News Round Up. Tour of Oman and Amouage gets us some good PR

A few miscellaneous stories readers.

The Tour of Oman seems to have been a reasonable success. It got us some great tourism friendly advertising in Europe and US with shots of the country looking pretty and safe, and the event itself seemed to go relatively smoothly. OK, there were a few problems with the traffic and access, because of the fundamental geography of Muscat using the picturesque roads for cycling means there are few other roads to either get anywhere or to actually get to the cycling or park once you did. They could have used more motorbikes to protect the riders and announce who the on-coming riders were. But all in all, a good job. I don't know how much it cost us, but at least we got the press and TV. The Wall St Journal even managed a story that worked the pun on bicycle and business cycle, Escaping the Business Cycle, Oman Embraces Cycling, that nicely noted the way Oman escaped the worst of the recent global crash.

Contrast that good news with the free press being generated across the globe by the new Dubai Mall aquarium springing a leak. Nicely summarised in quality Dubai-based blog Life in Dubai, the stories naturally drew a link with the closure of 'the world's highest viewing platform', and noted the instinctive response of those who run the mall to try and stop people taking photos. LOL. When will it sink in with the powers that be in this region that, thanks to the internet and a truly global media industry, the old methods for controlling information just don't work anymore. Thanks to camera phones, 3G networks, twitter and, yes, even blogs, stories need to be managed, and managed fast, not blocked. Sh. Maktoum's infamous "Shut up" comment to analysts, as he was under a bit of pressure to pay his vast debts, was beamed around the world in an instant. Stamping one's feet and behaving like a spoiled brat in the face of a bad news story being reported, or trying to suppress stories that are obviously already in the infosphere, are not how to handle PR problems. Toyota and Tiger Woods are lessons to learn too.

Photo: Twitter had the Dubai Mall Aquarium leak out within minutes. See Twitpic


So I'd just say, Oman, please learn these lessons from others. As our economy becomes more dependent on tourists and foreign trade, our reputation and brand need active professional management. I just hope that's what we are getting. What people want to see when a bad story breaks is not cover-ups and non-answers. Evidence of a problem being confidently and professionally handled is essential. Like any celebrity brand, long won gains aquired over decades can be eroded in an instant. It is essential we learn from the PR disaster that is Dubai. I emphasise that this is not about spin (although that is important), but about the fundamentals. For example, getting stories out about how progressive we are wrt women's rights in the Sultanate are OK, but when one sees stories about the ROP stupidly trying to stop an Omani lady getting a motorbike licence because of prejudice, this inconsistency between reality and PR is a problem.


Moving on. In news just in from Moscow, Omani crude oil may see a slightly lower market price in the future as a new Siberian Oil blend 'ESPO' hits the trading markets in the far east. As its closer to the far east markets (hence cheaper to ship) and is a higher quality oil (lighter, less sulphur) it looks like being a fast winner. This will impact not just Omani crude, but a lot of the Gulf too. OK, as long as global growth resumes, it won't be a huge problem, people will still need our crude, but it does indicate Oman will probably take some sort of trading hit on the price people are willing to pay for Omani Blend. Even if it's as low as $0.50 per barrel, remember that's over $120mln a year. Ouch.

...
"The crude is much better than other Persian Gulf grades, and the voyage is much shorter, so it's attractive for most of us," said a trader with an East Asian refiner that may soon try ESPO.

"ESPO is a very vanilla kind of grade, a good grade, much more pleasant than Oman, so refiners in Northeast Asia should be all over it," a trader said.

The completion of a pipeline to China from the Siberian town of Skovorodino by 2012 will take output to about 600,000 bpd from 250,000 bpd projected in the first quarter, making it easier for Chinese refiners to buy ESPO regularly, possibly via term deals.

"Once you have that kind of volume and consumer acceptance, you are looking at a situation where Middle East grades would be at a disadvantage," said Tchilinguirian from BNP Paribas.

