Earlier
this year the Ministry of Tourism issued the Executive Regulations of the
Tourism Law by way of Ministerial Decision 39/2016 (the “New Executive Regulations”). The New Executive Regulations supersede the
Executive Regulations issued by Ministerial Decision 91/2003 (the “Old Executive Regulations”). The New Executive Regulations came into force
on 1 September 2016 (by way of an amending Ministerial Decision 50/2016).
Whilst
the Tourism Law, promulgated by Royal Decree 33/2002 has not been amended, the
New Executive Regulations are drafted to bring greater clarity to the booming
tourism industry of the Sultanate. The New Executive Regulations also include
new categories of hotels, tourist establishments, etc. which are now part of
Oman’s tourism industry.
This
article aims to provide a brief overview of the New Executive Regulations,
their features and where required a comparison with the Old Executive
Regulations.
Licensing
provisions
One
of the most significant changes to the licensing provisions brought about by
the New Executive Regulations is the issuance of a preliminary approval. The Ministry of Tourism will now issue a preliminary
approval to the licence applicant in order to fulfill the required conditions
for the tourism project and to obtain required approvals from competent
authorities. The preliminary approval
will be effective for one year from the date of issuance and shall not be
extended or renewed.
By
introducing the concept of a preliminary approval, the Ministry has done away
with the mandatory requirement to launch the establishment within six months of
the date of issuance of license, as provided in the Old Executive Regulations.
Further,
in order to ensure that the tourist establishments are managed and operated in
a professional manner, Appendix 3 of the New Executive Regulations sets out the
minimum qualifications and experience required from the managers of the hotels
and tourist establishments. The
qualifications and experience requirement has been further classified into requirements
from an Omani and a non-Omani manager.
Revocation
of license
Whilst
retaining many of the licensing, renewal and revocation provisions from the Old
Executive Regulations, the New Executive Regulations have reduced the number of
days within which a renewal application should be made. Further, if the
business of an establishment is suspended for reasons within the control of the
licensee for a period of six consecutive months, then the Ministry has the
right to revoke the licence. The Old
Executive Regulations gave 24 months’ time for revocation of a licence in the
event the business is suspended.
Unlike
the Old Executive Regulations, the New Executive Regulations now provide a cure
period of 30 working days to the licensee prior to suspension or revocation of
the licence to allow the licensee to rectify the violation or breach.
The
New Executive Regulations also provide a mechanism for filing grievance(s)
against any decision issued in accordance with the New Executive Regulations.
Increase
in fees
Appendix
1 of the New Executive Regulations sets out the types of tourist establishments
and the fees and duration for each of their respective licences. Compared to the Old Executive Regulations, the
fees payable under the New Executive Regulations are almost ten times higher.
Further,
the requirements relating to provision of a Letter of Guarantee and the
circumstances in which it can be liquidated have been relaxed.
Recognition
of Archeological Sites and Tourist Villages
Whilst
the Old Executive Regulations recognised and provided for tourism
establishments such as hotels, restaurants, hotel apartments and tourist camps,
the New Executive Regulations now provide rules related to identified ‘Archaeological
Sites,’ specified as castles, forts and other archaeological sites subject to
the supervision of the Ministry of Tourism.
The
New Executive Regulations also include ‘Tourist Villages’ on a site
encompassing a number of utilities and services including lodges but
essentially having a unique architectural identity that is subject to a single
management.
Article
25 of the New Executive Regulations provide that the tourist places and sites, governmental
tourist lands and Archeological Sites shall be utilised pursuant to usufruct,
lease, management or performance contacts in accordance with the unified forms
prepared by the Ministry of Tourism.
As
the Sultanate is also evolving into a destination for adventure sports
enthusiasts and hikers, the New Executive Regulations specify that the Ministry
of Tourism may specify mountain passages and paths in the Governorates and
license a party to manage such passages and paths.
Musical
groups
Amongst
other requirements, the New Executive Regulations specify that only five- or
four-star hotels, or a hotel that is managed by an international company in the
field of hotel management, can apply for recruitment of musical groups. It is also essential that the performance of
the musical group correlates with the type of restaurant and the cuisine
served.
All
other requirements in terms of recruiting a musical group remain largely
similar to the Old Executive Regulations, including the three months’ license
period which can be extended for one or more terms.
Tourism
guidance
The tourism guidance licence in the Old
Executive Regulations was limited to only Omani individuals provided they
fulfill all the requirements for grant of such tourism license. The New Executive Regulations have broadened
the scope by granting a temporary licence to any person to be trained in the
ways of tourism guidance for a period of not more than one month.
