The challenges of formal entrepreneurship in the heritage tourism sector: Evidence from entrepreneurs in Nizwa

This study examines the challenges faced by formal entrepreneurship in the heritage tourism sector in Nizwa, Oman. Despite Nizwa’s rich cultural heritage and natural beauty, entrepreneurs encounter significant barriers to establishing formal businesses. These include limited access to support programs, inadequate training, financial constraints, and complex government regulations. Using a mixed-methods approach, the research combined qualitative tools such as surveys, case studies, and literature reviews to gain a comprehensive understanding of the issue. The findings highlight key challenges, including bureaucratic hurdles, a lack of institutional support, and low awareness of the benefits of formalization. However, the growth of formal tourism enterprises was also shown to improve service quality, build investor and consumer confidence, and strengthen regulatory oversight. At the same time, it may increase competition and operational costs. This study offers practical recommendations for policymakers to enhance the entrepreneurial ecosystem and adds to the limited academic literature on formal tourism entrepreneurship in inland regions of Oman. Keywords: Heritage Tourism, Entrepreneurs, Formal Business, Nizwa, Challenges.