And finally, Amouage does well.
Even perfume can create good press when handled correctly. Kudos to shockingly young Amouage CEO David Crickmore and his team for getting the good press out on their launch in Dubai (urh, wouldn't Abu Dhabi be better?) and London. Read the CNN story at Oman's royal family scents global profit in luxury perfumes. (yes, all headline editors love puns)


Photo: Left to right: David Crickmore, Amouage CEO with Syrian Actress Soulaf Fawakherji and Sayyid Khalid bin Hamad Al Busaidi, Amouage Chairman, during a private tour of the new flagship store in Muscat [AME info].

I didn't realise that Amouage was started at the direction of HM in 1983 by His Highness Sayyid Hamad bin Hamoud Al Busaidi, nor that the 'Amouage Gold' scent was created by a famous Parisian Nose & legendary French parfumier, Guy Robert. Its a pity the CEO, Art Director and Nose are expats, but hey, that's how it goes sometimes when you want the best and the best is what it takes in the International Smellies business. At least most of the employees are, I believe, Omani. You can read more about Amouage in an excellent article here.

I also like the idea of further investment in developing and extending the Amouage brand. It could be a very good way of high-grading and expanding local products, as long as extreme quality and (always an ephemeral thing) 'class' are maintained.

But well done Amouage.

Monetary Union for GCC - except Oman - but agreement on VAT

Nice to see some actual progress at the AGCC conference, because it seems the old story on a GCC wide, including Oman, Value Added Tax [VAT] continues to rumble along, and as the only viable effective income tax the Governments can introduce at this stage in the GCC economic development. This according to HE Mr. Macki quoted in the Gulf News. A VAT will also force the Government to have significantly more information and control over the internal economy especially, with the need to apply VAT credits for VAT paid on a business' purchases, and payment of taxes on ts sales. There is a lot of paper involved in VAT, so more jobs for civil servants too.

In addition, as long as average oil prices stay over $45 this year, the budget will be subsidised by the State reserve fund, and there's a reasonably good chance of that if OPEC implement their cuts. Good to see Oman's production up too.



Photo www.daylife.com2 months ago: Saudi Finance Minister Ibrahim al-Assaf (L) and Minister of National Economy and Deputy Chairman for Financial Affairs of Oman Ahmed bin Abdul Nabi Macki talk upon their arrival for a meeting in Riyadh October 25, 2008



He makes the fair point that the tourism sector is growing at a good clip it would seem, but then again, it's coming from a very low baseline and still only accounts for less than 3% of GDP. Given the huge investments being made, I'm not sure I find 23% growth very good. If any sector, Construction must have boomed in 2008.

Expenditure will grow and salaries are safe, he said. All in all, I agree with Minister Macki that 2009 will be relatively benign for Oman, especially in contrast to many other parts of the world. The rapid reduction in growth will catch a few businesses with inventory problems, and the market price for construction equipment should drop. Together with the soon to feed through drops in global prices for almost everything, especially cement, shipping, steel and food, construction should continue to do well.

The only big exposures for Oman will be the oil price, naturally, and the continued plan to remain fixed to the dollar. The dollar looks like it will face a big correction sometime in 2009, and is already down 10% or so of late, [but after the big recovery of the dollar rate in 2008 that we are all enjoying right now when we repatriate funds!]

The big question for me: I wonder if in his original speech he actually said 'Cyclone Gonu', or did he say 'unusual weather conditions'...?

Omani reserves will cover deficits

By Sunil K.Vaidya, Bureau Chief
Published: January 03, 2009, 23:19

Muscat: Ahmad Bin Abdul Nabi Macki, minister of National Economy and Supervisor of the ministry of Finance, yesterday said that any deficit caused by oil prices dropping below $45 a barrel would be covered by emergency reserve funds as well as restructuring the project plans.

"We will not touch salaries as we look for cuts if the oil price drops below $45," he said during a press conference after announcing the state's general budget for 2009 prepared with the oil price estimated at $45. He said that Oman has in the recent past targeted tourism as one of the main sector in governments bid for economic diversification.

Tourism
"The tourism sector continues to grow and is expected to realise a growth rate of 22.3 per cent by virtue of the increase in lodging capacities in the country and efforts exerted to market Oman as a tourism destination," he said.

...

