Oman’s tourism growth reflects GCC resilience

Tourism has long stood as one of the most resilient pillars of economic growth in the GCC and the wider Middle East, demonstrating remarkable adaptability in the face of both global crises and regional challenges.
Over the past decade, the sector has evolved from being a complementary source of revenue into a strategic engine for diversification, job creation, and nation branding. Wise government policies, robust health and safety protocols, and increasingly liberal visa regimes ensured that the industry not only survived the Covid-19 pandemic but rebounded faster than many global counterparts.
The region’s ability to provide a safe, secure, and well-managed environment for travellers reinforced its reputation as a dependable destination, even during periods of uncertainty. Massive investments in airport infrastructure, hospitality, cultural attractions, and digital services have given GCC countries a competitive edge.
At the same time, coordinated marketing campaigns that highlight heritage, luxury, adventure, and business tourism have helped reposition the Gulf as more than just a transit hub.
Although the sector faced new headwinds in recent years, its underlying strength remained evident. The recent wave of Israeli aggression in Gaza, its spillover into Lebanon, and disruptions to Red Sea shipping traffic created pressure points, particularly for cruise tourism and short-haul itineraries.
Despite these challenges, the broader tourism and aviation ecosystem remained steady. Passenger traffic and tourism receipts across the GCC quickly returned to pre-pandemic levels, underscoring the structural strength of hubs such as Dubai, Doha, Riyadh and Muscat.
Even the temporary setback in early 2026, when the United States and Israel launched military operations against Iran, did not derail the long-term growth trajectory.
Travel disruptions were felt in the immediate aftermath, with some route cancellations and cautionary travel advisories. However, by the peak summer season, passenger flows had largely normalised.
The main lingering effect was on pricing rather than volume. Airfares rose due to a combination of supply chain delays affecting aircraft deliveries, limited competition on certain routes, and elevated fuel prices linked to geopolitical risk premiums.
Against this regional backdrop, Oman’s tourism sector has emerged as a particularly bright spot, recording positive growth indicators in the first quarter of 2026. Its contribution to national GDP rose to 2.9 per cent, up from 2.6 per cent in the same period of 2025. Direct tourism GDP reached RO 293.8 million, representing a 6.5 per cent increase year-on-year. Total tourism output climbed to RO 610.4 million, marking a 9.7 per cent rise, while direct added value grew by 6.6 per cent to RO 286.4 million.
These figures extend a consistent upward trend. Tourism’s share of GDP has risen steadily from 1.6 per cent in 2020–2021 to 2.0 per cent in 2022, 2.5 per cent in 2023, and 2.7 per cent in 2024–2025, before reaching 2.9 per cent in early 2026. This growth reflects both increased visitor spending and a deliberate policy focus on expanding tourism products beyond traditional sun-and-sea offerings. Investments in eco-tourism, adventure travel, cultural heritage sites, and MICE — meetings, incentives, conferences, and exhibitions — are beginning to yield measurable returns.
Perhaps the clearest example of this resilience was Oman’s Khareef Dhofar Season. Despite geopolitical tensions and occasional adverse travel advisories, the season attracted 472,449 visitors between June 21 and July 31, 2026. That represents an increase of 6.9 per cent compared to the previous year. Domestic tourism continued to be the backbone, with Omani nationals accounting for 360,531 visitors. International arrivals made up 7.1 per cent of the total, a share that authorities are working to grow through targeted promotions in the GCC, Europe, and Asia. Notably, air arrivals rose sharply by 9.6 per cent, reaching 117,551 visitors, highlighting improved air connectivity and the appeal of Salalah as a summer destination.
The GCC’s broader tourism expansion is not coincidental. It is the result of deliberate, long-term investment and diversification strategies aligned with national visions such as Oman Vision 2040, Saudi Arabia's Vision 2030, and the UAE’s tourism strategy. In 2025 alone, the region poured over $200 billion into tourism-related projects, ranging from new resorts and theme parks to heritage restoration and sustainable tourism initiatives. This capital deployment has fuelled rapid growth and strengthened intra-Gulf travel, with citizens and residents increasingly exploring neighbouring countries for weekends and holidays.
At the wider Middle East level, travel and tourism recorded 5.3 per cent growth in 2025, outpacing the global average of 4.1 per cent. This outperformance signals that the region is gaining market share and becoming more integrated into global travel networks.