Oman’s Tourism Sector on Track for Continued Growth as Hotel Revenues Soar

Published on December 29, 2025

Muscat, Oman, December 29, 2025 — The hospitality industry in Oman has registered remarkable growth during 2025, with hotel receipts totaling a record high of RO 193.4 million, or $505 million, for the first nine months with significant demand for both local and foreign tourists. The changing landscape and government efforts to develop the tourist infrastructure, as well as Oman’s popularity as a destination, are contributing significantly to the growth of the hospitality industry.

Significant Hotel Revenue Growth Amid Robust Demand

According to Cavendish Maxwell, a leading real estate advisory and property consultancy, Oman’s hotel revenue saw an impressive 18% year-on-year increase from January to September 2025. This marked a new nine-month high for the country’s hospitality industry, with room revenues rising by nearly 21%. Hotel guest numbers grew by 9%, while hotel occupancy rates rose by 13%, signaling the strong demand for Oman’s hospitality offerings.

“Demand from both domestic and international travellers has driven growth in Oman’s hospitality sector,” said Khalil al Zadjali, Head of Oman at Cavendish Maxwell. “The combination of government investment, targeted marketing, and evolving travel patterns is a winning formula for the sector’s success, positioning it for further expansion in 2026 and beyond.”

Hotel Infrastructure Expansion: New Rooms and Investments

By the end of September 2025, Oman had 36,300 hotel rooms in operation, with another 1,000 set for completion in the fourth quarter of 2025. Over the next two years, the number of hotel rooms is set to increase further, with an additional 3,000 rooms planned. By 2027, Oman’s hotel room inventory is expected to reach 40,300, positioning the country to meet growing demand from both tourists and business travellers.

The Ministry of Heritage and Tourism is further contributing to this growth by allocating RO 100 million ($260 million) towards usufruct agreements, aimed at the development of hotels, resorts, and integrated tourism projects across the country. These investments will help expand Oman’s tourism infrastructure and create a more diverse range of accommodations and attractions for visitors.

Growth in Hotel Occupancy and Guest Numbers

The increase in hotel occupancy rates is a key indicator of the sector’s growth, with occupancy reaching almost 53% during the first nine months of 2025. This represents a 13% year-on-year increase, driven by a rising demand for leisure travel, particularly in Oman’s cooler summer months, supported by the #WithinOman tourism initiative. Additionally, the Khareef Dhofar Season, which runs from late June to early September, continues to play a critical role in boosting visitor numbers to Oman’s southern region.

Oman’s 3-5 star hotels welcomed 1.7 million guests during the first nine months of 2025, up from 1.5 million in the same period of 2024. This growth is particularly notable as it reflects the country’s success in attracting international tourists, alongside a steady stream of domestic visitors.

Diverse Guest Demographics and International Reach

The guest demographic at Oman’s hotels continues to diversify. Omani nationals represented the largest share of hotel guests, making up 38.1% of visitors between January and September 2025, followed by Europeans at nearly 25%. Asians accounted for 14.4%, while GCC visitors also formed a significant portion of the guest base. The broadening of Oman’s appeal to a variety of international markets highlights its growing status as a global travel destination.

Tourism from Europe is particularly noteworthy, with 425,000 European tourists visiting Oman during the first nine months of 2025. This trend aligns with the increasing recognition of Oman as a top destination for European travellers seeking cultural, historical, and natural experiences.

Transportation Growth: More Passengers, Greater Connectivity

The growth in Oman’s hospitality sector is closely linked to the country’s expanding transportation infrastructure. In the first nine months of 2025, Oman’s airports handled 11.2 million passengers, a modest increase of 0.7% compared to the same period in 2024. This increase is expected to continue, with total passenger traffic across Oman’s airports projected to reach 14.9 million by the end of the year, up from 14.5 million in 2024.

The majority of international passengers—87.4%—traveled through Muscat International Airport, which serves as the primary gateway for visitors arriving in Oman. Oman’s expanding air connectivity is helping attract more tourists, particularly those from Europe, Asia, and the GCC region, thereby contributing to the growth in hotel occupancy and visitor numbers.

Government Support: Strategic Marketing and Investment

Oman’s Ministry of Heritage and Tourism has been a major driver of the hospitality sector’s growth. In addition to the RO 100 million allocated for hotel and resort development, the government has been actively working to position Oman as a year-round destination. Marketing campaigns, such as the #WithinOman initiative, have successfully encouraged domestic tourism while attracting international visitors.

The ministry’s continued efforts in promoting the country’s natural beauty, cultural heritage, and modern amenities are expected to sustain the hospitality sector’s growth in 2026. Oman’s diverse tourism offerings—ranging from desert adventures to coastal retreats—make it an attractive destination for a wide range of travellers.

Looking Ahead: A Promising Future for Oman’s Hospitality Sector

It is with continuing hotel revenues that see growth, a growing inventory of hotel rooms available, and increasing tourist numbers that Oman’s hospitality sector is well-placed for enduring success. Therefore, with an ever-improving tourism infrastructure and rising international profile, the country is in an enviable position to assume the lead among the top travel destinations not only within the Middle East but on an international basis.