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An incoming tide for Blue City

To bring you up to date with the story of Blue City, there was a flurry of publicity in June, after Cayman Island registered Essdar Investments Ltd announced that it had bought 99% of the Class A Floating Rate Senior Secured Unrestricted Notes ("Notes") issued by BCC1, at a face value of US$655.

Essar Investments Ltd is in turn owned by Essdar Capital in partnership with Essdar Capital Managers Ltd. The group is based in Dubai where it is regulated by the Dubai Financial Services Authority, but ultimate ownership rests in the hands of members of the ruling Abu Dhabi family.

So what will happen to the dream of Al Madina Al Zarqa? Early intimations suggest that revised ownership might focus on developing tourism, since many of the 'planned hotels, commercial and associated facilities' are on track, and 'better fit demand.' Mr Sanghvi, senior managing director of structuring and investment at Essdar at the time of the deal, is reported to have remarked that the occupancy rates of hotels in Muscat were very high and tourism prospects healthy.

However, a major part of the security on the bond lies in the 25 sq kilometres of land that was gifted by royal order to the original Blue City project back in 2005-6.

Thus Essdar has also had to await the judgement of Oman's Supreme Court on the ownership dispute between AAJ Holdings of Bahrain and Cyclone LLC, the Omani partner, 50% owned by Sayyid Haitham bin Tariq al Said, the minister of culture and heritage and a member of Oman's royal family. See the many earlier postings on this blog.

Earlier this month, Bin Muhanna Holding Group of Qatar and AAJ Holdings Co. of Bahrain said that they had lost the ruling over ownership of the Blue City.

How does Bin Muhanna Holding Group come into the picture? The chairman of the company is Dr Najeeb bin Mohammed Al Noaimi, formerly minister of justice in Qatar, and a defence lawyer for Saddam Hussein. His company's partnership with AAJ Holdings, owned by Ahmed Abu Baker Janahi, was announced in April this year. Indeed, it's been suggested that the interest of Qatari investors added incentive to Essdar's completion of the bond purchase.

Mr Al-Noaimi for his part did not rule out "lawsuits at the London Court of International Arbitration and the ICC International Court of Arbitration in New York," to contest the Omani court's decision, echoing some of Mr Janahi's earlier pronouncements.

What will happen to Cyclone's interest?

It's one thing to own the project, quite another to develop it to make it work. Apparently there had been more interest from US and European investors than from other Gulf partners while BCC1 was running the show. Yet 'as of November last year, only $75m worth of sales had been made, compared with a forecast of $860m.' Legal niceties remain to be resolved and new investment partners found. That's not so easy in a depressed market.

Essdar itself has not committed to injecting further cash into the development.

AAJ Holdings brought the Qatari company in because it needed further financing, not only for Blue City but also for its stalled $750 million Marina West development in Bahrain. Work stopped abruptly on Marina West in March, leaving dozens of residents who had bought off-plan, wondering when they might be able to move into their homes.

Mr Janahi used a press release to announce that his company was determined to bring the project to completion, was working with the developers, Bahrain's major construction company Al Hamad, and had introduced new partners (Bin Muhanna) whose input would give fresh impetus.

Everybody seems reluctant to comment.

17:52:06 on 07/26/10 by Sue Hutton - Tourism - 2 comments - Permalink

The bridge to Masirah Island

Hard on the heels of Cyclone Phet came the announcement that HM Sultan Qaboos bin Said al-Said of Oman had approved the building of a 40km bridge between the mainland and the island of Masirah.

My first thought was that the airlift operation to evacuate the island in the path of the cyclone had not worked fast enough. I know from having travelled there by boat, that it's not possible to rely on the ferry services because they need to run at high tide. Treacherous currents operate in the straits, and maybe some inhabitants were trapped on the island during the cyclone. Subsequent reports indicated a general dissatisfaction that the island doesn't get enough tourists, that prices are too high because transport costs are high, ferry services are erratic and that there's no work on the island itself. All of which I have to concede are true.

