government and hotel managers have undertaken: (i) to mitigate the impact of the pandemic on the hotel sector in Dhofar Governorate, Oman; and (ii) to identify the government actions and support requirements that have assisted in mitigating the negative impacts on the hotels. The research has raised many questions: “How did the managers of (3-, 4-, and 5-star) hotels in the Dhofar Governorate manage their hotels during the pandemic?” Sub-questions arose from this: (a) How did hotel managers perceive the impacts of the COVID-19 pandemic on the hospitality sector? (b) What are the best practices followed by the Omani government in dealing with the effects of the emerging COVID-19? (c) To what extent have COVID-19 constraints caused hotel management to adapt to the pandemic?

2. Contribution of the study

The importance of this study is that it contributes to the literature by illustrating governments’ measures and aid strategies in assisting and supporting hotels during the pandemic in the under-researched hospitality sector. Following the global COVID-19 pandemic and its devastating impact on every industry, particularly the hospitality industry, there are calls to conduct theoretically driven and systematic research into the experience of hotel managers and the government’s support strategies.

There are extensive studies that have investigated the impact of a crisis on tourism in different contexts, such as hospitality [12, 13, 14] or with specific reference to travel agents [15]. Other researchers have focused on the economic crisis as a form of crisis in tourism [16, 17, 18, 19]. Although several authors analyzed the economic impacts of the COVID-19 pandemic, none of them have specifically examined the Sultanate of Oman in the context of the Dhofar Governorate and the joint actions taken to overcome the pandemic’s impact.

This study is intended to serve as a reference for hospitality planning and management through extended knowledge about the key concerns and ways of coping with the changes and adjustments undertaken by the Omani government and hotel managers during the COVID-19 outbreak. In addition, it contributes to an increase in scientific knowledge about the effects of the pandemic so that the hotel sector stakeholders, such as government officials and hotel managers, can get hotel operations back to normal. Moreover, this study presents an understanding of the key trends and implications for Omani tourism and hospitality. The study will be shared with the government, concerned parties, and academic institutions to support future research in the hospitality sector and other similar sectors. It also seeks to help decision-makers respond and make evidence-based decisions. Again, this study can effectively assist in adjusting the sector development strategy, mitigating risk to the local tourism market.

According to the authors’ knowledge, this is the first research to examine the influence of the COVID-19 pandemic on the hospitality sector in Oman, especially in the Dhofar Governorate during the pandemic’s peak period. As a result, the authors of the study believe that the findings of this study will benefit a variety of parties, including current and potential investors, government officials, scholars, and researchers, by providing a better understanding of the relationship between the COVID-19 pandemic and hotel business in emerging destinations. The study also assists in identifying long-term trends that will be part of the process to anticipate adaptive measures for the industry moving forward. Furthermore, this study contributes to forecasting the future to set driving measures and policies for the recovery of the sector and the ways the government needs to develop a focus on safety and overcoming the challenges. The results are expected to demonstrate the Omani government’s policies that have been geared toward hotel management practices as they struggle with the COVID-19 crisis. In addition, the measures and policies are expected to provide hospitality professionals with preliminary insights and recommendations to manage the effects of the COVID-19 crisis.

The remainder of the study is organized as follows. In addition to the current introduction, the study summarizes previous empirically related studies. After, the research outlines the methodology and data collection. Next, the analysis of the results and discussions focus on the pandemic’s impact on hotel managers in the Dhofar Governorate. Following this, the study discusses the analysis and results. Finally, the research presents the conclusions, limitations, and future research horizons.

3. Literature review

Among various service sectors of the Omani economy, the spread of COVID-19 caused substantial damage to the Sultanate hospitality sector. According to the official reports (MOHT and NCSI), hotels account for more than 60% of all accommodations in the Sultanate, making them the backbone of Omani hospitality. The hospitality sector is at the forefront of the sectors affected, which has experienced heavy job and revenue losses. Importantly, due to the authorities’ decision to prevent gatherings in public places, including gatherings on beaches and picnic areas, such as valleys, mountains, sands, waterfalls, and water springs. According to a report in the Times of Oman, government institutions, as a response to the spread of the pandemic, namely the Ministry of Tourism, Muscat Municipality, and the Ministry of Health, have released restricted guidelines for hotel staff and guests. These measures to counteract COVID-19 in hotel establishments were linked to decisions made by several organizations, namely the Ministry of Tourism, Muscat Municipality, and the Ministry of Health. The Ministry of Heritage and Tourism (MOHT) issued instructions to the hotels on the steps that need to be undertaken to minimize COVID-19 contagion risks. All hotel establishments need to limit entrances, provide transparent face masks for staff and make hand sanitizers available for the guests and staff. The restrictions also directed the hotels to keep swimming pools and gyms closed until further notice. Furthermore, the instructions also include specific guidelines on elevator use and operations at hotel kitchens. As a result, hotel groups experienced a significant reduction in sales. The already crippled tourism business in the Sultanate of Oman had to face much more severity with the cessation of the cruise ship and airline activities by the concerned authorities in Oman. This attempt with the good intention of the Omani authorities to curb the pandemic from further spreading, had caused numerous issues and dilemmas for hotel reservations and tourist trip that were contacted prior to the pandemic [20].

