OMRAN Signs Term Sheet With TUI To Boost Oman Tourism

Oman Tourism Development Company (OMRAN Group), the executive arm of the Omani government for tourism development, has signed a term sheet with TUI Group, one of the world’s leading tourism and travel companies. The agreement sets out the key terms and conditions for collaboration, aiming to strengthen Oman’s position as a year-round global tourism destination. The term sheet serves as the foundation for a comprehensive partnership agreement, which will follow after further negotiations and regulatory approvals.

Development Of Hotels And Resorts In Dhofar

Under the terms of the agreement, OMRAN and TUI plan to jointly develop an initial package of five hotels and resorts in Dhofar Governorate. These properties are expected to welcome international guests starting in 2028 and will operate under TUI’s renowned brands, including ROBINSON, TUI Blue, RIU, Jaz, and The Mora. The resorts are designed to provide diverse hospitality experiences, enhancing Dhofar’s tourism offerings and reinforcing Oman’s competitiveness as a year-round destination.

Aligning With Oman Vision 2040

The initiative reflects the central role of tourism in Oman Vision 2040, aligning with OMRAN Group’s mission to drive tourism growth, attract foreign investment, and empower local communities. The project is expected to generate long-term socio-economic benefits, including direct and indirect employment opportunities, increased participation of SMEs, and the development of high-quality tourism infrastructure.

Statements From Officials

Salim Mohammad Al Mahrouqi, Minister of Heritage and Tourism, said: “This term sheet represents a milestone in reinforcing Oman’s position on the global tourism map. In strategic collaboration with OMRAN Group and TUI, we are committed to develop world-class tourism destinations and experiences that attract visitors, generate employment, and drive impactful investments. These initiatives support the Ministry’s comprehensive tourism development plan and enhance Oman’s competitiveness in the global tourism sector.”

He added: “By combining international expertise with our local vision, we are taking the first step toward unlocking the country’s full potential as a year-round tourism destination, driving sustainable economic growth in line with Oman Vision 2040.”

For his part, Sebastian Ebel, CEO of TUI Group, highlighted the significance of the agreement:

“The signing of this term sheet represents an important step in portraying Oman as a promising tourism destination. Together with our partners in Oman, we aim to develop destinations that stand out for quality, sustainability, and uniqueness, following our experience in West Africa, Central America, and Asia.”

Meanwhile, Peter Krueger, Chief Strategy Officer and CEO of Holiday Experiences at TUI Group, emphasized the strong demand from international travelers to visit Oman. He said the alliance will open new tourism opportunities in the Sultanate.

Joint Venture And Equity Structure

The term sheet initiates the process for creating a joint venture, under which OMRAN and TUI are expected to each hold 45% equity, with a private investor holding the remaining 10% stake. Additionally, OMRAN has expressed its intention to become a strategic shareholder in TUI Group, with a 1.4% equity stake, subject to final agreements and regulatory approvals.

Commitment To Sustainability

Both parties have reaffirmed their commitment to sustainability, pledging to develop the projects in accordance with international standards. The partnership aligns with OMRAN Group’s strategy to balance economic growth with social, cultural, and environmental sustainability, ensuring that the projects benefit the local community while enhancing Oman’s tourism profile.

Anticipated Impact

The planned developments are expected to generate significant employment opportunities, motivate the participation of small and medium enterprises, and strengthen Oman — particularly Dhofar Governorate — as a competitive, year-long tourism destination. The alliance underscores Oman’s ambition to attract global travelers, expand its hospitality offerings, and position itself as a leading destination in the international tourism market.