The cost of the bridge is projected to be US$1.5bn. That's US$125,000 per head of population of 12,000. Has the bridge been in planning for some time, or have the feasibility, engineering and technical studies yet to be done?

Starry-eyed dreams of prosperity need to be counterbalanced by recognition that a bridge alone will not achieve results. More tourists mean that there would need to be more facilities for them. Coaches of tourists still require to be fed and watered in places which have ambience. They are not likely just to be content with visiting beaches and then returning to the mainland.

There will have to be more hotels. What kind of jobs are anticipated to be created? Will the young people of the island be willing to stay there and work in tourist hospitality? But of course, I forget, these will be high net-worth tourists, as per Oman's tourism policy. In coaches?

Beaches on the eastern side of Masirah facing the Indian Ocean are breeding grounds for rare loggerhead and greenback turtles. Any tourism drive to reveal the turtles should at least strive to be eco-friendly. I have seen tourists arrive late in the evening at Ras al Hadd trouping down to the beach to watch the nesting turtles, shining flashlights and using flash photography, before trekking back to wherever they had come from. None of this is conducive to preserving turtle nesting sanctuaries.

Think about it. It takes quite a time for a female turtle to burrow herself into a fairly deep hole in the sand, and then to lay her many eggs and cover them up. By the time she makes it back to the sea, she must be exhausted. If you were a turtle, would you want to be overlooked while laying eggs, and have flashlights shone in your eyes and be banged on the top of your shell, at a time when you are most vulnerable?

How long would the nesting sites last in the face of inconsiderate tourists? And once the nesting places go, what else is there on the island to attract tourists unless you're a bird watcher or geo-tourist? There's always water sports I suppose, providing the seas don't get too rough.

In short, is there a plan for development of Masirah as a whole, other than for building a bridge to the island? No wonder the official from the Ministry of Finance declined to be identified. As one of the longest sea bridges in the world, rivalling the Qatar-Bahrain causeway, it might be a tourist attraction in its own right.

I remember camping on the beach at Masirah with my husband and son just two nights before the millennium. We were quite alone save for a rare vehicle on the coast road. It wasn't the time of year for nesting turtles to visit anyway. I think one of the treasures of my life must be the solitude and space that we experienced there. I wouldn't trade that for the world to share with a busload of tourists.

An afterthought to my previous post. One report stated that houses in the village of Ghaf were flooded when Cyclone Phet passed through, although not as badly as during Cyclone Gonu. Ghaf lies downstream of the new dam on Wadi Dayqah. Did the dam overflow during the cyclone? How are the water levels in the dam holding up, and how much alluvium was brought down into the dam during that period of discharge? Just a thought.

17:17:19 on 07/25/10 by Sue Hutton - Tourism - 2 comments - Permalink

Blue City facing liquidation?

Read Black cloud hangs over the future of Oman's Blue City in today's edition of The National, published in Abu Dhabi.

Apparently, the board of Al Sawadi Investment and Tourism Company (ASIT) has called a meeting for investors to vote on “dissolution of the company and filing subsidiaries.” The article says that the meeting has been postponed until Monday, pending last-minute proposals on restructuring from some Class A bondholders.

09:19:42 on 03/12/10 by Sue Hutton - Tourism - 1 comment - Permalink

Sailing and Cycling; Blue City abandoned by insurer

Oman Sail Masirah won the Extreme 40 Asia Cup held off the Muscat coast in the first week of February. Response from the Omani media seemed muted, as far as I could tell from sitting at my desk in snowy Leicestershire. But then there was a very low key response all round. Even my post announcing the event in January has come third in the Google results.

Perhaps it's not surprising, since sailing is a more exclusive form of sport. You need to be near the sea and able to afford a boat for one thing.

The Extreme Sailing Series website seems to be the best source of news. You'll see the results table and video there.

On the other hand, the Tour of Oman, a new international cycling event following close after the Tour of Qatar, kicked off in Matrah this week. Photos from Kishorcariappa's blog show a strong field of contenders and suggests that many spectators came out to watch. The first stage began from the Corniche in Matrah in the dark, accompanied by fireworks.