According to the National Center of Statistics and Information (NCSI) [8] reports, the hotel sector, which comprises the bulk of the tourism sector’s workforce, will not be able to return to its previous level very soon either. Indeed, even if activities have resumed after letting up loosening the restrictions, sanitary rules still limit the occupancy rate of establishments. In March 2020, most hotels were forced to reduce the salaries of their employees and give them leave of up to 90 days in order to reduce the proportion of financial losses incurred by the cancelation of reservations and the cessation of tourism. Moreover, to keep up their status in the market, hotels had to adapt to the ‘new norms’ and present the ways hotels attract the guests. As mandated by the Supreme Committee on COVID-19, all passengers arriving in Oman must undergo institutional quarantine for a minimum of seven nights. The move by the Sultanate of Oman to do the hotel bookings through the official government platform ensures that everyone abides by the quarantine rules, so as to curb the spread of the pandemic [21].

4. Hotel establishments in Oman

According to the NCIS [8], the number of hotel establishments increased in 2020 to 547 hotel establishments compared to (492) establishments in 2019, an increase of (11.2%), saving (26,733) hotel rooms and apartments in 2020 compared to (25,408) an increase of (5.2%) over the year 2019. The Governorate of Muscat had the highest number of hotel establishments, represented by (35.5%). Out of the total hotel establishments, followed by the Governorate of South Al Sharqiya, which represents (14.3%), the Governorate of Al Dakhiliyah (11.7%), then Al Batinah South Governorate (6.6%), while in both Dhofar and Al Batinah governorates, North Al Batinah and North Al Sharqiya Governorate represents 6.4%, followed by Al Buraimi Governorate with a percentage of (5.5%). In both Al-Dhahirah and Al-Wusta governorates, their share of hotel projects reached (2.7%), and the governorate of Musandam ranked last in investment in hotel projects, with a percentage of only (1.8%).

Table 1 illustrates the increase of hotel establishments in Dhofar Governorate in the last 5 years (2017–2021), according to the late statistics from the NCSI. 5-star hotels have increased from four establishments in 2017 to 8 in 2021. On the other hand, 4-star hotels have shown a decrease of 1. Surprisingly, 3-Star hotels showed a big jump of almost fourfold from 2017. Other hotels have shown no changes.

Hotel class	2022	2021	2020	2019	2018	2017
5-Star	8	8	8	7	6	4
4-Star	3	3	3	3	2	4
3-Star	8	5	5	4	2	2
2-Star	6	7	6	6	8	7
Others	16	15	13	13	16	16
Total	41	38	35	33	34	33

Table 1.

Number of hotels and class of hotel—Dhofar Governorate.

Source: NCSI [7], NCSI [8], MOHT [22].

The interesting aspect here is the number of guests at hotels in Oman increased by 22.6% during the last 6 months ending June 2021. The guests in physical number, in the year 2021 has increased to 5,22,329 compared with 425,905 in the same period of the year 2020 [23].

Table 2 illustrates that the number of hotel guests that visited Dhofar from 2017 to 2019 has increased while comparing the figures of 2017 with the figures of 2018. However, when the figures for 2019 are compared with the figures of 2018, there is a decrease in the types of guests such as Omani, GCC, other Arabs, Europeans, and others. However, only the Asian guest number is more in the year 2019 when compared with the figure of 2018. The increase in Asian numbers cannot be ruled out; perhaps, some of the Asians had traveled to Oman for employment opportunities.

Hotels guests	2019	2018	2017
Omani	102	122	115
GCC	32	57	51
Other Arabs	8	19	12
Europeans	80	253	163
Asians	41	24	33
Other	7	15	8
Total (000)	270	490	382

Table 2.

Number of hotels guests—Dhofar Governorate.

Source: NCSI [7], NCSI [8].

However, in the first half of 2021, the figures are promising. According to Muscat Daily [9], “Number of Omani guests rose by 164 percent to 369,666 in the first half of 2021 from 139,798 Omani guests during the same period in 2020. This was followed by 74,127 Asian guests this year compared to 42,722 in the first half of 2020, comprising a rise by 73.5 percent.”

As shown in Table 2 below, tourist arrivals to the Sultanate were no better in 2021. Still, at the end of the year, from October, when the winter season starts, the hospitality sector has shown significantly better occupancy in Muscat and Dhofar hotels.

