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Oman is set to add 9,600 new hotel rooms by 2030, with 2,600 scheduled for completion by the end of 2025, according to leading real estate advisory and property consultancy Cavendish Maxwell. The new supply will expand Oman’s current inventory of 36,000 rooms by more than 25 per cent, the firm said.
Cavendish Maxwell’s latest Oman Hospitality Market Performance report revealed that revenues for 3–5-star hotels climbed to OMR141.2m ($367m) in the first half of 2025—an 18.2 per cent increase compared to the same period last year. Room revenues rose nearly 22 per cent to OMR83.7m ($217.5m).
This strong performance has driven a 4.8 per cent rise in hospitality employment, with 10,800 people now working in the sector. Between January and June, 3–5-star hotels welcomed 1.1 million guests, up 9.2 per cent year-on-year.
Growing momentum in hospitality
Khalil Al Zadjali, head of Oman at Cavendish Maxwell, said: “Oman’s hospitality sector is entering a new era, driven by population growth, evolving travel patterns and strategic Government investment. H1 2025 recorded impressive increases in visitors, hotel bookings, revenues, room rates and employment, and we expect this trend to continue in the second half of the year, and beyond.
“Oman’s population grew by 4.5 per cent last year and 5 per cent in 2023, with similar increases predicted through the decade. Domestic travel has risen in line with population growth, with Omanis taking longer trips and spending more per visit. While Gulf visitors still account for more than 25 per cent of arrivals into the country, the number of visitors from further afield, including Europe, India and China, is increasing. With tourism expected to contribute 5 per cent to GDP by 2030 – and 10 per cent by 2040 – the sector is set to overtake transport and logistics to become the second most important industry in Oman after hydrocarbons.
“To keep pace, Oman needs to continue to rejuvenate the hotel sector, build new hotels and resorts, and diversify tourism beyond Muscat, creating significant opportunities for investment, development and construction across the country.”
Market highlights for H1 2025
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Hotel occupancy averaged nearly 55 per cent, up more than 14 per cent from H1 2024, with January and April peaking at 65 per cent.
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Average room rate stood at OMR47.7 ($124), a modest year-on-year increase.
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Domestic travellers accounted for over one-third of guests, followed by Europeans, Asians, and GCC visitors.
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Muscat Airport handled 90 per cent of arrivals, with Salalah managing 9.5 per cent.
The rise in occupancy was largely driven by an uptick in both domestic and international tourism, supported by government initiatives positioning Oman as a year-round destination. While pricing remained stable, hotels benefited from higher guest volumes.
Read: Oman’s real estate: How many homes, hotel rooms are to come up by 2030?
Source markets
Omanis accounted for 33.6 per cent (370,000) of hotel check-ins at 3–5-star hotels during H1, followed by Europeans (31.1 per cent) and Asians (14.3 per cent). GCC travellers represented 7.3 per cent, followed by other Arab markets (4.2 per cent), the Americas (3.4 per cent), Oceania (2.2 per cent), and Africa (0.7 per cent). The strongest growth came from Oceania.
Airport expansion and connectivity
More than 90 per cent of travellers arrived through Muscat International Airport, while Salalah International accounted for 9.5%. Duqm and Sohar airports jointly handled the remaining 0.4 per cent. With passenger volumes expected to reach 50 million by 2040, Oman plans to open six new regional airports by 2030 in destinations such as Al Jabal Akhdar, Masirah Island, and Sohar—bringing the total number of airports to 13.
Strategic tourism initiatives
Earlier this year, the Ministry of Heritage and Tourism launched new international campaigns to position Oman as a global travel destination, with representative offices planned in markets including Russia, Spain, Latin America, China, and Southeast Asia. The ministry also aims to collaborate with 80 international tourism companies to boost awareness of Oman’s diverse offerings.
Development pipeline
Major tourism hubs across Muscat, Salalah, and Jabal Akhdar are set for significant expansion:
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In Muscat, the Oman Botanic Garden is due for handover by the end of the year, while the Muttrah Cable Car is slated for completion in 2026.
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In Salalah, Boulevard Raza—featuring the Salalah Eye—will introduce new leisure and entertainment attractions.
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In Jabal Akhdar, plans are underway for a mixed-use mountain destination featuring 2,500 homes, 2,000 hotel rooms, and a health and wellness village at 2,400 metres above sea level. The Jabal Akhdar Park opened earlier this year.
Download the full Cavendish Maxwell Oman Hospitality Market Performance report [here].
