Oman's hospitality sector is entering a new era, with plans to add 9,600 new hotel rooms by 2030, according to a recent market performance report by property consultant Cavendish Maxwell. This expansion will boost the country's existing inventory of 36,000 rooms by over 25 per cent, with 2,600 keys scheduled for completion by the end of 2025.
The growth underscores a significant uplift in performance. The report reveals that 3-5 star hotel revenues rose to OMR141.2 million ($367 million) in the first half of 2025, marking an 18.2 per cent increase year-on-year. Room revenues alone contributed OMR83.7 million ($217.5 million), up nearly 22 per cent.
This strong performance is generating substantial employment, with the hospitality sector workforce growing by 4.8 per cent to 10,800 employees. The data confirms that the tourism sector is set to overtake transport and logistics to become the second most important industry in Oman after hydrocarbons by 2030.
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, stated: “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.”
Hotel occupancy climbed to an average of nearly 55 per cent, a notable 14 per cent increase on the first half of 2024. The average room rate stood at OMR47.7 ($124), a modest rise suggesting hotels benefited from higher volumes rather than significant rate increases.
Visitor volume in 3-5 star hotels amounted to 1.1 million guests, up 9.2 per cent from 2024.
Source markets showed Omani nationals represented the largest share of hotel guests (33.6 per cent), followed closely by Europeans (31.1 per cent) and Asians (14.3 per cent). GCC visitors accounted for 7.3 per cent.
Al Zadjali stressed that to keep pace with growth - with tourism expected to contribute 5 per cent to GDP by 2030 - Oman needs to continue to rejuvenate the hotel sector, build new hotels and resorts, and diversify tourism beyond Muscat.
Oman is preparing for a future of expanded connectivity. Six new regional airports are planned by 2030, including locations like Al Jabal Akhdar, Masirah Island, and Sohar, which will bring the total number of airports in the country to 13. Muscat International Airport remains the main gateway, handling over 90 per cent of air travellers in H1 2025.
The Ministry of Heritage and Tourism is actively positioning Oman as a year-round, global destination, launching promotional campaigns in key international markets and planning new tourism representative offices in strategic source markets like Russia, Spain, Latin America, and China.
Major expansion projects are underway in key regions. In Muscat, The new Oman Botanic Garden is scheduled for handover by the end of this year, and the Muttrah Cable Car is set to become operational in 2026. Salalah is seeing development plans including Boulevard Raza, featuring the Salalah Eye. Plans for Jabal Akhdar include a major new, mixed-use mountain destination featuring 2,500 homes and 2,000 hotel rooms, alongside a health and wellness village at an altitude of 2,400 metres.
The data underscores the robustness of Oman's tourism sector, driven by a national strategy to diversify its economy and enhance its appeal to both domestic and international travellers.
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