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Oman hotel revenues fall 12.2% as visitor arrivals hold steady

2 Aug 2026 Oman tourism H1 2026 hotel revenues fall By OUR CORRESPONDENT

Muscat – Oman’s tourism and hospitality sector recorded a mixed performance in the first half of 2026, with international visitor arrivals remaining stable while hotel guests, overnight stays and revenues declined, according to preliminary official data.

The sultanate received 1.80mn visitors till the end of June, unchanged from the corresponding period of 2025. However, arrivals during June alone fell 16.4% to 223,253, from 266,969 a year earlier.

The UAE remained Oman’s largest source market, accounting for 491,503 visitors, broadly unchanged year on year. Indian arrivals rose to 382,015 from 304,394, while Chinese visitor numbers increased to 48,123 from 34,043. German arrivals edged up to 68,771, while the number of Yemeni visitors declined to 48,813.

Despite steady overall arrivals, activity at three- to five-star hotels weakened during the six-month period. Guest numbers fell 13% to 992,009, while guest nights declined 13.3% to 1.52mn.

Total hotel revenues dropped 12.2% to RO124.2mn, compared with RO141.5mn a year earlier. Room revenue decreased 11.5% to RO74mn, while other income fell 13.3% to RO50.2mn. Average occupancy across the category stood at 46.3%.

June occupancy varied sharply between governorates. North Batinah recorded the highest rate at 65.9%, followed by Dhahirah at 47%, Al Wusta at 42.8%, South Batinah at 40.5% and Muscat at 40.3%. Dhofar’s rate stood at 18.6%, while Musandam recorded 13.5%.

Employment in three- to five-star hotels declined 2.7% to 10,496. However, the number of Omani employees rose 3.4% to 3,661, while expatriate staffing fell 5.6% to 6,835.

Air traffic indicators also reflected weaker international activity. Incoming international flights fell 11.1% to 18,899, carrying 2.56mn passengers, down 12%. Domestic arrivals performed better, with flights increasing 3.8% and passenger numbers rising 0.8%.

The figures indicate that while Oman retained its overall visitor volume and recorded growth from several Asian markets, the hospitality sector faced pressure from lower spending, fewer overnight stays and reduced international air traffic during the first half.

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