The Oman Vision 2040 development strategy identifies tourism as a key economic focus, with the government hoping to strengthen the sector through public and private investment. Over the past decade, the industry has experienced consistent growth and has recovered following the Covid-19 pandemic, with visitor arrivals almost back to 2019 levels. The government of Oman aims to develop the sector sustainably through the creation of more national parks, and put an emphasis on community development to stimulate local economies through small and medium enterprise (SME) participation. As Oman diversifies its economy beyond hydrocarbons, tourism is expected to play a increasingly key role.
Structure & Oversight
Several authorities participate in Oman’s tourism sector to promote both leisure and business travel, as well as drive trade. The Ministry of Heritage and Tourism (MoHT) is responsible for shaping and implementing national tourism legislation. The Oman Tourism Development Company (Omran) owns and develops most of Oman’s tourism infrastructure, including several hotels, as well as nature and heritage sites. It is also responsible for promoting the industry at home and abroad. Omran works closely with the Ministry of Commerce, Industry and Investment Promotion (MCIIP) to encourage greater private investment in the sector. Government-owned Oman Airports oversees Oman’s airports, managing airport planning in line with national development strategies. Oman’s ports are managed by Marafi, the port management arm of the government-owned logistics group Asyad, including the two main cruise ship ports, Port Sultan Qaboos and Port of Salalah.
Oman Vision 2040 highlights the importance of tourism as an economic driver. It outlines $51bn in investment to the sector by 2040, up to 90% of which is expected to come from the private sector. The MoHT plans to invest $5.9bn across 360 tourism projects. The development plan emphasises the importance of sustainable tourism and the creation of new tourist destinations beyond the capital of Muscat, which the government hopes to achieve through investment in hotels and resorts, as well as nature reserves, historical sites and cultural heritage.
Strategy
Under its Cultural Strategy 2021-40, the government outlines the aim of establishing Oman as a leading cultural destination with an emphasis on identity. The MoHT aims to attract private funding for 25 historical monuments by 2025, having signed 12 investment contracts as of late 2024, including the Bahla Fort development. There is a wide array of cultural offerings in Oman, with many investment opportunities in the development and promotion of potential tourist sites, which are expected to be achieved under the National Tourism Strategy (NTS) 2040 and the Cultural Strategy 2021-40.
The MoHT established the NTS 2040 in 2016 to support the practical implementation of Oman Vision 2040 across all levels of tourism. It will be carried out in three phases: preparation, from 2016 to 2020; growth, from 2021 to 2030; and stability, from 2031 to 2040. By 2040 the MoHT hopes to create over half a million jobs and increase the number of international and domestic tourists to 11.7m, from 2.6m in 2015. It aims to increase the contribution of the sector to national GDP from 2.6% in 2015 to between 6% and 10% by 2040 by developing 14 clusters of tourism infrastructure across the country.
The MoHT will provide training and education across the sector to support policy rollout and will assess implementation using a scorecard system. Sector development plans focus on the development of natural tourism sites including wildlife reserves, mountains, wadis, deserts and coasts, as well as community involvement in the preservation of cultural heritage aimed at boosting local economies. The MoHT introduced a new tourism law in 2023 that aligns with Vision 2040 and the NTS 2040. It aims to establish Oman as a regionally and globally competitive tourism destination, as well as develop the sector sustainably. It mainly focuses on improving tourism services and attracting higher levels of private investment to the sector.
Size & Performance
With a wide variety of natural spaces, beaches and business offerings, there is room for Oman’s tourism industry to grow in the coming decades. The development of a dedicated policy for the sector is expected to help achieve the development aims of Oman Vision 2040, supported by both public and private funding.
The number of tourists visiting Oman for both business and leisure has increased significantly over the last decade. There were 3.9m inbound visitors in 2023, compared to 2.9m in 2022 and 1.9m in 2013. Meanwhile, the number of outbound visitors increased from 4m in 2012 to 5.2m in 2022. The direct value added of tourism totalled OR1.1bn ($2.9bn) in 2022, while the contribution of the tourism sector to Oman’s GDP has remained steady over the last two decades, increasing marginally from 2.1% in 2012 to 2.4% in 2022 and 2.5% in 2023.
