Oman’s Tourism and Hospitality Sector: A Strong Future with 18 Percent Growth in Hotel Revenues

The hospitality sector in Oman is experiencing a robust surge, with hotel revenues rising by more than 18% in the first nine months of 2025, according to Cavendish Maxwell. This growth signals strong momentum in Oman’s tourism industry, positioning it as a growing regional hub for international and domestic travellers. The increase in hotel revenues, totalling OMR 193.4 million (US$505 million), is reflective of a wider trend of higher occupancy rates, stronger guest numbers, and an expanding portfolio of hotel room inventory.

With 36,300 hotel rooms in operation by the end of September 2025, and an additional 1,000 rooms scheduled for completion by the end of the year, Oman’s hospitality sector is poised for continued growth, with room inventory expected to reach 40,300 by 2027. This expansion is a direct response to growing demand for quality accommodations as Oman solidifies its place as a key tourism and business destination in the Middle East.

Rising Hotel Demand and Visitor Numbers

Hotel performance in Oman has significantly benefited from rising demand for 3-5 star accommodations, with occupancy rates climbing by 13% in 2025. The first nine months of the year saw nearly 1.7 million hotel guests across the country, an increase from 1.5 million during the same period in 2024. The Khareef season, a popular time for domestic and regional visitors, helped drive higher occupancy, especially in destinations like Salalah, a key airport hub for the Khareef festival.

The #WithinOman tourism initiative has also supported this growth, driving leisure travel and boosting the overall performance of hotels across the nation. Cities like Muscat have been pivotal in attracting both business and leisure travelers, making Oman an attractive destination for those seeking a blend of luxury and cultural immersion.

Strategic Investments Driving Hospitality Expansion

The growth in hotel revenues is bolstered by ongoing investments in infrastructure and marketing campaigns aimed at attracting both international visitors and regional travelers. Oman’s Ministry of Heritage and Tourism has played a crucial role by securing OMR 100 million (US$260 million) in usufruct agreements for hotels, resorts, and integrated developments. These investments aim to further elevate Oman’s appeal as a year-round tourism destination while enhancing its competitiveness in the region.

The hospitality sector’s expansion is not just about more rooms; it’s about ensuring that guests have access to world-class amenities, unique cultural experiences, and an enriched travel experience. From luxury resorts on the coast to eco-friendly hotels in the desert, Oman’s accommodation options are increasingly diverse, catering to a broad spectrum of travel preferences and tourism segments.

A Bright Future for Oman’s Tourism Sector

As Oman continues to develop its hospitality infrastructure, the sector is expected to remain resilient and dynamic, offering visitors unparalleled experiences. With the construction of new hotels, the expansion of existing properties, and the introduction of innovative tourism initiatives, Oman’s tourism landscape is set for continued growth in 2026 and beyond.

Tourism-related job growth in the hospitality sector also reflects this upward trend, with the industry seeing a 5.3% increase in employment. This expansion is indicative of the increasing importance of tourism and hospitality as key economic drivers in the region.

Expanding Regional and International Tourism Markets

The rise in hotel demand also reflects broader regional travel trends. With increased air traffic through Muscat International Airport, which handled 87.4% of Oman’s total passengers, Oman continues to strengthen its position as a preferred destination for international tourists and GCC travelers. Oman’s growing appeal as a tourism hub is due, in part, to its mix of untouched natural beauty, rich cultural heritage, and luxurious accommodations.

Whether travelers are drawn to Muscat’s historical landmarks, Salalah’s beaches, or Oman’s vast desert landscapes, the country offers a diverse array of experiences. The expanding hotel room inventory, coupled with targeted marketing and investment in sustainable tourism, will undoubtedly continue to shape Oman’s hospitality sector for the future.

Oman’s Hospitality Industry Poised for Continued Growth

Oman’s hospitality industry is on an impressive upward trajectory, with hotel revenues and occupancy rates rising steadily. The ongoing growth of luxury and 3-5 star hotels in Muscat and across the country, combined with government efforts to enhance tourism infrastructure, is setting the stage for a strong 2026. With its expanding hotel inventory and increased international visitation, Oman is well-positioned to remain a key player in Middle Eastern tourism.

For travelers, Oman offers a luxurious and culturally immersive experience that combines modern amenities with ancient traditions. As the nation continues to expand its tourism offerings, Oman’s hospitality sector will undoubtedly continue to attract a growing number of visitors seeking unique and memorable travel experiences.

This article was originally published in Travel Tour World.