Oman’s Tourism Sector Set to Hit RO 2.6 Billion Investment Target: What This Means for Investors and Entrepreneurs
MUSCAT: Oman’s tourism sector is experiencing significant growth, driven by substantial public and private investments alongside the ambitious diversification objectives outlined in Oman Vision 2040. The country’s focused strategy on high-value, sustainable tourism is resulting in increased visitor numbers and capital investment, establishing tourism as a vital pillar for future economic stability.
The Ministry of Heritage and Tourism reports that the sector’s contribution to the national Gross Domestic Product (GDP) has shown a strong upward trajectory, reaching 2.7% in 2024, with projections indicating this level will be sustained into 2025 based on preliminary first-quarter data. This progress builds on previous growth, where the tourism GDP contribution rose from 1.6% in 2020 and 2021 to 2.0% in 2022.
Oman aims to increase this contribution further, targeting 3.5% of GDP by 2030 and 5.3% by 2040. The current forecast estimates total tourism output at RO 2.1 billion, with direct tourism value added at RO 1.1 billion. Central to this expansion is a significant capital infusion, with planned tourism investments during the Tenth Five-Year Plan (2021–2025) reaching RO 2.6 billion, underscoring the government’s commitment to transforming the sector.
This investment surge supports the expansion of Oman’s accommodation capacity and appeal. The Sultanate now hosts 1,022 hotels with a total of 35,331 rooms. Notably, much of the development is concentrated within Integrated Tourism Complexes (ITCs), which function as strategic growth hubs. Muscat Governorate leads with 17 ITCs, followed by Dhofar Governorate with five, known for its seasonal tourism draw during the Khareef Dhofar season. Other governorates with significant ITC presence include Al Batinah South (4), Al Sharqiyah South (3), Musandam (2), and Al Batinah North (1). This deliberate geographic distribution aims to unlock diverse regional tourism potentials, fostering inclusive economic benefits nationwide.
Visitor data reveals a balanced tourism market with strong international and domestic demand. Oman is projected to welcome 3.9 million inbound visitors in 2024, generating inbound tourism expenditure of RO 989 million. Domestic tourism remains robust, with 13.6 million local visitors contributing RO 834 million in expenditure. The Khareef Dhofar season continues to be a major attraction, drawing 1.07 million visitors in 2025. Overall, guest numbers across all accommodation categories reached 4.4 million, signaling a rapid recovery and growth following global disruptions. Accessibility improvements are evident, with 588 charter flights recorded for the 2024/2025 period, enhancing direct connections, particularly from key European markets.
As Oman advances toward its Vision 2040 targets, the tourism sector serves as a key indicator of successful economic diversification. Near-target achievements in room capacity and visitor numbers reflect the effectiveness of strategic investments, infrastructure development, and targeted market segmentation.
With over RO 2.6 billion earmarked for investment and strategically placed ITCs, Oman is not merely anticipating growth but actively constructing a sustainable, high-impact tourism economy poised to be a cornerstone of its post-oil future. The combination of rising inbound spending and strong domestic participation firmly establishes tourism as a powerful and resilient driver of national wealth creation.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s tourism sector is rapidly evolving into a pillar of economic diversification and resilience, driven by strategic investments totaling RO 2.6 billion under Vision 2040. Businesses and investors should capitalize on the expanding Integrated Tourism Complexes (ITCs) and growing visitor base, leveraging the surge in both international and domestic tourism to unlock new opportunities in hospitality, services, and infrastructure. The sustained growth signal represents a high-potential market with reduced oil dependency and flourishing regional appeal, but requires agile adaptation to evolving tourism preferences and infrastructure demands.