There has been a rapid rebound in tourism following the Covid-19 pandemic. The tourism sector’s contribution to GDP increased by almost 35% between 2022 and 2023 to OR2.8bn ($7.3bn). It is on target to surpass that in 2024 as arrival numbers and spending continue to rise. International visitors contributed OR1.1bn ($2.9bn) to the economy in 2023, an increase of 69%, while domestic spending totalled OR1.4bn ($3.6bn). Leisure spending contributed 64.1% of total visitor spending in 2022, compared to business at 35.9%.
Oman’s travel and tourism market is expected to grow at a compound annual growth rate of 5.5% between 2024 and 2028, to achieve $670m by 2028. This will be bolstered by investment in the hospitality segment, which is expected to achieve $230m in 2024. Investment in the tourism sector is forecast to total $7bn between 2021 and 2025.
Airport passenger traffic is expected to reach 50m by 2040 from 14.5m as of December 2024. The MoHT plans to build six new airports across Oman to increase the total number in the country to 13, which will support an estimated 50m in passenger traffic by 2040. The development is intended to encourage visitors to travel to destinations outside of Muscat in line with the aims of the NTS 2040. The share of accommodation in Muscat is expected to fall from 53% at present to 30.8% in 2040, as the MoHT and private companies invest in 14 clusters across the sultanate. Meanwhile, the share of hotels in Dhofar is expected to increase from 12.6% to 23.8%.
The MoHT plans to invest around $11.4bn in hospitality and real estate to support the development of new tourism regions across Oman. This will contribute to the construction of over 16,500 hotel rooms and 42,500 housing units in several areas, including Muscat, Dhofar, Al Sharqiyah South, Al Batinah South and Musandam. The MoHT is focusing on the development of integrated tourism complexes that offer a range of facilities, such as golf courses, harbours, restaurants, cafés and shops. Additionally, the extension of visa-free entry to 105 countries is expected to help boost both leisure and business tourism numbers. In May 2023 the GCC approved a visa that allows travellers to move freely across the Gulf bloc, in a scheme that mimics Europe’s Schengen visa. It is expected to launch in early 2025.
In 2023 the number of people in Oman engaged in tourism-related employment stood at around 142,300, equivalent to a 6.6% share of total jobs. The number of tourism jobs is expected to grow significantly over the next decade to reach 197,000 jobs – or a 7.6% share of total jobs by 2033 – according to a World Travel & Tourism Council forecast. The MoHT aims for there to be 535,574 direct and indirect jobs in tourism by 2040.
Visitor Numbers & Source Markets
Annual tourist arrivals are expected to increase by 7.4% between 2023 and 2027. The MoHT plans to expand several source markets including Russia, India and China. It has carried out several promotional campaigns aimed at the Russian market, as well as partnered with Russian travel firms and offered Russians a 30-day visa-free entry. The MoHT recorded a 100% increase in the number of Russian visitors in 2022, at over 100,000 arrivals.
In terms of inbound arrivals, in 2022 some 20% of visitors came from the UAE, 12% from India and 5% each from Germany, the UK and Bahrain, with the rest of the world accounting for 54%. Outbound departures consisted of 69% going to the UAE, 18% to Saudia Arabia, 3% to Qatar, 2% to India, 1% to Bahrain and 6% to the rest of the world. The development of Oman’s airports is outlined in the National Aviation Strategy 2040, which was extended from the target year of 2030 after the Covid-19 pandemic and aims to attract $3.6bn in investment for airport cities. The planned airports will be strategically located to attract more international traffic and enhance logistics and tourism in specific regions, as well as connect passengers with the industrial areas of Duqm, Salalah and Sohar, according to the Civil Aviation Authority.
