Oman Witness its Tourism and Hospitality Sectors Strong Growth in this Year, Contributing to Economic Diversification Under Oman Vision 2040

Published on November 23, 2025

The tourism and hospitality sectors in Oman have performed well in the first nine months of 2025 and continue to play a vital role in the country’s diversified economic development process under Oman Vision 2040. According to the data from the Ministry of Heritage and Tourism, direct added value reached RO873mn while the total tourism output reached RO1.99bn, indicating how important the sector has become to the nation’s changing economy. The sector’s contribution to GDP was 2.7%, making it increasingly an important pillar of economic development. The tourism sector is well-placed to become an even more significant economic driver with ongoing investments in infrastructure, technology, and international promotions, increasing its influence in the coming years.

Positive Hotel Sector Performance: Increased Revenues and Occupancy Rates

In the hospitality segment, revenues from hotels saw a 6.1% increase, reaching RO293.4mn by the end of September 2025. This growth was driven by higher occupancy rates and a diverse array of travel programmes catering to different types of tourists. The performance of Oman’s hotels reflects a growing demand for both luxury and budget travel options, with significant contributions from both international and domestic markets.

Overall occupancy rates in hotels averaged 36.8%, with three- to five-star properties achieving a much higher rate of 52.6%, supported by sustained interest in Oman’s heritage, adventure, and environmental tourism offerings. The growth in hotel performance is part of a broader effort to make Oman a leading destination for tourists seeking a blend of traditional culture and modern amenities.

Visitor Arrivals: Balancing International and Domestic Growth

Oman welcomed 2.83 million international visitors in the first three quarters of 2025, representing a 2.4% decline from the previous year. However, the number of domestic trips increased by 5.1%, with 13.6 million domestic trips taken, reflecting strong interest in local events and festivals.

The rise in domestic tourism is a key trend, as it not only highlights the appeal of local experiences but also ensures that the economic benefits of tourism are spread across Oman’s regions. The continued growth in domestic tourism is an important factor in reducing seasonal fluctuations in visitor numbers and contributing to more sustainable tourism development across the country.

Strategic Global Outreach: Expanding International Tourism Networks

As part of its global outreach efforts, the Ministry of Heritage and Tourism has opened new tourism representation offices in China, Russia, and Spain. This expansion is part of Oman’s strategy to attract a broader range of international tourists and increase its presence in key travel markets. An additional office for Singapore, Indonesia, Malaysia, and Thailand is also in the works. With 11 offices operating globally and conducting campaigns in 25 markets, Oman’s tourism promotion has resulted in direct returns of RO30mn.

The ministry’s efforts also include participating in over 20 international tourism exhibitions and launching promotional content through major platforms like CNN, further enhancing the country’s visibility on the global stage. These international engagements are not only vital for attracting high-value tourists but also contribute to Oman’s long-term tourism growth and development of a diverse international visitor base.

Cruise and Charter Travel: A Growing Segment for Oman’s Tourism Industry

The cruise and charter travel segment has also seen positive growth, with the ministry implementing new recommendations to regulate cruise operations and improve port facilities. During the 2024–2025 season, charter flights increased to 588 from 466 the previous season, bringing in 93,000 tourists and generating an estimated US$80mn in revenue. The growing interest in charter tourism reflects a shift in travel preferences toward more tailored, exclusive travel experiences.

The development of port facilities and the regulation of cruise operations align with Oman’s goals to diversify its tourism products and improve its position as a hub for luxury and experiential tourism in the region. This niche market continues to grow, driven by tourists seeking personalized, upscale experiences.

Expanding Hotel Infrastructure: Supporting Sustained Growth

Oman’s hotel infrastructure continues to grow steadily, with a total of 1,309 establishments registered by September 2025, up from 1,022 the previous year. The number of hotel rooms also grew to 38,000, reflecting a 7.9% increase in capacity. These developments are critical in meeting the increasing demand for accommodation and supporting the overall growth of Oman’s hospitality sector.

Authorities have already issued 383 preliminary approvals for new accommodation projects, with 114 developments currently under construction, expected to open between 2025 and 2027. Investments in integrated tourism complexes exceeded RO11.5bn, reflecting strong investor confidence in Oman’s tourism potential. These new developments will play a crucial role in supporting future growth and expanding the country’s ability to host more international guests.

Job Creation and Workforce Development in the Tourism Sector

The tourism sector is a major source of employment in Oman, with 169,800 workers in the industry by September 2025. The Omanisation rate in the sector rose to 10.9%, reflecting the government’s efforts to provide job opportunities for local workers in the growing hospitality and tourism industries. The ministry has signed 36 concession agreements worth RO100mn for new projects, helping to create jobs and develop a skilled workforce that can support Oman’s expanding tourism offerings.

Heritage Preservation and Sustainable Tourism

As part of its broader tourism strategy, Oman continues to invest in heritage preservation, with 3,655 archaeological and historical sites recorded and 1,328 sites restored. This commitment to preserving Oman’s rich history is a crucial aspect of the country’s sustainable tourism strategy, as cultural tourism continues to attract global visitors seeking authentic experiences.

The Bisya and Salut sites are being prepared for World Heritage nomination, showcasing Oman’s dedication to balancing tourism growth with the preservation of its natural and cultural assets.

Hotel Performance and Sustained Interest in Heritage and Adventure Tourism

Safer and more environmentally-conscious travel practices have contributed to a strong performance in Oman’s hotel sector. In September 2025, hotel occupancy rates in Muscat reached 66.7%, while Salalah saw 56.7% occupancy, supported by sustained interest in heritage, adventure, and environmental tourism. These trends highlight the growing importance of experiential tourism in the region, where visitors seek more than just a place to stay—they want to engage with the culture and environment of their destination.

Future Tourism Impact: Shaping the Next Phase of Growth

Looking forward, the future of Oman’s tourism industry is bright. The continued expansion of hotel infrastructure, coupled with sustainability efforts, will play a key role in positioning Oman as a leading destination for luxury tourism, eco-tourism, and cultural exploration in the region. Oman Vision 2040 sets the stage for continued diversification of the sector, with an emphasis on innovative tourism products that reflect the country’s rich cultural heritage and commitment to environmental responsibility.

As global tourism continues to evolve, Oman’s focus on sustainable growth, cultural preservation, and local community engagement will ensure that the country remains an attractive, competitive and responsible tourism hub for years to come.

Tourism’s Central Role in Oman’s Vision 2040

The performance of Oman’s tourism and hospitality sectors in 2025 underlines the ever-increasing role that tourism diversification plays within the nation’s broader economic strategy under Vision 2040. Strong performances within key areas of hotel revenues, tourist arrivals, investment in infrastructure, and regional promotion ensure that the tourism sector is prominently placed as a cornerstone of Oman’s future economic landscape.

In addition, the continued emphasis on sustainable tourism, heritage preservation, and job creation means that the tourism sector in Oman will continue to be dynamic, offering long-term growth opportunities for the country’s economy and contributing to Oman Vision 2040’s goals for a more diversified, competitive, and sustainable tourism industry.