An initial five hotels are planned in Oman's Dhofar governorate on the Arabian Sea where Tui and Oman's government believe there is an opportunity to put the country on the world tourism map and transform it into "a leading sun and beach destination".

Tui is working with Oman's tourism development company Omran Group to open up the destination, both holding a 45% stake in the joint venture; Omran will contribute land and capital, while Tui will contribute its experience in hotel operations, distribution and local experiences, as well as airlift. A separate private investor will hold the other 10% stake.

Oman, through Omran, will also take a 1.4% strategic shareholding in Tui Group itself.

Peter Krueger, Tui's chief strategy officer and chief executive of its holiday experiences division, said through its Robinson, Tui Blue, Riu, Jaz and The Mora hotel brands, it could deliver their "captive customer base and loyal guests to Oman".

"There is high demand among holidaymakers for Oman – but so far limited supply," said Krueger. "We see this new destination cluster as a great opportunity."

Sebastian Ebel, Tui Group chief executive, pointed to Tui's operations in Africa, central America and the Caribbean as examples of it developing successful vertically integrated destination clusters, comprising hotels, experiences and cruises.

"With this partnership, we are taking a decisive step towards establishing Oman as a successful holiday destination," said Ebel. "We are working with our partners to develop a destination that stands out for its quality, sustainability and uniqueness."

Azzan Qassim Al Busaidi, Oman's tourism undersecretary and chair of Omran, aded: "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 destination."

Tui said the project would be developed "to the highest sustainability standards, which integrate economic, social, cultural, and environmental priorities".