Airports
Muscat International Airport (MCT) is the largest in Oman and receives the highest number of international visitors. In 2023 it handled 12.6m passengers, marking a 46.7% increase on 2022. Around 11.5m of these passengers were international, while 1.1m were domestic. There were 86,792 international flights and 8,533 domestic flights recorded at MCT in 2023, equating to a 43.2% and a 5.1% increase, respectively, from the previous year. The airport is served by Oman Air and SalamAir as well as several foreign airlines, including Air India, Air India Express, flydubai, IndiGo and Pakistan International Airlines. The completion of a new 580,000-sq-metre terminal in 2018 means that MCT has been expanded to accommodate up to 20m passengers a year. In June 2024 Oman Airports issued an expression of interest notice to redevelop an old terminal building at MCT into a multi-purpose facility with an aviation museum as part of the authority’s plan to encourage greater private sector participation in the aviation sector.
Oman Air is continuing to streamline its route network, which will allow the airline to transition to Boeing 787-9 and Boeing 737-8 models by mid-2026. In December 2024 the airline launched a new route to Rome, in line with the country’s push to expand access to tourism target markets. Additionally, in August 2023 Oman Air and SalamAir signed a memorandum of understanding aimed at enhancing cooperation and developing a joint commercial aviation strategy. As of late 2023 Oman Air managed around 50% of Oman’s aviation traffic.
Oman Airports operates four commercial airports in the sultanate – MCT, Salalah International Airport, Duqm Airport and Sohar Airport, as well as several Petroleum Development Oman airports. The authority aims for all future airport developments and expansion projects to be carried out sustainably in line with Oman Vision 2040 goals, having pledged to achieve net-zero emissions by 2050.
Hotel Infrastructure
There is growing interest in Oman’s hospitality segment in response to the government’s NTS 2040 and greater funding for tourist sites across the country. The hotel pipeline includes a range of hotels and resorts in new tourist destinations, as the MoHT focuses on sectoral expansion beyond the capital of Muscat. Greater private investment in lesser-known destinations is expected to encourage visitors to spend more time in Oman and boost local economies, improving regional infrastructure and supporting job creation.
The segment has seen growth in recent years, with an 18% increase in revenue in the three- to five-star hotels, reaching OR52.4m ($136.1m) in February 2024, from OR44.41m ($115.4m) in the same month the previous year. The number of guests increased by 18.2% in the same period, from 366,969 to 433,856. Meanwhile, hotel occupancy rose by around 11.2%.
As of 2022 there were 20,294 hotel employees in Oman, serving approximately 3.4m guests a year. Oman’s room occupancy rate was 34.9% in 2022, down from 45.8% in 2012 and below the Middle East average of 63.6%. By 2023, around 813 hotels were offering 32,821 rooms, a figure expected to reach 33,000 by the end of 2025. As part of the NTS 2040, the MoHT aims to increase the number of rooms to approximately 80,000 by the strategy’s target year, including 33,373 hotel rooms, 29,287 vacation home rooms and 17,262 integrated tourism complex rooms.
Omran plays a major role in the hotel segment, with 37% of the properties it manages located in Dhofar, 34% in Muscat, 11% in Al Sharqiyah and Al Wusta, 10% in Al Batinah, 6% in Musandam and 2% in Al Dakhiliyah. The group manages 24 hotels and resorts and 3800 hotel rooms in total. It also contributes heavily to the business tourism sector, having developed the Oman Convention and Exhibition Centre (OCEC) in Muscat for conferences and events.
In March 2024 Mövenpick opened its first hotel in Oman with the Mövenpick Hotel and Apartments Ghala in Muscat. The five-star property includes 282 rooms and suites and 58 hotel apartments, as well as a spa, a fitness centre and a rooftop infinity pool. For business visitors, the hotel includes four venues for up to 570 guests, including three meeting rooms and the Al Falaj Ballroom. Located in Ghala Heights, the hotel is close to MCT and the OCEC. Mövenpick’s parent organisation, Accor, operates four other properties in Oman, at a total of 878 keys, with another five properties in the pipeline for 2026.
