Oman plans to open 9,600 new hotel rooms by 2030, with 2,600 due for completion by the end of 2025, according to real estate advisory group Cavendish Maxwell. The expansion will increase the country’s existing inventory of 36,000 rooms by more than 25 per cent.
Revenue from 3-5 star hotels reached OMR141.2 million (US$367 million) in the first half of 2025, up 18.2 per cent compared with the same period last year, the company’s latest Oman Hospitality Market Performance analysis shows.
Room revenues contributed OMR83.7 million (US$217.5 million), rising by nearly 22 per cent.
Oman hospitality sector creates 500 new jobs as hotel occupancy hits 55%
The sector’s performance has driven employment growth of 4.8 per cent, with 10,800 people now working in the industry. Hotels in the 3-5 star category welcomed 1.1 million guests between January and June, an increase of 9.2 per cent from 2024.
“Oman’s hospitality sector is entering a new era, driven by population growth, evolving travel patterns and strategic government investment. H1 2025 recorded impressive increases in visitors, hotel bookings, revenues, room rates and employment, and we expect this trend to continue in the second half of the year and beyond,” Khalil Al Zadjali, Head of Oman at Cavendish Maxwell said.
Oman’s population grew by 4.5 per cent last year and 5 per cent in 2023, with similar increases predicted through the decade, Al Zadjali explained, adding that domestic travel has risen in line with population growth, with Omanis taking longer trips and spending more per visit.
“While Gulf visitors still account for more than 25 per cent of arrivals into the country, the number of visitors from further afield, including Europe, India and China, is increasing. With tourism expected to contribute 5 per cent to GDP by 2030 – and 10 per cent by 2040 – the sector is set to overtake transport and logistics to become the second most important industry in Oman after hydrocarbons. To keep pace, Oman needs to continue to rejuvenate the hotel sector, build new hotels and resorts, and diversify tourism beyond Muscat, creating significant opportunities for investment, development and construction across the country,” he added.
Hotel occupancy reached nearly 55 per cent in the first half of 2025, up 14 per cent on the same period in 2024.
January and April recorded the highest levels at 65 per cent. The increase was driven by a rise in domestic and international visitors, reinforced by Government initiatives to position Oman as a year-round, global destination.
The average room rate stood at OMR47.7 (US$124) in the first half, a slight increase on the same period in 2024. The growth suggests that, although occupancy and guest numbers grew, pricing power remained stable, with hotels benefiting from higher volumes rather than rate increases.
Omani nationals represented the largest share of hotel guests in the first half, accounting for nearly 370,000 (33.6 per cent) of all check-ins at 3-5 star hotels.
Europeans were in second place, with more than 344,000 guests (31.1 per cent), followed by Asians, who accounted for 157,000 (14.3 per cent).
Travellers from the GCC made up 7.3 per cent of guests, while other Arab countries accounted for 4.2 per cent. The Americas contributed 3.4 per cent, Oceania 2.2 per cent and Africa 0.7 per cent. The largest source market growth was among travellers from Oceania.
Domestic travellers accounted for over a third of hotel guests, followed by Europeans, Asians and GCC visitors.
More than 90 per cent of air travellers to Oman touched down at Muscat International Airport in the first half. Salalah International welcomed 9.5 per cent of travellers, and is likely to see a growth in traffic during the upcoming Khareef season, which transforms surrounding mountains into lush, cool landscapes. Duqm Airport and Sohar International handled 0.4 per cent between them.
Airport passenger volumes are projected to reach 50 million by 2040. Six new regional airports are planned by 2030 to accommodate the growth in visitors, boost connectivity and strengthen the hospitality and tourism sector. Locations include Al Jabal Akhdar, Masirah Island and Sohar, and will bring the total number of airports in the country to 13.
Oman’s Ministry of Heritage and Tourism launched promotional campaigns in key international markets earlier this year to position the country as a global destination. New tourism representative offices are planned in source markets including Russia, Spain, Latin America, China and other parts of Asia. The ministry aims to collaborate with 80 international tourism companies to raise awareness of Oman’s tourism offerings.
Muscat, Salalah and Jabal Akhdar are all set to undergo tourism expansion and development to enhance Oman’s appeal to domestic and international leisure and business travellers.
In Muscat, the new Oman Botanic Garden is scheduled for handover at the end of this year, while the Muttrah Cable Car in the old town is set to become operational in 2026.
In Salalah, the upcoming Boulevard Raza, with the Salalah Eye as its centrepiece, will offer a range of leisure and entertainment attractions.
Jabal Akhdar’s offering is reaching new heights, with plans for a mixed-use mountain destination, featuring 2,500 homes, 2,000 hotel rooms and a health and wellness village, at an altitude of 2,400 metres. The Jabal Akhdar Park opened earlier this year.
