According to the Cavendish Maxwell H1 2025 report, Oman’s hospitality sector performed strongly in 2025, thus providing a solid foundation for 2026. Moreover, rising guest numbers, higher revenues, and increased occupancy throughout 2025 signal that hotels are well positioned for next year’s growth.
Population and economy underpin future hospitality demand
Oman’s population growth of 4.5 percent in 2024 continues to support hotel demand. Furthermore, domestic trips increased from 12.9 million in 2023 to 13.6 million in 2024. This reflects longer stays and higher spending per visitor. Additionally, international arrivals continue to diversify, with Europe, India, and China contributing to growing visitor numbers across three- to five-star hotels. As a result, tourism’s contribution to GDP is expected to continue rising toward 5 percent by 2030 and 10 percent by 2040. Consequently, the sector is projected to remain a key pillar of Oman’s economy. It will support employment, investment, and hospitality development in 2026. According to Khalil Al Zadjali, head of Oman at Cavendish Maxwell, “By diversifying tourism offerings and expanding infrastructure, Oman is well positioned to attract broader visitors and create lasting economic value.”
Hotels expected to maintain strong performance
Oman’s three- to five-star hotels are expected to maintain strong performance in 2026, following a robust first half of 2025. Moreover, hotel revenues reached OMR 141.2 million in H1 2025. This was supported by higher occupancy and stable average room rates overall. Hotel employment increased by 4.8 percent to approximately 10,800 staff. Workforce expansion is expected to continue into 2026 efficiently. Looking ahead, around 7,000 new rooms are planned between 2026 and 2030. This demonstrates sustained investor confidence in Oman’s hospitality sector.
Tourism attractions and infrastructure support growth
Oman’s ongoing development in Muscat, Salalah, and Jabal Akhdar is set to enhance visitor experiences. It will reinforce the country’s attractiveness in 2026. Moreover, new tourism projects and government-led initiatives aim to diversify offerings. These initiatives attract visitors from a wider range of international markets.
By 2026, these initiatives, combined with hotel expansions, improved airport connectivity, and strategic promotional campaigns, are expected to strengthen Oman’s overall hospitality performance. Therefore, continued investment, expanded infrastructure, and strategic government support signal a highly optimistic outlook for Oman’s hospitality market throughout 2026.
With a combination of private sector investment, government initiatives, and ongoing development across key destinations, Oman is poised to strengthen its position as a leading hospitality and tourism hub in the region.
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