Thursday 18 / September / 2025
Muscat: Oman Tourism Development Company (OMRAN Group), the executive arm of the Government of Oman for tourism development, today signed a term sheet for a strategic alliance with TUI Group (one of the world’s leading tourism and travel companies) to strengthen Oman’s position as a year-round global tourism destination.
The term sheet sets out key terms and conditions under which OMRAN Group and TUI Group intend to collaborate to strengthen Oman’s position as a year-round global tourism destination. It serves as the blueprint for a comprehensive partnership agreement that will follow after negotiations and regulatory procedures.
Under the term sheet, both parties have expressed their intention to jointly develop an initial package of 5 hotels and resorts in Dhofar Governorate, scheduled to receive guests from around the world starting in 2028. These properties are planned to be operated under TUI’s internationally recognized brands – including ROBINSON, TUI Blue, RIU, Jaz, and The Mora – offering diverse hospitality experiences that will enrich Dhofar’s tourism offering and strengthen its position as a competitive year-round destination.
The step underscores the central role of tourism in Oman Vision 2040 and aligns with OMRAN Group’s mission to drive tourism growth, attract foreign direct investment, and empower local communities, while at the same time ensuring long-term socio-economic impact.
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 would, not only attract a greater number of visitors, but also generate high-quality employment opportunities and draw impactful, value-driven investments. These initiatives support the Ministry’s comprehensive tourism development plan across all governorates, raising the level of competitiveness through exceptional services and diverse experiences that cater to the evolving preferences of international travellers.”
“By combining international expertise with our local vision, we are taking the first step toward unlocking the country’s full potential as a year-long tourism destination, driving sustainable economic growth, in line with Oman Vision 2040,” he added.
For his part, Sebastian Ebel, Chief Executive Officer of TUI Group, said that the signing of this term sheet represents an important step in portraying Oman as a promising tourism destination. “As in other parts of the world, TUI develops integrated destinations – with examples in West Africa, Central America, and Asia. Together with our partners in Oman, we aim to develop a destination that stands out for quality, sustainability, and uniqueness”, he explained.
Meanwhile, Peter Krueger, Chief Strategy Officer and CEO of Holiday Experiences at TUI Group, affirmed the strong demand from international travellers to visit Oman. He pointed out this alliance will pave the way for new tourism opportunities in the Sultanate.
The signing of the term sheet initiates a process for establishing a joint venture structure under which OMRAN Group and TUI Group are expected to each hold 45% equity, with a private investor taking the remaining 10% stake.
“It also outlines OMRAN Group’s intention to become a strategic shareholder in TUI Group, with a 1.4% equity stake, subject to final agreements and regulatory approvals,” he added.
Both parties have reaffirmed their shared commitment to sustainability and pledged to develop the planned projects in line with the highest international standards and in accordance with OMRAN Group’s strategy that focuses on economy, society, culture and environment.
The projects are expected to generate direct and indirect employment opportunities, motive the participation of small and medium enterprises (SMEs) and further enhance the appeal of Oman — notably Dhofar Governorate — as a competitive year-long tourism destination.
