Muscat – Oman’s travel and tourism sector is projected to grow more than twice as fast as the overall economy in the next decade, with its contribution to the sultanate’s economy forecast to rise from RO3bn in 2025 to RO4.6bn by 2036, according to the World Travel & Tourism Council (WTTC).

WTTC’s 2026 Economic Impact Research forecasts the sultanate’s travel and tourism sector to expand at a compound annual growth rate (CAGR) of 5.3% between 2026 and 2036. The projected CAGR of its overall economy is 2.1% in the same period. As a result, travel and tourism’s share of the economy is expected to increase from 7.2% in 2025 to 8.7% by 2036.

The sector contributed RO3bn to Oman’s GDP in 2025, marking an annual growth of 5.5% and putting its economic contribution 25.7% above the 2019 level, according to WTTC data.

Although the sector’s contribution is forecast to decline to RO2.8bn in 2026, down 9.6% from 2025, it is still expected to remain 13.6% above its 2019 contribution. The main reason for the decline this year is the conflict in the Middle East, which has affected travel and tourism industries across the Gulf region.

International visitors to drive growth

International visitor spending is expected to be a major driver of the travel and tourism sector’s expansion in the sultanate. WTTC forecasts international visitor spending in Oman to rise to RO2.5bn by 2036, representing a CAGR of 7.2% between 2026 and 2036.

Domestic visitor spending is projected to reach RO1.5bn by 2036, growing at a more modest CAGR of 1.6% in the same period.

In 2025, international visitors accounted for 53.8% of the total visitor spending, while domestic visitors accounted for 46.2%. International visitor spending reached RO1.5bn during the year, up 4.2% year-on-year and 12.2% above the 2019 level. Domestic visitor spending stood at RO1.3bn in 2025, up 3.9% year-on-year and 58.1% above 2019.

Of the total visitor spending in 2025, the leisure category accounted for 66%, while the business category accounted for 34%.

The UAE was Oman’s largest source of international visitors in 2025, accounting for 16% of the total, followed by India at 12%, the UK at 8%, Germany at 6% and Bahrain at 4%.

Tourism to create 62,800 jobs

The projected expansion of the travel and tourism sector is also expected to support substantial employment growth in the sultanate in the next decade.

The sector continues to be a significant source of employment for Omani citizens. Travel and tourism supported 195,800 jobs in Oman in 2025, equivalent to 7.2% of the total employment, up 3.5% year-on-year and 23.6% above 2019, WTTC data showed.

The council expects employment in the sector to rise to 255,400 jobs by 2036, creating 62,800 additional jobs in the ten-year period. The sector’s share of the total employment is projected to increase from 7% in 2026 to 7.7% by 2036.

WTTC’s research shows that travel and tourism’s economic importance extends beyond direct GDP and employment. The sector generated RO190mn in tax contributions in 2024, equivalent to 0.9% of government revenues.