In fact, there were complaints from competitors that it was actually too dark to race and that spectators were not always aware of the speed of travel of the cyclists. Luckily, there were no reports of accidents.

See marvellous photographic coverage at the Cycling Weekly website, and current reports on the racing. Those links may not work in the weeks and months to come as the news is archived.

It's good to see major sporting events coming to Oman, which ought to attract foreign tourists, even though a small minority of the tweets I've seen have been less than enthusiastic about the influx of visitors.

Meanwhile, the sorry saga of Blue City limps on. An article in Abu Dhabi's The National on 18th February has revealed that Axis Capital, an insurance and reinsurance company, is cutting its losses and pulling out.

Axis had been insuring $399m of senior notes which Moody's downgraded last year.

Blue City, or Al Madina al Zarqa, has been a focus of the downturn in the Oman property market.

The article also quoted Suketu Sanghvi, the senior managing director of structuring and investments at Essdar Capital in Dubai, confirming that his company had bought top class bonds in the project at considerable discount last summer.

He blamed the litigation between the two original partners of the project for the loss of confidence

He continues to be hopeful, and expects more positive news in two months after a period of 're-structuring.'

It's a pity that the management don't pursue a policy of transparency, despite possible legal requirements for remaining silent on some aspects of the affair. Transparency is a sign of honesty and trustworthiness. There's no encouragement to invest in a deal when you can't find anything out about it.

Added 24th February 2010: The National has published Blue City takes a hit from Moody's. The $399 million bond tranche has been downgraded to "high credit risk" status.

The CEO of BCC1, Richard Russell, remains unavailable for comment.

Apparently the insurers, Axis Capital, are still in the game, but have increased their loss provisions for the project.

10:48:26 on 02/19/10 by Sue Hutton - Tourism - comments - Permalink

Club Med coming to Salalah

French Club Med's first resort in Arabia will be at Salalah, Governorate of Dhofar in southern Oman. The company signed a deal with Muriya Tourism Development company ten days ago.

Club Med specialises in luxurious, self-contained resorts with all manner of sports and activities for adults and families. The company offers luxury accommodation in many exotic locations. If all you want to do is to vegetate in the sun for two weeks, Club Med is hard to beat - I guess. I've never been on one of their holidays myself.

The Club Med philosophy dovetails very neatly with the Ministry of Tourism policy of encouraging 'high-class' tourism in set-apart locations. Salalah has a climate which would appeal much of the year to Europeans. Its summers of cloud bound mist, the Khareef, attracts many Gulf tourists as an escape from oppressive heat. For them, Rotana and Moevenpick will offer five-star accommodation.

Dr Rajha bint Abdulameer bin Ali, Minister of Tourism speaking to the Oman Observer, justified growth in tourism because tourists spend money and stimulate the local economy. Tourism projects also provide construction jobs for labourers - nationality unspecified - and enable them to improve the lifestyle of their families. Supplying these results with local produce would stimulate the growth of SMEs, although I have my doubts about that. I wonder why she had to explain these basics.

But you know, if I was spending all that money to fly to Salalah, I'd want to get out and see a bit more. Possibly the desert, or the 'lost city of Ubar.' At least get up into the misty hills to see rain-soaked vegetation in what you think of as desert, waterfalls and Job's Tomb. September is recommended. The air is clear of dust after the mists have gone and the flowers bloom after the monsoon rains.

22:21:35 on 01/22/10 by Sue Hutton - Tourism - - Permalink

A domestic link to Oman Sail

A prestigious sailing competition is in process in Europe. The iShares Cup is being fought over by ten sailing teams from around the world. Six events, each held over three days, are taking place for the Extreme 40, a scaled-up version of the Olympic class catamaran.

Oman is represented by two boats, the Renaissance and the Masirah, both falling within the ambit of 'Oman Sail', an ambitious programme to rekindle Oman's maritime heritage.