5. Employment

The tourism industry is an important source of job openings for locals; however, jobs and tourism businesses are at risk. In Oman, half of all the people working in tourism lost their jobs, especially those in the hotel sector. The UN Conference on Trade and Development report estimates a further US$1.7tr to US$2.4tr could be lost from the global tourism sector by the end of 2021. The Tourism Under-Secretary at the Ministry of Heritage and Tourism commended the support of the Omani government to the tourism sector. The Omani government gave consent to reopen the activities and provided incentives to the private sector. This effort from the Omani government during the crisis could secure the stability of jobs of not less than 15,700 people who work in the tourism sector in the Sultanate of Oman [10].

5.1 Hotel revenues

Globally, hotels of all classes (1-to-5-star) are struggling with low occupancy rates amid ongoing travel restrictions for almost 2 years. In Oman, hotels continue to reel from the historic drops in revenues and mounting losses due to the impact of the COVID-19 pandemic. The official reports from NCSI stated that the hospitality sector has faced growing financial stress as hotels face a shortage of guests and tourists amid travel restrictions. According to WAFOMAN [14]: the revenues of the Sultanate’s 3 to 5-star hotels decreased from OMR 24 million in April 2019 to OMR 1 m in April 2020. The month of April is the first whole month for hotels to spend after the Sultanate stopped all domestic and international flights on March 29th. The official data issued by the National Center for Statistics and Information show the size of the actual impact of the closure imposed by the spread of COVID-19 on the hotel sector in the Sultanate. According to data issued by the official center of the Sultanate, the number of guests in this category of hotels reached only 12,000 in April 2020, compared to nearly 200,000 guests in April of last year, and the occupancy rate decreased from 63% to only 16% [14].

Table 3 shows that the sector also requires a direct link with the customers (hotel guests). It has been affected by the decline in the number of visits to the Sultanate and the collapse in demand by tourists and business travelers due to the closure of borders. Total revenues of Omani hotels—within 3- to 5-star categories—further plunged by 35.8% to OMRO 37 m in the first half of 2021 compared to OMR 57.67 m recorded in the same period of 2020 [23].

Governorate	2019	2018	2017
Muscat	53.1	54.8	55.3
Dhofar	41.6	46	49.1
Musandam	22.7	25.7	35.2
Al Buraimi	42.1	41.9	42.6
Ad Dakhiliyah	14	14.1	22
Al Batinah North	44.4	44.3	44.3
Al Batinah South	41.2	41.8	42.5
Ash Sharqiyah South	37.9	37.9	34.3
Ash Sharqiyah North	13.7	13.1	14.4
Adh Dhahirah	13.5	13.3	26.1
Al Wusta	34.4	30.7	40
Occupancy Rates	37.4	38.4	45.2

Table 3.

Occupancy rates by governorate.

Source: NCSI [7], NCSI [8].

The disruption caused by the pandemic and global economic decline, especially in the hospitality sector, require a fast-moving transition and adoption strategy, a recovery strategy for the hospitality sector. The undefined persistence of the pandemic duration raises anxiety about the ability to recover from this situation, since hotel businesses from the hospitality sector are known to be relatively more susceptible to the economic complications arising from a crisis. According to NCSI [8], many hotels decreased their occupancy almost to zero during the first 4 months of this year due to the closure procedures, which exposed them to losing tens of millions of Omani rials despite government support. Moreover, tourists’ perceptions, future expectations, and spending are seriously threatened by a high level of uncertainty. Official data indicate a decrease in the number of visitors to the Sultanate from 289,000 in April 2019 to only 1000 when the Sultanate is preparing for two tourist seasons, the first of which begins in the Dhofar Governorate in the south of the Sultanate, which begins in June and continues until September of each year and attracts mainly visitors from the Gulf Cooperation Council (GCC) countries [14].

As a response to contain COVID-19, the Omani government has implemented preventive, restrictive, consecutive, and prolonged measures to address the pandemic and its fallout. As a result, strict containment measures helped curb the first wave and were gradually lifted from June 2020 onward. Travel slowed again as new COVID-19 case numbers began to climb toward the end of the summer and early fall of 2020, leading to a severe spike in October/November. This led to the introduction of stronger restrictions in November 2020 and a return to the COVID-19 Response Phase in the Sultanate of Oman. However, an expert panel from the United Nations World Tourism Organisation expected travel levels to the Middle East to get back to pre-pandemic levels by 2023 or 2024. Moreover, sales in the hotel services sub-sector declined by 60% (approximately). This was due to business closures across the country caused by the new regulations introduced to limit the spread of COVID-19.

As reported in many reputed newspapers in Oman, the overall occupancy rates in Oman’s 3- to 5-star category hotels still remain very low. For instance, referring to the financial figures of Salalah Beach Resort Company, a luxury 5-star resort that offers a beachfront location in Dhofar, reported a net loss of more than RO475,000 for the first half of 2021 against a net loss of RO303,818 in the same period of 2020 [23].

6. Road to recovery: oman’s government responses to COVID-19

Like many countries around the world, the pandemic has caused massive economic disruptions in the Sultanate through simultaneous shocks, including a drop in domestic and external demand, lower oil prices, disruption of trade and global value chains, lower consumer and investor confidence, and tightening financial conditions. Such challenges have forced governments to make quick decisions, manage crisis coordination, and implement strict measures to protect vulnerable communities.