Minor Hotels plans to expand its Anantara brand in Oman with a new resort on the Bandar Al Khairan coast, around 45 minutes from Muscat. The property, set to open in 2026, will boast 121 rooms, including 51 guest rooms, 46 chalets and 24 villas. There are two existing Anantara resorts in Oman – Al Baleed Resort Salalah and Anantara Al Jabal Al Akhdar Resort – and several others across the region.
Tourism Clusters
As part of Oman Vision 2040 and the NTS 2040, the MoHT plans to develop several new tourist clusters across the country to encourage visitors to travel beyond Muscat. These destinations include regions with beaches, nature reserves, historical sites and other offerings. The MoHT plans to invest public funds in the development of these sites and attract private investment to develop hotel infrastructure as well as leisure facilities.
In February 2024 the MoHT announced plans for a $2.4bn mountain destination in the Jabal Al Akhdar mountains in the north-east of Oman. Once developed, the destination is expected to attract over 8000 residents, as well as an average of 2350 overnight visitors and 2000 daily visitors. It will offer tourist infrastructure including a high-altitude sports training centre, amphitheatres, a museum, and parks and public spaces. Located at an altitude of 2400 metres, the area is temperate all year round, with an average temperature of 22°C. The destination, developed by Canadian engineering, procurement and construction company AtkinsRéalis, will include 2527 residential homes, 2000 hotel rooms and a health and wellness village called The Vessel. The developer plans to work with local communities and focus on environmental sustainability, aiming to achieve net-zero carbon operations by running it entirely on renewable energy. The project aims to preserve the ecology of the nearby National Scenic Reserve through initiatives such as making the resort 85% pedestrianised and minimising light pollution. It will also include a biodiversity centre for local and international research and development.
In May 2024 French travel and tourism operator Club Med selected the Musandam Governorate in northern Oman for its first development in the Middle East. As part of a project to construct six resorts across the region, Club Med will partner with Royal Court Affairs and Omran to develop the Musandam project, with an investment of over $100m. The resort will span 250,000 sq metres, including 600 metres of private beach. There is a focus on sustainability, in line with Oman Vision 2040, and the project is expected to create some 400 direct and 800 indirect jobs, with construction to start in early 2026 and operations to begin in 2028.
Business Tourism
As part of its tourism strategy, Oman aims to expand its tourism offerings and develop several new destinations across the country. Alongside expanded offerings, it will encourage community participation to share its cultural heritage with visitors. Additionally, it hopes to attract more business tourists, following in the footsteps of neighbouring GCC countries such as the UAE and Qatar.
The OCEC, which opened in October 2016, offers 100,000 sq metres of space for conferences and events in Muscat, supporting Oman’s growing business tourism segment. It consists of a 3200-seat convention hall, 25,000-sq-metres of exhibition space, a 2000-sq-metre ballroom, a 1000-sq-metre junior ballroom, an 800-seat food court and several meeting rooms. In 2023 it attracted over 1.2m visitors, hosting 215 meetings, incentives, conferences and exhibitions (MICE) events, including 10 international events, 17 graduation ceremonies, 28 exhibitions and 185 institutional events. In 2024 it hosted 14 major regional and international events, contributing substantially to the local economy. The 18th Forum of the Gulf Petrochemicals and Chemicals Association held in December contributed an estimated $33m, while the General Arab Insurance Federation Conference held in November generated some $9m. The OCEC is working with Oman Airports and other stakeholders to promote MICE tourism in Oman. It is developing the segment in line with the aims of Oman Vision 2040, aiming to invest in digitalisation and sustainability, with plans to launch a solar project.