Mubarak al Battashi and Khamis al Anbouri from the Oman Sail Race Academy are rotating between both boats over the summer to obtain crewing experience. Any Omani is welcome to join the academy, providing they have commitment, loyalty and willingness to learn. There's also a hint that selection and training is "harder than special forces selection."

Renaissance is sponsored by Renaissance Group and Suhail Bahwan, and Masirah is backed by the Omani government.

Having already battled it out at Venice, the teams are currently sailing out of Hyeres in France. Masirah came first in today's races and is currently lying fourth on the team leaderboard. Renaissance lies third overall.

After Hyeres, four events are to come, including Cowes week at the beginning of August on the UK's Isle of Wight.

How is my family connected? My daughter, who lives and works on the Isle of Wight, has been responsible for supplying all the teams with disposable catering supplies. All the supplies are biodegradable, so that they can be tossed overboard into the sea after use with minimal impact, hopefully, on the environment.

Sailing is, on the whole, a 'high net worth' occupation, particularly when you're plying boats such as the Extreme 40. Bahrain has a Formula 1 Grand Prix, why shouldn't Oman aim at a superlative sailing competition?

That would presumably attract a lot of wealthy individuals to the country. It'll be interesting to see how Oman Sail develops.

23:14:45 on 07/03/09 by Sue Hutton - Tourism - comments - Permalink

What Google Trends might reveal about Oman holidays and Oman Air

The Economist published an item a couple of weeks ago, suggesting that Google Trends could help in forecasting economic trends. The argument hinges on whether the frequency of searches for specific keywords or phrases indicates changing patterns of consumer behaviour.

No less a person than Google's chief economist, who is also an economics professor at the University of California Berkeley campus, together with a fellow Google colleague, propose that because Google updates the data on searches daily, the frequency of search terms can be used to refine econometric models before official data is released.

Amongst other illustrations, it seems that searches for Hong Kong made in different countries predicted eventual arrivals in the territory from these countries rather well.

I thought I'd try out Google Trends to look at the pattern for searches on 'Oman holidays.'

Google Trends for searches on Oman Air

The image shows that usable data was available to Google only from the end of 2006, with a flat period in the first half of 2007. Searches using the expression 'Oman holidays' peaked around Christmas time in 2007, declined towards late Spring and early Summer 2008, before rising again towards December 2008. If you recall, all five star hotels in Muscat were closed for the AGCC conference between 23rd-30th December, effectively cancelling all Christmas and New Year bookings.

Searches on 'Oman holidays' have declined since then, although whether they will rise later in the year remains to be seen. Perhaps not, given the December 2008 experience and current economic restraints.

Then I examined the locations from where the search term 'Oman holidays' had originated. This was puzzling. The overwhelming number of searches seem to have been made in Oman itself, followed by the UAE.

Bar chart showing where Google searches on Oman holidays are made

So I looked for Hong Kong on Google Trends and discovered the same characteristic. Most searches on Hong Kong are made in Hong Kong itself. Which probably means that most searches for Oman do originate within Oman.

How about a comparison between 'Oman holidays' and 'Dubai holidays'? Perhaps unsurprisingly, there has been a much greater proportion of searches for 'Dubai holidays' (the red line on the graph) than 'Oman holidays' (the blue line on the graph). Incidentally, we're looking at relative results here rather than absolute numbers of searches, so don't take too much notice of the left hand axis of the graph.

Google Trends graph comparing searches for Oman holidays with searches for Dubai holidays

When looking at the provenance of searches on 'Dubai holidays', notice the greater volume originating in UK and Ireland for 'Dubai holidays' compared with 'Oman holidays.'

Bar chart showing where Google searches for Oman hoidays and Dubai holidays are made

Overall, there is no doubt that people are looking for Dubai holidays much more than they are for Oman holidays. Oman will have to work much harder at raising its public profile to obtain the same level of interest.

