Muscat – Oman’s hospitality sector is set for a major expansion with 9,600 new hotel rooms expected to open by 2030, according to a report by real estate advisory firm Cavendish Maxwell. Around 2,600 of these rooms are scheduled for completion by the end of 2025, increasing the sultanate’s current hotel capacity of 36,000 rooms by 25%.

The firm’s latest Oman Hospitality Market Performance report shows that revenues from three- to five-star hotels rose to RO141.2mn in the first half of 2025, up 18.2% from the same period last year. Room revenues increased by nearly 22% to RO83.7mn, supported by higher visitor numbers and stronger domestic demand.

Employment in the sector grew 4.8% to 10,800 workers, reflecting its expanding contribution to the national economy. Between January and June, three- to five-star hotels across Oman hosted 1.1mn guests, an increase of 9.2% year-on-year.

Khalil al Zadjali, Head of Cavendish Maxwell’s Oman office, said the sector is entering a new phase driven by population growth, evolving travel trends and continued government investment. “The first half of this year saw significant increases in visitor arrivals, hotel bookings, revenues, room rates and employment. We expect this positive trend to continue in the coming months and beyond,” he said.

Oman’s population grew 4.5% in 2024 and 5% in 2023, with similar growth rates expected through the decade, he added.

Domestic travel has increased in line with population growth, as Omanis take longer trips and spend more per visit. While Gulf visitors still account for over a quarter of arrivals, numbers from Europe, India and China continue to rise.

Tourism is projected to contribute 5% to Oman’s GDP by 2030 and 10% by 2040, making it the second-largest sector after hydrocarbons. “To keep pace, Oman must continue to rejuvenate the hotel sector, develop new resorts and expand tourism beyond Muscat. This will create major opportunities for investment and construction across the country,” Zadjali said.

Hotel occupancy averaged nearly 55% in the first half of 2025, a 14% increase from the same period last year, with January and April recording the highest levels at about 65%. The average room rate rose modestly to RO47.7, indicating that growth was driven primarily by higher occupancy rather than price increases.

Omani nationals made up about one-third of all hotel guests in the first six months of 2025, followed by visitors from Europe, Asia and the GCC. The strongest growth was seen among travellers from Oceania.

More than 90% of international visitors arrived through Muscat International Airport, which remains the country’s main entry point. Salalah International Airport handled 9.5% of arrivals, while Duqm and Suhar airports accounted for less than 1%.

To support future tourism growth, six new regional airports are planned by 2030 in locations including Jabal Akhdar and Masirah Island, bringing the total number of airports in Oman to 13. Passenger traffic is expected to reach 50mn by 2040.

Key highlights

         •        9,600 new hotel rooms by 2030

         •        2,600 rooms ready by end of 2025

         •        Hotel revenues up 18% to RO141.2mn

         •        10,800 people employed in hospitality

         •        1.1mn hotel guests in first half of 2025

         •        Occupancy at 55%, up 14% from 2024