Oman to Add 9,600 Hotel Rooms by 2030 as Tourism Sector Booms

Tourism Growth Fuels Hotel Boom Across Oman

Oman is on track to add 9,600 new hotel rooms by 2030, boosting its current capacity by over 25%, according to the latest Oman Hospitality Market Performance Report by real estate consultancy Cavendish Maxwell.

Of these, 2,600 rooms are set to be completed by the end of 2025, supporting rising demand driven by strong population growth, increased domestic travel, and international visitor inflows.

Surging Revenues and Hotel Occupancy

Revenue from 3-5 star hotels reached OMR141.2 million (US$367 million) in H1 2025, marking an 18.2% increase year-on-year. Room revenue alone surged nearly 22%, hitting OMR83.7 million (US$217.5 million).

Hotel occupancy rose to 55%, up 14% from H1 2024, with peak months in January and April reaching 65%. Notably, this growth came without significant price hikes, as the average room rate increased only slightly to OMR47.7 (US$124).

Hospitality Employment and Domestic Demand on the Rise

The hospitality sector now employs 10,800 people, reflecting 4.8% employment growth, and welcomed 1.1 million guests at 3-5 star hotels during the first half of the year—a 9.2% year-on-year increase.

Omani nationals accounted for 33.6% of all guests, followed by Europeans (31.1%) and Asians (14.3%). Visitors from the Gulf Cooperation Council (GCC) made up 7.3%, while the largest growth came from Oceania.

Strategic Investment and Diversification Beyond Muscat

Head of Oman at Cavendish Maxwell, Khalil Al Zadjali, emphasized the transformation underway:

“Oman’s hospitality sector is entering a new era, driven by population growth, evolving travel patterns, and strategic government investment. We expect continued momentum into the second half of the year and beyond.”

To support projected growth and tourism's target GDP contribution of 5% by 2030 (10% by 2040), Oman is investing in new hotels, regional airports, and a more diversified tourism offering beyond Muscat.

Airport Expansion and Infrastructure Growth

Passenger volumes at Oman’s airports are expected to reach 50 million by 2040. In preparation, the country plans to build six new regional airports by 2030, including locations such as Al Jabal Akhdar, Masirah Island, and Sohar, bringing the total number of airports to 13.

Currently, over 90% of international air traffic lands at Muscat International Airport, followed by Salalah International (9.5%), which is expected to see a boost during the Khareef season.

Major Projects in Muscat, Salalah, and Jabal Akhdar

Several destination development projects are set to elevate Oman’s tourism appeal:

• Muscat:

  • Oman Botanic Garden to be handed over by end of 2025

  • Muttrah Cable Car operational in 2026

• Salalah:

  • Boulevard Raza, anchored by the Salalah Eye, a new leisure and entertainment district

• Jabal Akhdar:

  • A high-altitude mixed-use destination with 2,000 hotel rooms, 2,500 homes, and a wellness village

  • The Jabal Akhdar Park opened earlier this year

Global Promotion and Market Expansion

Oman's Ministry of Heritage and Tourism is scaling up its international presence with promotional campaigns in key markets like Russia, Spain, China, and Latin America. Plans include opening new tourism representative offices and forming partnerships with 80 international tourism companies to increase global visibility.