Given that Oman Air has been tasked with boosting tourism in Oman, I thought it might be instructive to compare trends for Google searches on 'Oman Air (the blue line on the graph below), 'Gulf Air' (the orange line on the graph below) and 'Emirates Airlines' (the red line on the graph below).

Google searches for Oman Air, Emirates Airlines, Gulf Air

The graph shows a small rise in searches for Oman Air beginning in 2007 at about the time that Oman left Gulf Air to focus on its national airline. The concomitant drop in searches for 'Gulf Air' from early 2007, is much steeper. But note that the number of searches for 'Emirates Airlines' increased sharply from the same time. The patterns on the graph suggest that Oman's withdrawal from Gulf Air rewarded Emirates Airways rather than Oman Air, always assuming that the trends on the graph in any way reflect numbers for passenger travel.

Note the steep rise in searches for 'Emirates Airlines' in the first months of 2009. I would suggest that this is because people were looking for flights out of the country rather than flying to it. The bar chart below shows that most of the searches were made in UAE, other Gulf countries and Pakistan.

Bar chart showing where searches for Oman Air, Emirates Airlines, Gulf Air, are made

Oman Air has had to rebuild itself from being a small, regional carrier in order to assume its new role as a mainline flag carrier, as admitted by Peter Hill late in 2008 New aircraft are to come into operation over the next two years, and the company has had to lease other aircraft in order to develop its new routes. Earlier this year, the Omani government raised the paid-up capital of the company from RO50 to RO300 in order to cover last year's losses caused by higher fuel costs and the purchase of new aircraft.

Data from Google Trends suggests that Oman Air will require a lot of PR support from its partner, the Ministry of Tourism, in order to promote Oman's tourism industry. At least in the short term, there is likely to be much more interest at the regional, rather than the global level.

Just to show you that the trends shown here are not necessarily diagnostic, try doing an investigation of 'Oman tourism.' You'll get rather different results. But then, 'tourism' does not have the same meaning as 'holidays.'

18:05:55 on 05/04/09 by Sue Hutton - Tourism - 2 comments - Permalink

Blue City rumbles on

I wouldn't be surprised if people yawned at yet another blog post about Al Madina al Zarqa (Blue City), but I want to mention two recent articles about the project for the sake of keeping references up to date.

To recap briefly, AAJ Holdings of Bahrain, headed by Mr Ahmed Abubaker Janahi, claims to hold 70% of the shares in Ocean Developments, the caretaker company for the 'Blue City' project, a tourist and urban mega-development proposed for the Al Sawadi area on Al Batinah, west of Muscat. See details of company holdings.

Mr Ahmed Abubaker Janahi brought his case to the attention of the Bahraini press early in February. Virtually identical articles appeared in both Gulf Daily News - Lawsuit 'is testing global confidence' and Trade Arabia - Blue City lawsuit 'testing global confidence'.

According to February's articles, "AAJ Holdings had acquired its 70pc shareholding in the project company in two stages; 58pc on May 22 2005 and 12pc on October 17, 2005."

Cyclone LLC, the Omani partner, with 30% of the shares, took AAJ Holdings to court claiming that,
"AAJ Holdings had violated the Commercial Companies Law in Oman, which states that partners in a company shall have the pre-emptive right to acquire shares that any partner in that company intends to dispose of to third parties.

Cyclone claimed that the terms of the sale offered to it to exercise its right of first refusal were not the same as the terms under which the sale of the project company shares was actually concluded."
The Primary Court in Muscat rejected Cyclone's case and confirmed "AAJ Holdings' shareholding in the project company and the validity of the share sale and purchase process."

Cyclone has appealed the decision. The verdict of Oman's Court of Appeal has yet to be announced.

Mr Janahi spoke of his confidence in the Omani Judiciary but also of his concern that a new expert had been appointed to adjudge the case. His lawyers had objected to the appointment of an academic from Sultan Qaboos University, who Mr Janahi says is not an accredited expert with the Ministry of Justice, nor allegedly experienced in commercial litigation. In fact, claims Mr Janahi, this is the expert's first case.

