Oman Set to Transform its Tourism Sector: 9,600 New Hotel Rooms and Strategic Investments to Boost the Country’s Hospitality Industry by 2030

Written By: Anirban Bhattacharya

Anirban Bhattacharya

I am a Content Writer at Travel And Tour World, where I have been covering the global travel and tourism industry since June 2024. With five years of experience in digital journalism and SEO-focused content, I specialize in reporting on travel, tourism, aviation, hospitality, railways, and international developments. My work is built on thorough research, fact-checking, and clear, reader-focused reporting that transforms complex industry updates into accurate and accessible news. I am committed to producing credible, informative, and timely content that helps travelers and industry professionals stay informed about the latest trends, destinations, policies, and developments shaping the global travel landscape.

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October 7, 2025 9:35 PM

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Oman’s hospitality and tourism industry is entering a new era, driven by ambitious expansion plans and significant investments that are set to transform the country’s tourism infrastructure. With the addition of 9,600 new hotel rooms by 2030, the Sultanate is positioning itself as a premier travel destination in the region. Cavendish Maxwell, a leading real estate advisory group, has revealed that 2,600 of these rooms are scheduled for completion by the end of 2025, providing a significant boost to Oman tourism capacity. The planned rooms will increase Oman’s existing hotel inventory of 36,000 rooms by more than 25%.

Oman has seen a steady rise in hotel revenues, with 3-5 star hotels recording a 18.2% increase in revenue in the first half of 2025, reaching OMR 141.2 million (around US$367 million). These figures reflect a growing number of domestic and international travelers flocking to the country, benefiting from government initiatives aimed at making Oman a year-round global destination.

The government’s strategic investments, coupled with the expansion of new hotels and resorts, underscore Oman’s ambitions to diversify tourism and make it a central driver of economic growth. With the tourism sector expected to contribute 5% of GDP by 2030 and 10% by 2040, Oman is rapidly positioning itself as a vital part of the global tourism landscape.

Key Highlights of Oman’s Tourism Expansion:

• 9,600 new hotel rooms planned by 2030 to support the growing tourism demand.
• 2,600 new hotel rooms set to be completed by the end of 2025.
• 18.2% increase in hotel revenues in the first half of 2025.
• Domestic and international visitor growth, with 1.1 million guests in the first half of 2025, a 9.2% increase from 2024.
• 5% of GDP expected from tourism by 2030, with the goal of reaching 10% by 2040.
• Government-backed initiatives focusing on luxury and sustainable tourism across the country.

Rapid Growth in Hotel Occupancy and Revenues
According to Cavendish Maxwell’s latest Oman Hospitality Market Performance analysis, hotel occupancy in the first half of 2025 reached nearly 55%, marking a 14% increase over the same period in 2024. The average room rate during this period stood at OMR 47.7 (US$124), showing a modest increase compared to the previous year. These figures reflect the country’s growing appeal as a global tourist destination, driven by strong demand from both domestic and international visitors.

Visitor Demographics
The domestic market continues to play a key role in Oman’s tourism growth. In 2025, Omani nationals accounted for over 33% of hotel guests, reflecting the rising trend of domestic travel. European tourists were the second-largest group, followed by Asian travelers. The Gulf Cooperation Council (GCC) region remains an important source market, while increased arrivals from India, China, and Europe point to Oman’s growing global appeal. The upcoming hotel expansions are expected to cater to the growing demand from these international markets, further diversifying the tourism demographic.

Oman’s Government Investments in Tourism
The government is also focusing on diversifying tourism beyond its capital, Muscat, with expansions in key destinations such as Salalah, Jabal Akhdar, and other popular tourist spots. Investments in tourism infrastructure include new airports and enhanced tourism amenities, ensuring Oman is well-equipped to handle the increasing number of visitors. The introduction of six new regional airports by 2030 will significantly improve connectivity and accessibility across the country.

• Muscat remains the key gateway for most visitors, with Muscat International Airport handling over 90% of Oman’s air traffic.
• Salalah International Airport, known for its seasonal appeal, welcomes approximately 9.5% of travelers.
• Future growth is anticipated at Duqm Airport and Sohar International Airport, two regional hubs expected to become increasingly important.

Tourism Initiatives and Development Projects
As part of Oman’s commitment to enhancing its tourism offerings, the Ministry of Heritage and Tourism has launched various promotional campaigns to position the country as a premier destination in key international markets. New tourism representative offices will be opened in regions such as Russia, Spain, Latin America, China, and Asia, with plans to work closely with 80 international tourism companies to raise awareness of Oman’s unique attractions.

Several high-profile tourism developments are underway:

• Muscat will soon welcome the Oman Botanic Garden, scheduled for completion by the end of 2025, further enriching the city’s cultural landscape.
• The Muttrah Cable Car will open in 2026, offering visitors a unique view of the historic city.
• Salalah is becoming a year-round destination, with upcoming developments such as the Boulevard Raza and the Salalah Eye, which will enhance the region’s appeal as a leisure and entertainment hub.
• The Jabal Akhdar region is set to see significant growth with the development of a mixed-use mountain destination, featuring 2,500 homes, 2,000 hotel rooms, and a health and wellness village at an elevation of 2,400 meters.

Oman’s Strategic Focus on Sustainable Tourism
Oman’s government is committed to promoting sustainable tourism that preserves the natural beauty of the country while supporting the economic growth of the hospitality sector. This includes eco-friendly developments in regions like Jabal Akhdar, where sustainable tourism initiatives are being integrated into the design of new resorts and accommodations. The focus on green building practices, eco-conscious resorts, and responsible tourism is expected to position Oman as a leader in sustainable tourism within the Gulf region.

Looking Ahead: Oman’s Tourism Growth and Opportunities
Oman’s tourism industry is entering a phase of robust growth, fueled by significant government investments, the expansion of tourism infrastructure, and the increasing diversification of its offerings. With a focus on attracting high-spending visitors and expanding beyond traditional markets, Oman is set to solidify its position as a global tourism destination by 2030.

As the country aims for 5% GDP contribution from tourism by 2030 and 10% by 2040, the hospitality sector will play a key role in this transformation. New hotels, resorts, and tourism infrastructure projects will continue to emerge, creating significant opportunities for investment, construction, and development in the country’s rapidly evolving tourism landscape.

Key Takeaways:

• Oman plans to add 9,600 hotel rooms by 2030, increasing its current hotel inventory by more than 25%.
• Oman’s hotel revenue in the first half of 2025 saw an 18.2% increase, with growing international and domestic demand.
• The country’s tourism sector is expected to contribute 5% of GDP by 2030, with a focus on sustainability and diversification.
• The government’s tourism initiatives include new airports, MICE facilities, and luxury resorts across Oman.
• Jabal Akhdar, Muscat, and Salalah are key areas for future tourism development.

This expansion and strategic investment in Oman’s tourism sector position the country as a strong contender on the global tourism map, attracting visitors from around the world while ensuring sustainable and long-term growth.