As a response to contain COVID-19, the Omani government, has developed an ‘Economic Stimulus Plan’ to support the efforts to recover the impacts and repercussions of the COVID-19 on the national economy. To support tourism businesses, the plan includes developing robust policies and corporate plans, including hotels, and providing a set of procedures and initiatives designed for the current situation, enhancing the performance of economic activities, and attracting foreign investment [24]. The government came up with interventions to help tourism businesses such as hotels brace themselves against the prolonged and pronounced impacts of COVID-19. The Omani government has also developed recovery scenarios in collaboration with partners to identify the framework of multiple phases of recovery, which align with the global opening to travel. These scenarios are developed to set a tourism recovery plan to boost Omani’s domestic and inbound international tourism following the pandemic. As well as improving transport links, restructuring the organizations that manage Oman tourism, and investing in infrastructure, it is focusing on domestic marketing to promote the Sultanate as a holiday destination for GCC citizens. After the severe setback due to COVID-19 worldwide, tourists are reluctant to travel overseas. Hence, they are forced to depend on touring around within their own countries. This is basically a conservative and precautionary approach followed by tourists, which may benefit internal tourism [25].

The Omani government has taken initiatives to support the tourism industry. Measures include specific credit lines for tourism enterprises introduced by the Central Bank of Oman, exemptions from tourism levies and other fees, and debt rescheduling. Particular attention has also been given to the tourism sector. The Ministry of Finance decided to postpone the payment of tourism fees imposed on hotels—amounting to 4%—until the first quarter of 2021 to mitigate the economic impact on the sector. In addition, coordination between the Ministry of Tourism and the Royal Oman Police extends the validity of unused tourist visas until March 2021 [14]. In an effort to support financially to the affected sectors due to COVID-19, the Omani government through the Central Bank of Oman has issued a number of directives to all banks and finance leasing companies (FLCs), including the announcement of a stimulus package of procedures and incentives aimed at containing the economic impact of the COVID-19 pandemic on the lives of individuals and institutional borrowers [26]. Additionally, in a bid to help small and medium enterprises, the Omani government has also adopted several measures including manpower support, deferred payments and also interest-free loans from the Development Bank [27]. To curb the menace of COVID-19, the Ministry of Tourism, Oman has taken extensive measures to curb COVID-19. The extensive measures include high-level training for all operational staff in virus protection measures to control the safety of all. Further, all guests will be provided with mask and disinfectant upon their arrival [28, 29, 30].

The government has introduced extensive economic support packages and programs that have helped tourism businesses brace themselves against the prolonged impacts of COVID-19. To assists financially to businesses which are suffering from the economic downturn, the Central Bank of Oman (CBO) has unveiled financial incentives of RO 8 billion in the form of additional liquidity [28, 29, 30]. Nevertheless, these costs and future expenditures cannot be extended indefinitely. According to WAFOMAN [31], the Omani Ministry of Finance has approved a proposal to postpone the payment of tourism fees on hotel establishments—submitted by the Ministry of Tourism—until the first quarter of the year 2021. Former Omani Minister of Tourism stated - during his participation in the weekly conference on the developments of the Coronavirus in the Sultanate—that the Ministry of Finance agreed to postpone these 4% fees payable during the period from December 1, 2019, to the end of August 2020, provided that the payment be made in the first quarter of next year after recovery [31]. The former minister explained that the procedure aims to enable hotel establishments to benefit from the liquidity provided by these fees—which are supplied to the state treasury through the Ministry of Tourism—to run the work of hotel and tourist facilities.

7. Research methodology

This study investigates the COVID-19 impacts on the hospitality section in Oman for the period March 2020–October 2021. It also highlights the devastating effects of the pandemic on the hospitality sector and hotel managers. This research is based on a qualitative approach to achieve an in-depth understanding [32] of hotel management experience during the pandemic. The case study method was employed [33] with the hotel managers as the unit of analysis.

Since the study is studying the cases of hotel managers in Dhofar, it is believed that the findings’ transferability to comparable contexts will be beneficial for both research and practice. The methodology used is of a qualitative nature, based on conducting semi-structured interviews to study the impact of the pandemic on the hospitality industry with a specific emphasis on employment and revenues. Through semi-structured interviews, the study collected authentic opinions on the experiences of (3-4-5 star) hotels (international or local hotel chains) from Dhofar Governorate after the COVID-19 pandemic. Using this approach, the study sought to examine the perceptions, feelings, and emotions of hotel managers in the context of the impacts of a financial crisis.