Furthermore, Mr Janahi claims that he sent a representative to company offices in Muscat following the court's verdict, in order to access company records and carry out administrative tasks, but that the representative was 'thrown out' by Cyclone's staff.

Mr Janahi maintained that global investor confidence in Oman could be tested by the prolonged dispute over ownership. Regardless of problems with the slowdown of construction and real estate development in other parts of the Gulf, he "believes the effects of the economic meltdown are less substantial in the GCC, as governments are actively involved in the regulation of investment activities and many of the regions' central banks adopt a conservative approach."

Maybe so, but the Gulf is not immune from the effects of the 'credit crunch.' Does Mr Janahi believe that government is going to step in to keep Blue City solvent? Or is he betting on taking over the company with its new management team?

The other article of note reports an interview with Mr Richard Russell, currently CEO of Blue City Company One, which has the task of delivering Phase 1 of the Blue City project, high-end residential and tourist sectors. The interview appears in this month's issue of Euromoney, which provides information briefings for financial institutions and professional investors.

Mr Russell affirms the original concept of the Blue City as a commercial centre. Indeed, he suggested that some people already speak of Al Madina al Zarqa as the potential trade centre of Oman, built on the "back of six economic drivers: tourism, entertainment, education, medicine and healthcare, sports and wellness, and trade." The scheme ties in with Vision 2020, conceived in 1995, to direct Oman away from reliance on sales of hydrocarbons as a source of revenue, towards economic diversification.

I noted that the previous CEO of BCC1, Professor Fari Akhlaghi, has been retained as an advisor to the Board of Directors.

Mr Russell was at pains to point out that the redesign of the master plan, by Norman Foster and partners, had put the project back by nine months. He says that he is now working with the ratings company Fitch, who put "$526 million of the debt on ratings watch negative in July after it fell behind revenue targets," to review the debt documentation and align it with actual sales.

Mr Russell made an interesting aside that the original design had been inefficient. Go back to review some history on the project. He did not shy from outlining the current dispute over legal ownership.

Euromoney challenged Mr Russell over freehold rights for foreigners. Mr Russell replied that Oman's laws concerning freehold and inheritance were very straightforward, without actually providing detail on what foreigners' status would be.

As I understand it, foreigners can buy property in designated tourist projects, but this does not give them a right to work in country. So you'd need a stash of cash to go and live in Oman, without being able to work there. I know that some residents with work permits have found ways around this, but that option isn't available to all.

Even though Blue City is being funded by private financing, one suspects that considerable influence is being wielded to keep the project afloat.

There are rumours that another real estate development at Yiti, on the other side of Muscat, which was being undertaken jointly between Sama Dubai and Omran, a fully government owned company with the aim of expanding tourism in Oman, appears to be in abeyance. You can still register your interest on the Sama Dubai website but you can't view the masterplan. Or at least, you couldn't when I looked earlier.

I have fond memories of camping on the beach at Yiti, overnight at Eid, with the waves breaking on the beach and the sound of gunfire as the men of the village fired off their rifles to celebrate the dawn. Bet modern tourists wouldn't experience that!

17:17:27 on 03/14/09 by Sue Hutton - Tourism - 6 comments - Permalink

British tourists up in arms over Christmas holiday let-down in Oman

That's pretty much how London's Daily Telegraph has described the directive of the Diwan of the Royal Court to the management of the Bar al-Jissah resort, that it should be made available to the Gulf Cooperation Council (GCC) heads of state and their delegations for the whole of Christmas week.

Not just one, but two articles on this dreadful denial of rights (I'm being wry/facetious) to the affluent tourists who had booked their holiday in Oman's winter sunshine for this period. Sultan ruins Christmas in Oman, and Oman holiday plans wrecked by Sultan.

I wrote about this a few days ago, explaining the probable rationale behind the move.

It's a pity that the newspaper didn't actually even attempt to work out the realpolitik behind Oman's decision. The GCC summit is traditionally held in the last quarter of the year. As Blue Chi pointed out in his comment on the Telegraph's article, it's a big deal in the Gulf region.

