VZCZCXYZ0001
RR RUEHWEB

DE RUEHMS #0439/01 1251358
ZNR UUUUU ZZH
R 051358Z MAY 07
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC 8175
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MUSCAT 000439 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/PI, EEB/CBA 
COMMERCE FOR COBERG 
 
E.O. 12958: N/A 
TAGS: ECON EINV MU
SUBJECT: FULL SUPPORT FOR CONVENTION CENTER PROJECT 
 
 
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Summary 
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¶1. (SBU) The Omani government has given its full support to 
constructing a new convention center which, according to the 
Ministers of Commerce & Industry and Tourism, will enhance 
the attractiveness of the Sultanate as a tourism destination. 
 Consultants from Booz Allen Hamilton (BAH), under contract 
to the USG through the Middle East Partnership Initiative 
(MEPI), are conducting a study to assist the government in 
analyzing:  how the center will compete against or complement 
comparable facilities in the region, what type of hotel 
infrastructure would be required to support convention 
traffic, and what mechanisms Oman would need to market its 
facility in an increasingly crowded field.  End Summary. 
 
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Filling the Gap 
--------------- 
 
¶2. (SBU) On April 23, Econoff and Booz Allen Hamilton 
consultants Gary Grimmer and Maury Wray Bridges discussed the 
Omani government's plans to construct a new convention center 
with Rajha bint Abdulameer bin Ali, Minister of Tourism.  The 
Minister stated that the government's decision to move 
forward on constructing a convention center would address a 
gap in its efforts to develop Oman's tourism industry.  It 
would also serve as a "state of the art showpiece" for Oman, 
opined the Minister.  She noted that the government has 
already received a number of inquiries to hold conferences in 
Muscat, but that with inadequate facilities, these requests 
had to be turned down. 
 
¶3. (SBU) Rajha expressed optimism that Muscat could support a 
6,000 seat facility, which would be adequate to hold events 
such as World Bank conferences.  She found that Oman, with 
its ability to offer tourists a number of eco- and 
adventure-related travel opportunities in the interior, would 
be ideal for the European conventioneer.  When Grimmer 
highlighted the fact that 94% of convention groups are 
smaller than 2,000 participants, Rajha replied that the 
instructions from the Ministry of Finance were to construct a 
facility sufficiently large enough to ensure that expansion 
would not be needed in the future.  She noted that the 
government was well-aware that the facility might be used 
only once or twice a year for a large event, but that 
"flexibility was the key." 
 
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"A Good Thing for Oman" 
----------------------- 
 
¶4. (SBU) In a follow-on meeting, Maqbool bin Ali Sultan, 
Minister of Commerce and Industry, echoed the tourism 
minister's comments that the convention center would be a 
"good thing" for Oman's economic development.  He noted that 
his discussions with conference organizers from the WTO, 
UNCTAD and the G-77 revealed that Oman would be a popular 
destination for their events.  In developing plans for the 
center's construction, the Minister remarked that the 
government had weighed several options, including the 
expansion of the existing exhibition center (built in the 
mid-1980s), and the construction of a facility adjacent to a 
large resort.  In the end, the government decided to go with 
a stand-alone facility to anchor a new commercial development 
complex in an area close to the airport, and in close 
proximity to a proposed golf course development project. 
 
¶5. (SBU) When asked about the center's capacity, Maqbool 
affirmed the 6,000 figure provided by the tourism minister, 
adding that the government had settled on this number after 
examining the facilities of potential competitors, including 
Doha, Dubai, and Singapore.  "It's better to have too many 
seats rather than too few," stated the Minister.  Maqbool, 
who conservatively estimated that the center would be used 
once or twice per year over the first seven to ten years, 
commented that flexibility in the design of the venue would 
aid in its success.  "I don't think it would make money over 
the early years," he surmised, "but it will eventually become 
self-sufficient." 
 
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Comment 
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¶6. (SBU) Oman's firm intent to construct a convention center 
is further evidenced by the release of tender documents on 
the facility's architectural design.  However, it appears 
that the government may not yet have conducted a 
comprehensive study to determine the implications of the 
proposed center, and thus is eager to review BAH's findings. 
Furthermore, the BAH study will provide recommendations to 
the government on what type of hotel infrastructure will be 
needed to support the center, as well as suggestions on how 
the government should market the complex to entice convention 
organizers -- who are now determining venues for 2010 (the 
expected year of completion for the facility) -- to hold 
events in Muscat.  End comment. 
GRAPPO