Oman's tourism sector on track to meet RO 2.6 billion investment target

MUSCAT: Oman's tourism sector is surging, powered by significant public and private investment and ambitious diversification goals under Oman Vision 2040. The nation's deliberate focus on high-value, sustainable tourism is translating into robust growth in visitor numbers and capital expenditure, cementing its status as a key pillar for future economic stability.
According to the Ministry of Heritage and Tourism, the sector's contribution to the national Gross Domestic Product (GDP) is demonstrating a healthy upward trend, hitting 2.7% in 2024 and projected to maintain this level into 2025 (based on preliminary Q1 data). This momentum builds on a foundation that saw the contribution increase from 1.6% in the years 2020 and 2021; and 2.0% in 2022.
The Sultanate of Oman is aggressively pursuing a target of reaching a 3.5% GDP contribution by 2030, with a longer-term aspiration of 5.3% by 2040. The current forecast for the overall total tourism output is estimated to reach RO 2.1 billion, with the total direct tourism value added estimated at RO 1.1 billion. The core of this growth is underpinned by massive capital spending, with the total tourism investments during the current Tenth Five-Year Plan (2021–2025) planned to reach RO 2.6 billion, signalling a strong commitment from the government to transform the industry.
This injection of capital is directly linked to expanding the nation's capacity and appeal. The Sultanate of Oman now boasts an inventory of 1,022 hotels offering a total of 35,331 rooms. Crucially, a major portion of development is concentrated within Integrated Tourism Complexes (ITCs), which serve as strategic anchors for growth. Muscat Governorate is the clear leader with 17 ITCs, while the Dhofar Governorate, a major seasonal destination, holds 5. The intentional spread of these large-scale projects is evident in the Al Batinah South Governorate with 4, Al Sharqiyah South Governorate with 3 and even in geographically important areas like Musandam Governorate and Al Batinah North Governorate, with 2 and 1 ITC respectively. This targeted, dispersed approach aims to unlock the unique tourism potential of various regions, ensuring a more inclusive economic benefit across the country.
The data on visitor flow highlights the market's dual strength, appealing to both international tourists and a powerful domestic audience. The country is estimated to have attracted 3.9 million Inbound Visitors in 2024, resulting in Inbound Tourism Expenditure of RO 989 million. However, the sheer volume of local travel cannot be overlooked, with 13.6 million local visitors contributing domestic tourism expenditure of RO 834 million. The popularity of the Khareef Dhofar Season in Dhofar Governorate remains a strong seasonal driver, recording 1.07 million visitors in the Khareef Dhofar Season 2025. The total number of guests across all accommodation categories reached 4.400 million, reflecting the sector's swift rebound and expansion following global events. Furthermore, accessibility has seen marked improvement, with 588 charter flights recorded for the 2024/2025 period, facilitating increased direct access, particularly from key European source markets.
As the Sultanate of Oman pushes towards its Oman Vision 2040 goals, the tourism sector acts as a clear barometer of success in economic diversification. The momentum demonstrated by achieving near-target figures for room capacity and exceeding visitor forecasts suggests that the strategic focus on infrastructure, investment and market segmentation is yielding tangible results.
With over RO 2.6 billion in planned investments and capacity distributed strategically through ITCs, Oman is not just anticipating growth; it is actively building the framework for a sustainable, high-impact tourism economy that will serve as a foundational element of its post-oil future. The convergence of soaring inbound visitor expenditure and strong domestic participation solidifies the sector's position as a robust and resilient engine for national wealth creation.