hospitality industry Oman

Oman Hospitality Sector Records 22% Growth, Reaches OMR 297 Million in 2025

Muscat, 19 April 2026: Muscat: Oman’s tourism-driven hospitality industry reached a major milestone in 2025, with hotel revenues climbing to OMR 297.3 million ($772 million), reflecting a strong 22% year-on-year increase, according to a report by Cavendish Maxwell.

The strong performance underscores Oman’s rising prominence as a global tourism destination and highlights the sector’s critical contribution to the country’s economic diversification strategy.


Tourism Demand Fuels Growth Across the Sector

Oman’s hotels welcomed approximately 2.4 million guests in 2025, marking an 11% increase compared to the previous year. The surge in visitor numbers significantly boosted overall hotel performance across the country.

  • Average occupancy reached nearly 57%, up by 13.6%
  • Average room rates increased by 4.7% to around OMR 49 ($127)

These indicators point to a sustained recovery and growing demand from both domestic and international travelers. Improved global connectivity, strategic marketing campaigns, and diversified tourism offerings have all contributed to this upward trend.


Hotel Supply Expands to Support Rising Visitor Numbers

To accommodate increasing demand, Oman continues to expand its hospitality infrastructure. In 2025, approximately 900 new hotel rooms were added, bringing total capacity to around 36,800 rooms.

The development pipeline remains strong:

  • Around 2,400 additional rooms are expected to be delivered in 2026
  • A further 900 rooms are planned for 2027

This expansion reflects strong investor confidence and signals long-term optimism about Oman’s tourism potential. The growing supply also ensures that the country can cater to a broader range of travelers, from luxury seekers to mid-market segments.


Domestic Tourism Strengthens Market Stability

Domestic travel has emerged as a key pillar of growth for Oman’s hospitality industry. In 2025, Omani nationals accounted for over 36% of total hotel guests, compared to 33.8% in 2024.

The increasing preference for local travel has helped stabilize the sector during periods of global uncertainty. It has also encouraged regional tourism development, supporting businesses and communities across the country.

Government initiatives promoting internal travel and improved infrastructure have further strengthened this trend.


International Visitors Boost Global Appeal

Oman continues to attract a diverse international visitor base, reinforcing its position as a competitive tourism destination.

  • European visitors increased by 22%, making up nearly 28% of total hotel guests
  • Asian travelers accounted for 14.5%, highlighting growing interest from emerging markets

The country also remains a preferred destination for travelers from GCC nations. Its unique combination of cultural heritage, scenic landscapes, and premium hospitality offerings continues to resonate with global tourists seeking authentic experiences.


Aviation Sector Supports Tourism Growth

Oman’s aviation sector has played a crucial role in facilitating tourism growth. The country’s airports handled nearly 15 million passengers in 2025, reflecting a 2.8% increase year-on-year.

Muscat International Airport handled approximately 13.2 million passengers, accounting for the majority of traffic. Meanwhile, Salalah International Airport recorded nearly 1.7 million passengers, showing strong growth of almost 10%.

Enhanced air connectivity and expanded routes continue to improve accessibility and support the country’s tourism ambitions.


Strategic Stability and Investment Drive Long-Term Growth

Oman’s success in tourism is supported by its political stability, strategic geographic location, and continued investments in infrastructure. Government initiatives focused on cultural tourism, eco-tourism, and luxury travel have strengthened the country’s global positioning.

Despite regional geopolitical challenges, Oman has maintained a reputation as a safe, welcoming, and culturally rich destination for travelers.


Outlook: Strong Opportunities for the Travel Trade

With solid fundamentals and a growing global profile, Oman’s hospitality sector is well positioned for sustained growth in the coming years.

The market presents strong opportunities across key segments:

  • Luxury and experiential travel
  • Destination weddings and events
  • Cultural and eco-tourism

In addition, digital transformation and enhanced travel experiences are expected to further boost visitor engagement.

The record performance in 2025 signals a positive trajectory, positioning Oman as an emerging leader in the Middle East tourism landscape.


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