Oman is set to open 9,600 new hotel rooms between now and 2030, with 2,600 scheduled for completion by the end of 2025, says real estate advisory group and property consultant, Cavendish Maxwell. The upcoming keys will boost Oman’s existing inventory of 36,000 rooms by more than 25%, the company said.
Cavendish Maxwell’s latest Oman Hospitality Market Performance insight and analysis reveals that 3-5 star hotel revenues rose to OMR 141.2 million ($367 million) in the first half of 2025, an increase of 18.2% on H1 last year. Room revenues contributed OMR 83.7 million ($217.5 million) – up nearly 22%.
The strong hotel performance has led to 4.8% growth in hospitality sector employment in the country, with 10,800 people now working in the industry. 3-5 star hotels welcomed 1.1 million guests between January and June, up 9.2% from 2024.
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said: “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.
“Oman’s population grew by 4.5% last year and 5% in 2023, with similar increases predicted through the decade. 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% 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% to GDP by 2030 – and 10% 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,” added Al Zadjali.
CAVENDISH MAXWELL’S RESEARCH ALSO SHOWS THAT IN H1 2025:
Oman hotel occupancy reached almost 55% - up more than 14% on H1 2024
The average room rate was OMR47.7 ($124)
Domestic travellers accounted for over a third of hotel guests, followed Europeans, Asians and GCC visitors
Muscat Airport handled 90% of travellers to Oman. Salalah handled 9.5%.
OCCUPANCY UP
Hotel occupancy climbed to an average of nearly 55% in H1 – up 14% on last year – with January and April commanding the highest levels of 65%. The rise was driven by an increase in domestic and international visitors, reinforced by Government initiatives to position Oman as a year-round, global destination.
MODEST RISE IN ROOM RATES
Average room rates in H1 stood at OMR47.7 – a slight increase on the same period in 2024. This modest growth suggests that, although occupancy and guest numbers grew, pricing power remained stable, with hotels benefiting from higher volumes rather than significant rate increases.
HOTEL GUEST SOURCE MARKETS
Omani nationals represented the biggest share of hotel guests in H1, accounting for nearly 370,000 (33.6%) of all check-ins at 3-5 star hotels. Europeans were in second place, with more than 344,000 guests (31.1%) followed by Asians, who accounted for 157,000 (14.3%). Next were travellers from the GCC (7.3%), other Arab countries (4.2%), The Americas (3.4%) Oceania (2.2%) and Africa (0.7%). The largest source market growth was among travellers from Oceania.
AIRPORT ANALYSIS
More than 90% of air travellers to Oman touched down at Muscat International Airport, which remains Oman’s main gateway, in H1. Salalah International welcomed 9.5% 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% between them.
With airport passenger volumes are projected to reach 50 million by 2040, six new regional airports planned by 2030 to accommodate the growth in visitors, boost connectivity and further 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.
WHAT’S NEW?
Earlier this year, Oman’s Ministry of Heritage and Tourism launched promotional campaigns in key international markets to position the country as leading global destination, and new tourism representative offices are planned in strategic source markets like Russia, Spain, Latin America, China and other parts of Asia. It’s also aiming to collaborate with 80 international tourism companies to raise awareness of Oman’s diverse tourism offerings.
Muscat, Salalh and Jabal Akhdar are all set to undergo significant 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 historic old town is set to become operational in 2026. In Salalah – already a year-round destination – the upcoming Boulevard Raza, with the Salalah Eye as its centrepiece, will offer a wide range of leisure and entertainment attraction. Jabal Akdhar’s offering is reaching new heights, with plans for major new, 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 Akdhar Park opened earlier this year. -TradeArabia News Service