Oman should have hosted the summit last year (2007), but the venue was changed to Qatar because the Al Bustan Palace Hotel, built originally to accommodate the first time Oman had hosted the summit in 1985, was seriously damaged during Cyclone Gonu in June 2007. I don't know if it did re-open, but it's been closed again for major refurbishment, probably in preparation for this year's summit. Has project management goofed? Were specifications for the refurbishment changed, which delayed the opening time?

Whatever the story, Oman HAD to host this year's summit. The Bar al-Jissah resort was the next most suitable venue. It has its own road. I assume it can be reasonably secured. It is, I understand, luxurious. It can accommodate lots of people.

And perhaps it would be appropriate to remind outraged British tourists that the GCC countries are Moslem. Not only that, but King Abdullah of Saudi Arabia, the most prominent member of the AGCC, is Custodian of the Two Holy Mosques. In the strict interpretation of Islam, there is no such thing as Christmas.

The major Moslem holiday, Eid al-Adha, and the preceding Hajj, the pilgrimage to Mecca, which is one of the pillars of Islam, falls in the period from late November right through to the third week of December. There is more religiosity in the Gulf than there is in Britain, where Christmas is more of a commercial, rather than a religious, festival.

The summit could not take place until the Eid was over. Although one wonders if there is a hint of malice in the GCC leaders collectively deciding to time the event for that particular week, as if to punish Oman for its unpreparedness.

Western tourists can complain all they like about their losses, but they aren't currently the bigger picture as seen from the point of view of Gulf leaders. Frankly, I find the Telegraph's reaction embarrassingly parochial, even if it is true that tourists would be dissuaded from booking holidays in Oman for the Christmas period in the future. Oman only hosts the GCC summit every six years, so they should be safe for a while.

By the way, a statement by an unnamed official at Oman's Ministry of Foreign Affairs said that, "the GCC summit will not host any party from outside the AGCC member states," that is, no-one will be coming from Iran.

11:20:28 on 10/25/08 by Sue Hutton - Tourism - 7 comments - Permalink

No Christmas for the AGCC summit

If you had been hoping to spend Christmas and the New Year basking in the sun at the Bar al-Jissah resort and spa, you are likely to be disappointed.

According to a private message I have received, ALL the facilities at both the Al Bandar and Al Husn hotels at the Bar Al-Jissah resort are to be placed totally at the disposal of the Diwan of the Royal Court from 24th-30th December 2008 (inclusive), "to facilitate the requirements of the delegates attending the GCC Summit."

The message coincides with the assertion by secretary-general of the AGCC Abdul Rahman bin Hamad Al Attiyah, printed in the Times of Oman yesterday that:
“No new dates [for the AGCC summit] have yet been set as it is a procedural issue and it’s still under consultation.”
A Saudi newspaper suggested that the most likely dates for the conference would be 29th-30th December.

The Times of Oman report added that because the proposed dates for the AGCC summit fell in late November and coincided with the pilgrimage season of the Hajj, the meeting had been postponed.

Eid al-Adha is scheduled to start on 8th December, following the Hajj. Traditionally, it is a long holiday, particularly in Saudi Arabia.

In the past, Oman has hosted the AGCC summit at the Al Bustan Palace Intercontinental Hotel, but the Al Bustan is closed for refurbishment. So the organisers have gone for the next exclusive venue - the Shangri-la Resort.

I received my news from someone who had been planning a lavish, relaxing Christmas there. It will not happen. There will be no Christmas at Shangri-La.

He speculated that the action of closing the hotels would be extremely detrimental to the opinion of high net-worth tourists on Oman as a tourist destination, particularly as Christmas and New Year are the peak period for winter holidays in western countries. Otherwise you go skiing from January to March.

But I suspect that the feelings of expatriate tourists are not the focus of the AGCC summit organisers. Tourists with money can always go somewhere else.

Within the AGCC community, it is fraternity and brotherhood with fellow Arabs that counts - and Saudi Arabia is a big neighbour where Christmas is not recognised.

