Oman announces plans to add 9,600 new hotel rooms by 2030, enhancing tourism growth

OMAN – Oman has announced plans to add 9,600 new hotel rooms by 2030, increasing its current inventory of 36,000 rooms by more than 25%, according to real estate advisory firm Cavendish Maxwell.

Of these, 2,600 rooms are scheduled for completion by the end of 2025, signaling strong momentum in the Sultanate’s hospitality expansion.

The surge in supply follows robust performance in the first half of 2025, when revenues for 3- to 5-star hotels reached OMR141.2 million (US$367 million), an 18.2% increase year-on-year.

Room revenues alone rose nearly 22% to OMR83.7 million (US$217.5 million), driven by higher occupancy and guest volumes.

Hospitality sector employment grew by 4.8%, now supporting 10,800 jobs. Between January and June, 3- to 5-star hotels welcomed 1.1 million guests, a 9.2% rise from the same period in 2024.

Occupancy averaged nearly 55%, up 14% from 2024, with January and April recording peaks of 65%.

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, stated that the sector is entering a new era fueled by population growth, evolving travel patterns, and strategic government investment.

Oman’s population grew 4.5% in 2024 and 5% in 2023, with similar increases expected through the decade. Domestic travel is rising, with Omani nationals taking longer trips and spending more per visit.

While Gulf visitors still account for over 25% of arrivals, international tourism from Europe, India, and China is expanding.

Muscat Airport handled 90% of travelers, with Salalah receiving 9.5%. Omani nationals were the largest guest segment (33.6%), followed by Europeans (31.1%) and Asians (14.3%).

Recent investments highlight strong confidence in Oman’s tourism potential. Major developments include the Alila Jabal Akhdar expansion, the upcoming Ritz-Carlton in Muscat, and new eco-resorts in the Dhofar region.

International brands such as Marriott, Hilton, and Accor are accelerating their presence, with over 35 new hotels and resorts planned by 2030.

Approximately 54% of new rooms will be in the upscale, upper-upscale, or luxury segments, reflecting a strategic shift toward premium tourism.

Tourism is projected to contribute 5% to GDP by 2030 and 10% by 2040, positioning it to surpass transport and logistics as Oman’s second-largest industry after hydrocarbons.

To sustain growth, the country must diversify tourism beyond Muscat and accelerate hotel development across regions.

This expansion presents significant investment, construction, and development opportunities, aligning with Oman Vision 2040’s goal of a diversified, non-oil economy.

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