He also announced that people affected by tropical cyclone Gonu in 2007, especially along the Batinah coast, would get 2,200 housing units as part of the first phase, expected to cost of 339 million Omani riyals (Dh3.39 billion).

The total expenditure for the financial year 2009, he revealed, was estimated at about 6.4 billion Omani riyals against 5.8 billion riyals in 2008.

GCC endorses VAT
Ahmad Bin Abdul Nabi Macki, Oman's minister of National Economy and supervisor of the Finance ministry, deputy chairman in the Financial Affairs and Energy Resources Council, has said that the introduction of Value Added Tax (VAT) was a joint GCC decision.

He also added that the study to introduce VAT in the GCC countries was underway to compensate for the loss of revenue following the Customs Union and Common market introduction.

In reply to a question he said: "There are no plans to introduce any other taxes."

Blue City - Dragon Consulting offers a solution... How about Pink City?

Great Article in this weeks Economist about the way Argentina are grabbing the so-called pink tourist dollar.

I have a business suggestion in these tough times for local real estate developments. Pick one, just one, of the many beach developments going up in Oman right now, and unofficially/officially we make it, shall we say, european-metro-sexual friendly. IE Gay. Put it in Mussandam if you prefer.

Don't talk about it, ever. Heck, we control the media anyway! There'll be no need for anyone who doesn't want to know about it, to know about it, so just do it. Really, take this great opportunity to establish the best 'San Fransisco of the whole Middle East' this side of Cairo.





These guys (and gals) spend like crazy, are very well behaved generally, and usually don't have kids! They work. They're creative. They paaaarty. And, the best bit, is that the whole 'base load' can come from the GCC. Think New Orleans, think Amsterdam, think Sydney. All the great cities of the world have a vibrant gay section. The pink GCC dhiram is a very significant market. Go for it Oman. Its your country. Why the hell not?

Call it, Artistic City, if you must. Get a Cirque du Soleil (sp?) franchise, do art, design, architecture, ... come on, you get the idea!

Attract the brightest, the smartest, the richest, the most fun and dynamic people in the whole region who happen to be gay, and create something awesome. Get work done. Be tolerant. Be open minded. Be smart. Grasp the future before the rest of this region and the wealth and influence you will wield will astonish you.

Perhaps other contributors would be willing to contribute design and advertising ideas.

Argentina
Going pinker on the Plata
A new destination for gay tourists

Dec 4th 2008 | BUENOS AIRES The Economist print edition
AFP

It takes two men to tango
“FIRST you step, then you change direction. Don’t try to do both at the same time!” implores the instructor at La Marshall, a tango school in a sparsely decorated apartment in the centre of Buenos Aires. But one couple is having trouble taking any steps at all. A paunchy, middle-aged man with a shaved head awkwardly holds his partner—a much younger, thin, dark-skinned man from Australia—while attempting to shepherd him across the floor. Finally, after a few missteps, they decide to switch roles, with the slimmer man taking charge and deftly piloting his partner.

La Marshall, a predominantly same-sex venue, is one of many specialised attractions Buenos Aires offers gay tourists, who have flocked there since Argentina’s 2002 currency devaluation made it one of the world’s most affordable destinations. Tourism officials reckon that at least a fifth of foreign visitors to the city are homosexuals.

In recent years, Buenos Aires has hosted a gay tourism symposium, a gay football tournament, a gay film festival and the first gay cruise in South American waters; it is now home to a gay hotel, a gay bookstore, and a network of stores providing discounts to customers wielding a “gay-friendly Buenos Aires” card. The influx of so-called “pink money” has become a pillar of the city’s economy. Gay tourists, most of whom are affluent and childless, spend on average around $250 a day on top of their hotel bill.

The city’s combination of European architectural elegance and Latin American flair at knock-down prices has attracted tourists of all sexual orientations. But unlike many other Latin American cities, Buenos Aires has established a reputation as being open and tolerant in a region where homophobia remains prevalent. It has been a regional leader in expanding gay rights.

