Fast-growing tourism sector to contribute 2.4% to Oman’s GDP

MUSCAT: The tourism sector is among the key areas targeted for development under the Eleventh Five-Year Plan as a promising driver of economic diversification. The Ministry of Economy stated that the Plan aims for the sector to achieve an average contribution of 2.4% to GDP, alongside an average annual growth rate of 5.7%.
According to the Ministry, the sector is guided by policies designed to enhance impact and expand value creation. These include activating the National Tourism Development Strategy, fostering an attractive investment environment by boosting the competitiveness of governorates and special economic zones, diversifying tourism products and experiences; and encouraging investment and entrepreneurship.
Statistics show that the sector’s direct value added reached RO 873 million, while total tourism output stood at RO 1.99 billion by the end of September 2025. Annual investment expenditure of around RO 900 million has been earmarked for the sector, alongside RO 400 million to support economic transformation projects during the Eleventh Five-Year Plan period.
Economic experts note that Oman’s current plan comes at a turbulent global juncture, marked by market volatility and geopolitical challenges that are reshaping investment dynamics. It also coincides with a phase of fiscal discipline, operational standardisation and strengthened sustainability foundations, signalling a shift from maintaining fiscal balance to actively driving growth.
During the Tenth Five-Year Plan, the Ministry of Heritage and Tourism secured tourism investments exceeding RO 2.6 billion, with more than 12 tourism complexes currently under development. These efforts are enhancing Oman’s appeal as a regional and international investment and tourism destination.
The Eleventh Five-Year Plan represents the second implementation phase of Oman Vision 2040, which targets economic growth of around 4% at constant prices.
Efforts to further strengthen the sector are ongoing. A subcommittee of the Economic and Financial Committee of the State Council is conducting a study on tourism sector development — covering investment, economic performance and competitiveness — within the framework of Oman Vision 2040. The study aims to assess the link between tourism investment volumes and sectoral growth, support the attraction of high-quality and sustainable investments, identify key challenges, anticipate future opportunities and propose practical measures to enhance efficiency and long-term economic impact.
Strategic directions for 2026 emphasise sustainable tourism, with a focus on adventure tourism, ecotourism and the documentation of historical landmarks to reinforce the cultural value of the economy. Geographical diversification across governorates is also being prioritised to ensure broader community participation in and benefit from, tourism-led growth.