On another note, the Khaleej Times reported yesterday (21st October 2008) that 11,000 residents on the Batinah coast will be moved to make way for a 240 km coastal road and possibly also a railway.

The displaced citizens will be rehoused in "2,200 houses to be built at a cost of RO148 million under an agreement signed by the government here on 19th October with Al Rajhi Development Company (ARDC) in Barka, Musanah, Liwa and Shinas."

The plan was also announced in Sunday's Times of Oman, but with a different emphasis.

14:12:23 on 10/22/08 by Sue Hutton - Tourism - 2 comments - Permalink

Three videos of Oman

These three videos date back to January 2004, when I visited Muscat. It's taken me this long to download the video from the camcorder and to edit it. I apologise for the poor quality. I aim to improve!

I went to the Muscat Festival at Al Khuwair one rainy January evening, after storms had been raging over the mountains. There weren't so many people there as a result.

I suspect that nationals would flinch at my emphasis on traditional crafts and dancing, but as a Western tourist, it's the kind of thing that I'm interested in. More photos of the Muscat Festival...



I was able to tour the Sultan Qaboos Grand Mosque in Al Ghubrah, at the second time of trying, because I was considered to be 'undressed' when I went the first time. Not that it will make much impact on readers, but this kind of reaction from over-zealous doormen is a real affront to female tourists. I suspect that, as a lone female visiting, I was judged more harshly. Even one stray lock of hair led to admonishment.

However, the gardens and the birdsong were a delight. More photos of the Grand Mosque...



Finally, here is a glimpse of the Al Kasfah Spring at Rustaq. The constantly upwelling water has a temperature of around 46 degrees centigrade. Many people visit the spring to bathe in its waters which are believed to have therapeutic properties. Above the spring is a mosque. This is the start of a falaj system within this area of Rustaq. Water flows through the bath house into a bathing area for women, and is then used downstream progressively for washing clothes, domestic use and finally for irrigating agriculture. Photos of Nakhl and Rustaq...



19:50:13 on 10/04/08 by Sue Hutton - Tourism - 2 comments - Permalink

Majlis al-Djinn cave closed

I read a couple of weeks ago of the closure of the Majlis al-Djinn cave (Chamber of the Genie, in translation) to the public. It was discovered by Don Davison, an American hydrogeologist mapping the limestone plateau of Sharquiyah for the then Public Authority for Water Resources, in 1983. The PAWR published a full-colour brochure about the cave illustrating its immensity.

If you are able to track down a copy, the reference to this brochure is:

Davison Jr, W. Don 1985 Majlis Al Jinn Cave, Sultanate of Oman Public Authority for Water Resources, Report PAWR-20, October 1985

Adventure and ecotourism companies are irked, apparently, because they can no longer take paying visitors to go and see the site. I have some sympathy with the authorities over this. It's far more clear-cut to issue a total ban, rather than a permissive one when rangers might not be able to argue over permits and safety measures with persuasive guides. The location of the cave is relatively remote. Should a rescue operation be required, I suspect the public cost and logistics would be deemed untenable.

No such foibles seem to deter trekkers on the Snake Gorge challenge in Wadi bani Awf, which carves through the Al Hajar mountains south of Rustaq. You will note a warning on the page that the walk is dangerous. A friend of mine had to be airlifted out in 2001 after he misjudged a jump from a rock into a pool and hurt his back seriously.

I also remember the tragedy of June 1996 when eight hikers were swept down the gorge and drowned in a flash flood. I happen to remember returning from a walk on the beach in Muscat before 10 am that morning. Already, the clouds were tumbling over the top of the mountains, a sure sign of thunderstorms and rain later in the day.

Never be caught in a wadi if there is the slightest suspicion of rain.

12:44:58 on 04/15/08 by Sue Hutton - Tourism - 1 comment - Permalink

"Everything that can be invented has been invented." ~Charles H. Duell, Commissioner, U.S. Office of Patents, 1899~

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