The targeted population included 3-, 4-, and 5-star hotel managers in Dhofar Governorate (Oman) who operate in the hospitality sector. The sampling approach was as follows. From the official annual reports of the Ministry of Heritage and Tourism (MOHT), published in January 2021, the study was able to obtain a list of hotels in the governorate, numbering 19, see Table 4. Then, for each hotel, the study consulted the database of the MOHT to determine the type of business and identity of its owner. This allowed them to retain only 3 to 5-star hotels, and obtain a list of their managers as well as their addresses. Thereafter, we proceeded with purposeful sampling [32] by selecting managers based on their lived experiences and knowledge during the COVID-19 crisis [34]. The purposeful sampling method is intended to capture the characteristics of both commonalities and differences that are necessary for producing new knowledge [35]. As Bernard [36] and Spradley [37] explain, the validity and reliability of the sample are based on the availability, willingness, and ability to participate, communicate, and share experiences in a reflective manner. Qualitative methods are intended to achieve a deeper understanding [32], while sampling methods are intended to maximize efficiency and validity [38]. Miles and Huberman [39] place primary emphasis on saturation. Therefore, the study limited the interviews to 19 managers in person.

Hotel name	Class	No. of hotels
Crowne Plaza Resort Salalah	5-Star	8
Whynadm Garden Mirbat Resort	5-Star
Salalah Rotana Resort	5-Star
Al Fanar Hotel – Salalah Beach	5-Star
Millelumen Salalah Resort	5-Star
Hilton Salalah Hotel	5-Star
Alila Hinu Bay – Mirbat	5-Star
Al Baleed Resort Salalah by Anantara	5-Star
Juweira Boutique Hotel	4-Star	4
Salalah Gardens Hotel	4-Star
Belad Bont Resort	4-Star
Tulip Inn Majan Hotel	4-Star
Muscat International Hotel Plaza Salalah	3-Star	7
InterCityHotel Salalah	3-Star
Hamadan Plaza Hotel	3-Star
Atana Stay Salalah Hotel	3-Star
Bristol Hotel Salalah	3-Star
The Plaza Hotel & Resort	3-Star
Salalah International Hotel	3-Star
Total	19

Table 4.

Interviewed hotel managers in Dhofar Governorate.

Source: Filed Study.

All the participants have responded to us with their written consent. The interviews were conducted face-to-face which assisted the participants to share their experiences faced by them during the COVID-19 crisis. Using the appropriate software NVivo, the responses were coded. In the process three main themes are developed. The first theme explored the experiences of hotel managers during COVID-19, the second theme highlighted the innovative packages to overcome strategic crisis management and the final theme was the lessons learned in the wake of COVID-19 crisis. Equally important, this study highlights the use of secondary data, where collecting data and information came from official sources such as NCSI and articles (JSTOR and Scopus database) about Oman from March 2020 to December 2021.

8. Results and discussion

This study analyses the results of 19 in-depth interviews with managers representing different hotel classes (3-, 4-, and 5-star) in the Dhofar Governorate, Oman. These hotel managers have experienced the profound impact of the pandemic on their hotels’ business. They expressed their concern regarding how the COVID-19 pandemic has greatly affected hotels and even threatened the prosperity and existence of their businesses. A 5-star hotel manager spoke about the impact of the crisis on tourism, saying: “There is no longer a field for tourism, due to the suspension of air traffic, the closure of airports, and the fear of individuals to move with the spread of the epidemic.”

8.1 Hotels financial losses

The findings have highlighted that the hotel sector has experienced financial losses in the wake of the COVID-19-induced financial crisis. Until now, the sector has suffered from the pandemic’s financial impacts, including financing difficulties, recession, and decreased revenues. Hotels found it challenging to gain income due to the drop in the number of guests. The number of guests reached an extreme low during the pandemic. In addition, many hotel projects collapsed dramatically or were canceled in the wake of COVID-19, resulting in a 70% decrease in total guest volume, according to a 4-star hotel manager. According to some hotel managers, the most significant burden in this sector falls on big hotels (4- and 5-star). He argued that since the onset of the crisis, hotels had experienced a sharp and dramatic decline in overall service levels. The severity of this decline far exceeds the declines seen in more established hotel markets. Thus, the findings confirmed that most hotels have insufficient financial resources and have recently spent almost all their reserves. Without the ability to generate revenue, hotels had to continue to assume the costs of their outstanding expenses. The study revealed that most hotels have insufficient financial resources.

All service sectors are connected, and therefore, the slowdown in hotel services has caused a deviation in incomes to the other business sectors due to decreased sales revenues. Global containment measures and travel restrictions implemented by several countries also disrupted supply, production, traveling, and consumption, resulting in massive revenue losses. According to some managers, the pandemic made strategic impacts on the global supply and demand chain. A 5-star hotel manager shared that hotels faced supply chain issues as workers were confined to their homes, while operations were curtailed in some industries. Partial or total business closures, emphasis on facility hygiene, and protective measures to comply with new measures and restrictions also affected supply chains. A 3-star hotel manager commented, “At the beginning of the pandemic, managers had many difficulties adapting to this new reality. They had to set up different arrangements while complying with the authorities’ guidelines, which changed their lifestyle and managerial culture.”

