Oman’s tourism strong amid regional tensions

MUSCAT, OCT 29
Oman’s tourism and travel sector has shown remarkable resilience in the face of ongoing regional geopolitical instability, maintaining steady international visitor arrivals and capturing robust domestic demand throughout the first eight months of 2026.
Data released by the National Centre for Statistics and Information (NCSI) shows that the Sultanate of Oman welcomed 2.5 million visitors between January and August 2026, holding firm at levels comparable to the same period last year despite a severe downturn across the broader Middle East. According to UN Tourism, international tourist arrivals to the region plunged nearly 22 per cent in the first half of the year as flight disruptions and escalating tensions sparked heightened traveller caution.
Sustained domestic engagement has proved critical in offsetting weaker international travel demand, particularly from key European source markets. Tourist numbers in local hotels climbed 3.4 per cent, helping stabilise national hotel occupancy at 46.5 per cent through the end of September.
Simultaneously, domestic aviation expanded by 7.9 per cent, with passenger volumes reaching 896,000 by late August, up from 851,000 recorded during the same period in 2025.
In economic terms, added value generated by accommodation and food service activities totalled RO 369 million ($958 million) at constant prices during the first half of 2026 — a modest 3.3 per cent decline year-on-year. At current prices, added value edged down 0.7 per cent to RO 310 million.
Hospitality providers across the country are actively adjusting operational strategies to protect revenues and navigate persistent air connectivity hurdles.
Ubar Hotels and Resorts reported an encouraging start to the year, with revenues exceeding targets by 5 per cent through February before market conditions tightened in March. In response, the group launched local staycation packages, enhanced digital marketing, and trimmed operational spending to protect margins without compromising service standards.
Similarly, Gulf Hotels Oman noted that while disruptions to international flight schedules continue to weigh on advance bookings for the fourth quarter, targeted promotional efforts alongside commercial partners are actively reassuring travellers of Oman’s safety and stability.
A central factor supporting the sector's adaptability is the expansion of national and regional air connectivity. National carrier Oman Air maintained consistent schedules to primary target markets while launching direct routes to Tashkent, Uzbekistan, and Singapore.
Low-cost carrier SalamAir also introduced several new international routes, while direct charter services operated by Air Astana now connect Salalah with the Kazakh cities of Astana and Almaty twice weekly.
As the Sultanate of Oman enters its peak tourism season, which runs from October through March, hospitality leaders remain cautiously optimistic. With expanded air links and strong domestic fundamentals, the industry is well-positioned to regain momentum.