Ecotourism
The NTS 2040 emphasises the importance of sustainable tourism, which is being reflected in several projects. The MoHT is working with the Environment Authority to establish nine new nature reserves to boost ecotourism in Oman. As of April 2024 there were 30 nature reserves across the country, which attracted 46,934 visitors in the first nine months of 2023. As well as preserving Oman’s biodiversity, the MoHT expects the parks to help establish Oman as an ecotourism destination, thereby contributing to the national economy.
The Wildlife Rehabilitation and Reproduction Centre in Barka is home to 2746 wild animals and birds. The Arabian Oryx reintroduction project in the Al Wusta Wildlife Reserve has focused on reintroducing the animal to its natural environment, a project ongoing since the 1970s. The reserve covers 2824 sq km and is now home to around 900 Arabian Oryx, 1140 sand gazelle and 140 Arabian gazelle.
Alongside its ecotourism expansion, the MoHT is developing Oman’s adventure tourism offerings, with over 40 projects in the pipeline, including ziplines, cable cars and walking trails. The MoHT plans to develop several of its mountain ranges to make them more accessible to visitors, including Wadi Bani Khalid and Wadi Al Arbeieen, which are known for their natural springs and waterfalls. Many of Oman’s caves have been developed to make them suitable for visitors and the MoHT is expected to approve select companies for licences to run caving expeditions. Furthermore, the MoHT is targeting private investment to improve Oman’s cruise tourism. The ministry aims to surpass its pre-pandemic peak of 280,000 sea and river cruise tourists. The MoHT is also collaborating with the Ministry of Transport, Communications and IT to identify sites along the coast for investment in yacht tourism.
Additionally, Oman’s medical tourism segment has potential for greater expansion. The sultanate offers highly developed health care resources, particularly in cardiology, and advanced treatments that are not widely available elsewhere. In addition, the cost of most medical procedures is lower than in many Western countries. For example, the cost of a knee replacement surgery is between 50% and 70% lower than in the US, at between $5,000 and $7,000. Additionally, acquiring a visa for a medical visit is straightforward and can be attained with a confirmed appointment with an accredited medical facility and proof of funds to cover medical costs.
Marketing
Omran is the authority responsible for Oman’s tourism promotion. In November 2024 it announced plans to invest $5bn in strategic tourism projects between 2024 and 2028, focused on spurring economic growth and diversification. The group has attracted almost $2bn to Oman’s tourism market through promotional activities, such as the launch of its online platform Visit Oman. The website allows visitors to book trips, connect with travel trade partners and local tourism providers, and learn more about Oman’s tourist destinations.
Omran is promoting several tourism segments to attract new visitor markets to Oman, including water and sports tourism and cultural tourism. Projects include the Marina Bandar Al Rowdha on the Gulf of Oman, which offers water sports and aquatic activities, and Oman Sail, which promotes Oman as a tourist destination at international sporting events. Some of Omran’s historical and cultural sites include Nizwa Fort, Al Hoota Cave, the Harat Al Bilad archaeological site and Majlis Al Jin Cave, which boasts one of the largest cave chambers in the world.
Omran has focused on enhancing tourism business at the local level by working with SMEs across the country. The agency aims to involve local communities in tourist activities to help people in rural regions develop skills and earn revenue. Additionally, in May 2024 Omran and the Ras Al Khaimah Tourism Development Authority partnered on a unified summer travel campaign entitled See Double, aimed at encouraging tourists to visit both Ras Al Khaimah and Musandam in a single trip. This is the first joint promotion from the two tourism authorities and could encourage future collaboration.
Outlook
Oman’s tourism sector has grown to become a major contributor to national GDP in recent years, with plans for much greater expansion over the coming decades. The NTS 2040 focuses on promoting economic diversification through tourism, supported by the development of new sustainable destinations outside of Muscat and through expanded public and private investment. Both leisure and business tourism have grown in recent years, especially as the country targets new visitor source countries suggesting room for growth through promotional activities. The construction of new hotels and resorts across the country will be supported by investment in historical sites, adventure tourism destinations and nature reserves aimed at attracting new tourist segments and encouraging visitors to stay longer.
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