The interviewees and managers argued about the restructuring of loans to investors in the hotel sector, financing policies, encouraging banks to invest in the tourism sector, and providing a package of exemptions such as exemption from the tourism tax represented by 4% and the municipality tax by 5%, as well as exemption from fees for tourist licenses at these facilities. In addition to this, exemption from tourism and municipal taxes is represented in restaurants, cafes, event halls, gymnasiums and other services in these facilities for a period of 2 years, subject to renewal. Further, granting companies and tourist offices an opportunity to replace tourist visas and review the electricity tariff for these facilities to be 20 baisas for a period of 2 years, subject to extension. Accordingly, the circumstances with some other matters related to the workforce from extending the previously offered incentives and providing another incentive package in support of the tourism sector, represented in suspending the requirement of Omanization rates and exempting workers in the sector from renewal fees during this period so that establishments can adapt to this stage and its repercussions. The interviewees stressed the great importance of paying attention to this sector and supporting it in various ways, as it is one of the most affected sectors at global and local levels, calling for rapid intervention by those concerned to support them to survive this pandemic with minimal losses.

8.2 Hotels health measures

The study confirmed that COVID-19 still has a negative impact on hotel performance, which inversely affects offered services and tourists’ decisions to visit át-risk’ tourist destinations. Most, if not all, hotels at different classes had introduced stringent sanitary protocols within their organizations (deep cleaning, easy access to gel and wipes, temperature screening, social distancing, face masks and gloves, online/touchless registration, and payments, upgraded ventilation systems, and individual single-use meal boxes). In addition, luxury hotels during the pandemic shifted from traditional guest protocols to new ones that suited the current situation:

• Incorporating permanent video conferencing technology in meeting rooms.

• Re-mapping of meeting capacities to respect social distancing.

• Implemented 12- to 24-hour room shutdown between guests.

• Eliminated all buffet service.

• In some cases, hotels have been repurposed into COVID-19 recovery and/or quarantine centers, long-term care facilities.

• Reconsidering contracts for future bookings.

8.3 Government support programs

Regarding the role of the government in boosting the sector, several governments worldwide have provided financial support and grants to tourism businesses to mitigate the negative impacts of the crisis, ensure the survival of their operations, and limit the loss of employment opportunities. The results of the study showed that government support for hotels were and still are the most crucial factors that shaped the immediate adjustments of operational activities in response to COVID-19. These support programs have come in different packages to bring back tourists and sustain the hospitality sector during the COVID-19 pandemic. The government continued feeding the media with information related to strategies implemented toward reviving the tourism and hospitality sector, which will build the confidence of the tourists and businesses during the pandemic period. According to an interviewee with a 4-Star hotel manager, the government set out the different COVID-19-related public rescue strategies for the tourism and hospitality sector at the business level (for tourist companies).

Regarding the benefit of government support programs, some hotel managers assured that the government support packages had helped them better manage the pandemic’s impact. They assured that the government was mainly available to support the companies financially. A hotel manager empathized that government assistance has been essential in successfully managing the crisis. This has allowed local hotel businesses to have cash flow and better manage their recovery. This was reflected in the words of a hotel manager, who emphasized, “the assistance was greatly appreciated and needed; without these grants, I would not have been able to reopen.” However, some hotel managers were not satisfied with the packages offered. They argued that despite the government providing support packages for the tourism sector, these packages stopped at the end of last July 2022, and hotels still suffer from a significant decline in occupancy. Again, they found the government support programs were not at a high level of expectations, especially at the beginning of the pandemic, and even later, when tourism was restored.

8.4 Managing hotels during the pandemic

The COVID-19-induced financial crisis put hotel managers under substantial stress. The interviewees said they had experienced tremendous stress and were still experiencing it. It is certain that at the beginning of the crisis, it was very stressful because nobody knew where they were going with the financial crisis caused by COVID-19. As a response to the severe impact of the pandemic on the hotel sector, hotels had displayed a strong managerial orientation to deal with the challenges as a means of managing the COVID-19 crisis. Some 4- and 5-star hotel managers assured that some hotels, for instance, international chains, had to adopt drastic measures to stall the decision to close hotels. Still, most hotels were not spared from this, as cutting costs was not enough to cope with this terrible crisis. Other hotel managers believed that under the new work environment imposed by the pandemic, they had to develop adaptive strategies by being more aware of other opportunities. One of the interviewees urged that hotels must reorganize their services to meet consumer needs better and focus on adjusting the service prices. Also, hotel managers had to share business conditions to anticipate changes. This allows hotels to adapt quickly to focus on new trends and, thus, better manage the changes induced by the COVID-19 crisis. Thus, in the long run, cooperation between the hotel and its employees is needed by focusing on both prevention and response to significant changes. According to the interviewees, they stated that most hotels took immediate actions that encompass deferring investments, laying off workers, reducing labor costs and operating expenses, negotiating contract terms and conditions, and reducing stocks. Moreover, it is crucial to be responsive and clarify the development of the situation through different means of communication. For example, several governments recommended that employees in all sectors telecommute during the pandemic and provide remote service delivery.

