Oman to Add 9,600 Hotel Rooms as Tourism Sector Grows

Oman is preparing for significant expansion in its hospitality sector, with plans to add 9,600 new hotel rooms by 2030. This growth will increase the current inventory of approximately 36,000 keys by over 25%, marking a new era for the country’s tourism and hotel industry.

Revenue Growth in Hotels

According to the latest Cavendish Maxwell report, revenues from 3- to 5-star hotels reached OMR 141.2 million in the first half of 2025. This represents an 18% increase compared to the same period in 2024. The growing revenue has also boosted employment in the sector, which now supports nearly 10,800 jobs, up almost 5% year-over-year.

Hotel Occupancy and Room Rates

Hotel occupancy in Oman reached nearly 55%, a rise of more than 14% from the first half of 2024. The average room rate held steady at OMR 47.7 ($124), showing a stable and growing market. Domestic travelers accounted for over one-third of hotel guests, followed by visitors from Europe, Asia, and the GCC.

Population Growth Driving Tourism

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, noted that population growth and changing travel patterns are driving the sector. Oman saw population growth of 4.55% in 2024 and 5% in 2023, with further increases expected throughout the decade. Domestic travel is increasing in both scale and spending, contributing to the sector’s steady rise.

International Visitor Trends

While Gulf visitors remain a significant portion of tourists, arrivals from Europe, India, and China are steadily increasing. This diverse mix of travelers is helping Oman strengthen its international tourism presence and build a more resilient hospitality market.

Expanding Tourism Beyond Muscat

The report recommends accelerating hotel and resort development outside Muscat to diversify tourism across Oman’s regions. By expanding offerings to coastal, desert, and cultural destinations, Oman aims to attract more international visitors and encourage domestic travel, supporting broader economic growth.

Tourism Contribution to Economy

Tourism is expected to contribute 5% to Oman’s GDP by 2030 and 10% by 2040. As the sector grows, it is projected to surpass transport and logistics to become the country’s second most important industry after hydrocarbons. Strategic government investments and private sector participation are key to achieving these targets.

Positive Outlook for Hospitality

With increasing bookings, rising revenues, and stable room rates, Oman’s hospitality sector is positioned for sustained growth. Investments in infrastructure, regional diversification, and promotion of both domestic and international tourism will continue to drive the industry forward, supporting jobs and long-term economic development.