The city council has approved a law authorising same-sex civil unions, and taken other measures that provide for benefits to pass to surviving partners in such unions and to require hospitals to refer to transgender patients by their chosen rather than legal names. And its array of gay-themed or gay-friendly venues comfortably eclipses the offerings in other Latin American capitals. “How many gay discos are there in Ecuador?” asks Alfredo Ferreyra of Buegay, a tour company. “Here, we speak the same language as our clients.”

Some complain that the gay scene in Buenos Aires has become too mainstream. They question how deep the tolerance goes. “I don’t know how people would react if you walk too close together with your partner or hold hands on the street,” says Urs Jenni, a Swiss guest at the Axel, a “heterofriendly” gay hotel where rooms cost up to $500 a night. The only notably gay element in its futuristic lobby is the silhouette of a man’s torso imprinted on a glass barrier.

Others worry that homosexual tourists are no better shielded from the world financial crisis than anyone else. “At this time of year, we had 120 to 150 people a night,” says Roxana Gargano, the organiser of La Marshall. “Now we’re down to around 80. It’s hit us pretty hard.”

Tourism Enriches! And Gay Tours of Oman

More fun observations for you, on today's theme, Tourism.

Indeed, Oman is moving up in the world of Tourist destinations, its official! As lauded in the simply brilliant Times Of Oman Oman a fast growing travel and tourism economy.

Tuesday, May 27, 2008 11:31:02 PM Oman Time
MUSCAT — Usama bin Karim Al Haremi, head of corporate communications and media of Oman Air notified that the two important reports have been issued discussing important developments within world tourism, and the status of each country in this regard.

The first report was issued by the World Travel and Tourism Council (WTTC), where the second research was conducted by the World Economic Forum (WEF). According to the latest World Travel and Tourism Council (WTTC) report ‘The 2008 travel and tourism economic research on Oman’, Al Haremi pointed out that Oman being a fast growing travel and tourism economy as per the report.
…
Oman’s travel and tourism should grow from 9.8 per cent (RO1,678.6m) to 11.1 per cent (RO2,265.4m) in this same period.

Yes, the tourism business is great, offering employment and investment opportunities while making the most of the almost endless beaches and vibrant culture of the Sultanate. Tourism also is known globally for mixing quaint and pristine native cultures with the more sophisticated social mores of the international jet set. This is going to present a challenge for Oman in the medium term. Skimpy bikinis and even topless bathing are now a far from unusual sight in the 4 and 5 star resorts in Oman. And who hasn't seen the tourists in their tight mini-shorts and sleeveless tops wandering around the Souk or Sabco Centre.

And so it progresses, with the simply darling company
Man Around Travel now offering organized holidays to Oman especially for Gay Men…


It sounds like a nicely organised tour, including Turtles, Wahiba sands, Wadi Shab, Tiwi, Nizwa, Jebel Akhdar, Al Sawadi Beach, the Souk (pashmina, pashmina… sir?) and crowned with, of course, a visit to the Amouage factory. I wonder who the local tour guide company is?

I presume it’s a question of ‘don’t ask, don’t tell’ at the hotels, because if unmarried men and women can check into The Chedi and Barr Al jissa (as they can), what can possibly be wrong with 2 male ‘friends’ sharing a room. I wonder if the king size bed is offered as an option…

Tourism Enriches indeed.

Note: Comments may be edited from this post in line with the law and at the whim of the dragon …

A snapshot of the itinery

Day 2
arrival Muscat
Arrival at Muscat airport, meet/greet by local guide, transfer to the hotel. Time to rest or to enjoy Qantab Beach (just a few minutes by taxi). Overnight at Ramada Hotel ****, Muscat

Day 3
Muscat (B)
The Omani capital Muscat is tidy, clean and most of it modern, nevertheless it is very oriental! We will start by visiting its most recent landmark, the impressive new Sultan Qaboos Mosque. Then Natural History Museum, Oil Museum. Picknick at Qantab Beach. Afternoon tea at the world famous Bustan palace Hotel. On the way to Matrah, the most traditional quarter of Muscat, we will stop near the Forts of Jilali and Mirani and some ministries (all from outside only). Time to shop at lively souq (bazaar) of Matrah, an excellent place for example to buy a typical Omani dagger. Overnight at Ramada Hotel ****, Muscat