In response to the implications of the pandemic, some managers emphasized the importance of maintaining a contingency financial account. This is particularly to cover certain contingencies until the help from the government in the form of aid and subsidies arrives. However, some managers felt that having a contingency financial account will be an obstacle to obtain financial subsidies from the government. The study identifies that managers with several years of managerial experience are more likely to handle the crisis and its aftermath effectively. Also, the study observed that experienced managers are having the capability to adapt to change rather than resisting the change.

The extent of the readiness of these facilities to receive tourists during the coming period, hotel managers shared that they have applied for a package of tax exemptions to face the repercussions of the COVID-19 crisis. They added that they have addressed many proposals and visions that could have reduced the economic losses incurred by the hotel sector during the current period due to the pandemic, praising the importance of the Ministry of Heritage and Tourism for adopting their proposals and views of the supreme committee for dealing with the pandemic. Other interviewees stated that they had strategically opted to stay in business to avoid losing their skilled workforce. For example, a 3-star hotel manager said that he kept the hotel open just for takeaway orders to ensure he could keep his staff. He mentioned, “One of the choices made was to keep my staff, especially my good employees.” On the positive side, the pandemic-induced crisis allowed hotel managers to leverage the pandemic-induced closure for refurbishments and administrative reorganization. Some hotel managers mentioned that they “decided to renovate the entire hotel such as Hilton Salalah to cope with the guests’ needs.”

9. Back to normal life

Successful cooperation between the government and concerned parties in the tourism sector, including civil society is a key factor in an effective response to crises. The pandemic underlined the need to accelerate public administration reform to create a more professional, efficient, effective, and transparent public sector that focuses on the satisfaction of society. Also, the competition between tourist destinations in the Gulf region improves the quality of tourism services and facilities, diversification of the tourism product, and the achievement of cost-efficiency in prices highly demanded. The finding revealed that the pandemic may impact the international tourism. Further, tourists may prefer internal tourism as a precautionary measure. But it looks increasingly unlikely, once the pandemic is over the Omanis and the foreign tourists will eager to travel as similar to pre-pandemic. According to the interviewees, it is estimated that there was a 60% reduction in domestic holidays during 2020. It also predicts that 2021’s domestic tourism will remain well below that of 2019. Rather than a boom in domestic trips, many are not going on holiday at all. According to NCIS [8], the revenues of the hotel sector were slashed by more than half in 2020. Interviewed hotel managers estimated that the demand for hotels is not expected to return to pre-COVID levels until 2023.

Regarding the contribution of tourism to the economic development of the governorate, one of the interviewees commented, “What we saw in the Dhofar festival of this year’s activities, the increase in the number of visitors and the complete readiness to receive tourists from all countries in the fall, was indicative of a strong and effective role of tourism in supporting economic development, and the Ministry of Tourism’s interest in supporting small Omani institutions and youth during this period contributed to the success of this wonderful activity.” The findings revealed that the challenges that hinder the development of the tourism sector in Dhofar the most, is the need to complete the infrastructure in some tourist sites, which the government is making efforts to strengthen, as well as the need to achieve a balance between the development of the tourism sector to reach the desired goals and at the same time, preserve the natural environment and various resources in addition to preserving the cultural and social environment of the Omani society, its customs, and traditions.

10. Coping strategies of Oman tourism: a response to the lessons learned during the pandemic

All over the world tourist choose for tourism for entertainment and exploration. It involves traveling and visiting different sites outside of their usual place of abode. The socioeconomic and political changes in the world affect the tourism industry and the growth of the travel and tourism industry has been marked by its growth after globalization and related changes around the globe. The tourism industry is promoted internationally by all the countries. It brings growth and wealth to both developing and developed countries. The tourism-oriented growth history of nations is an example of its importance as a growth agent. Conversely, tourism creates pollution and threatens indigenous culture, however, due to its heavy contribution to economic growth, nations, especially developing nations, promote tourism. Recently, the tourism phase has changed as the policymakers gave prominence to environmental protection and committed more to sustainability. Conventional mass tourism drifted to ecotourism after the world acknowledge the threat of climate change.

11. Post-COVID-19 strategies required in the tourism sector

1. Harmless tourism environment strategy

   After the COVID-19 pandemic, the awareness of medical issues has changed the mind of the tourists who elect to travel. As a result of this awareness, there is an urge to develop a harmless tourism environment. This should be created to entice tourists and includes the facets of harmless tourism including hygiene accommodation, and ensuring disease prevention. Tourism businesses need to design strategies to create awareness and educate the tourists about illness preclusion. This strategy would help organizations to avoid tourists continuing with the phobia of illnesses or infections.

2. Digitalization Strategy in tourism

   It is necessary to advance digitization in the tourism sector. The database has to be developed and then the strategy to go digital should be implemented. Tourism businesses need to store the travelers data in a safe and secure manner. This may lead to advanced database systems which are developed in all countries that wish to take advantage of coordinated benefits among international players in the tourism sector. This will help the tourism businesses around the world in bringing innovative terminus management.

3. Strategy for conservation and development of human resources in tourism

   The tourism industry is at present facing the absence of a smart workforce as many people have shifted to other jobs during the last few years because of the pandemic and unstable situation. Now businesses need to focus on a human resource retention strategy by providing practical skill exercises conducted by experienced professionals as this will conserve and develop the human resources in the tourism sector.

4. Green tourism strategy

   There is a need after the pandemic to develop green tourism. Tourists became more interested in ecotourism. There are people in the world who like to see low-carbon places and eco-friendly destinations.

   Yilmaz et al. [40] created questionnaires that were completed by 395 locals in order to obtain data on the impact of regional development theories. They discovered that ecotourism was a driving force in regional development and that it had a vital role in the sociocultural and economic development of Sapanca, a town in Turkey, based on their study of tourism development plans developed in Turkey under the new regionalism theory.

5. Future-ready strategy

   The turmoil caused by COVID-19 has resulted in declining revenue for many tourism businesses. Therefore, tourism management should focus on technology and digitization as a part of a future-ready strategy in response to overcome the obstacles that not only may be caused by new outbreaks and virus variants but also by competitive businesses; post-COVID-19, tourism businesses turned aggressively competitive.

   The marketing section personnel of the tourism business should focus their attention on relevant and updated technology applications for targeting the specific audience through appropriate digital advertisements, that is, through enhanced pixels on website pages because the correct message properly targeted will prove increased viewer engagement [41].

   In addition to this, appropriate information about hygiene and qualitative services will overcome the apprehensions of tourists and this will enhance the business prospects. Further, organizations are expected to invest in digitalization, that is, a higher use of automation and contactless payments as this is expected to speed up the business [41]. For increased automation artificial intelligence (AI) can be utilized by the tourism businesses assisting tourists in booking flights and hotel services. AI not only saves businesses and tourists time and money it also reduces the errors in the process.

6. Sustainability strategy

   Understanding customers’/tourists sentiments and conditions are essential for them to purchase travel and tourism services; this approach will pave the way to ensure tourism business sustainability post-COVID-19. For sustainability, it is essential to examine the perceptions of customers/tourists on their travel and tourism expenditure. This attempt would serve as a point of reflection for destination marketers and crisis managers attempting to recover from any crisis [42].

12. Conclusion

The outbreak of COVID-19 has severely affected the tourism and travel market in developed and developing countries. The pandemic has had sociological and socioeconomic implications. Despite all the challenges, the outlook for 2021 and 2022 is for considerable recovery across the Arabian Gulf. The study assisted in presenting how the Omani government action in adopting strategies and ways (measures) to mitigate the influence which could affect the sector’s future. Today’s governments must remain alert and adaptive to unforeseen events, such as external crises, which create increased uncertainty among their workforce and pose immediate threats to the tourism businesses performance and viability. The pandemic has imposed a severe challenge on the tourism business, as businesses are forced to navigate the unprecedented situation by finding new solutions to the challenges across many areas of their operations. This study provides valuable intelligence on the impacts of COVID-19 on the hospitality sector and the government bailout strategy to assure hotels’ existence in the Omani tourism market. The study also showed the importance of government support for tourism businesses during pandemics, but specific problems persisted.

Moreover, the study suggests that hotel management should avoid hasty decisions without considering their impact and consequences on hotels. Notably, a reasonable time to adjust to the measures taken must be observed in similar future cases. The study also suggests that hotel managers, in collaboration with government officials, must set up more support programs to address the challenges. Hotel managers are encouraged to build on a culture of financial precaution by maintaining contingency financial accounts. They should also practice maintaining their employees, as human capital is essential to the business’s success. Finally, the study suggests that hotel managers should receive specific training in resilience and change management during crises. The study also suggests strategies that are to be adopted by tourism businesses post-COVID-19 to garner richer benefits for the tourism business.

13. Limitations and future research

This study is subject to some limitations and, therefore, delivers some opportunities for further research. Note that when the interviews were conducted, the crisis was almost over. The interviews were conducted only with those hotels that continued to operate during the crisis. Unfortunately, the study could not interview hotel managers who ceased operations because of the pandemic. Their opinions or contributions could have been very useful in enriching the results. Although the study evidence was gathered from hotel managers in Dhofar, which assisted to define key areas that affect the hospitality sector, still, there is a need to continually gather robust data on a national basis. This evidence is vital to represent the hospitality sector in these quickly changing and uncertain times. Future research should be conducted after the end of the pandemic and include hotels across Oman and those that resumed operations after being closed for an indefinite period.

Conflict of interest

The authors declare no conflict of interest.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this chapter.