MUSCAT, AUGUST 22
Hotels, restaurants, cafes and other tourism establishments in Oman face an October deadline to bring their operations into compliance with a new regulatory framework governing the sector.
The Ministry of Heritage and Tourism issued Ministerial Decision 1152/2/1/141/2026 implementing the Executive Regulation of the Tourism Law, pursuant to Royal Decree 69/2023. The regulation came into force on April 17, 2026, replacing the previous regulations, with existing licensed establishments given six months to comply, effectively setting a deadline in October.
A key feature of the new rules is a more structured classification system for tourism and hospitality establishments. According to a legal commentary published by well-known law firm Trowers & Hamlins, hotels are classified according to the standard one- to five-star system, while hotel apartments are divided into “luxury” and “standard” categories. Other accommodation establishments have designated classifications, with rest houses assigned one star and lodges classified as “standard”. Establishments may apply for reclassification at any time.
The regulations also significantly widen the scope of tourism classification for restaurants and cafes, the law firm explained. They are automatically deemed tourist establishments if they are located in tourist areas or sites, situated on government tourist land, operating within a hotel establishment, or managed under a franchise agreement.
The franchise provision is particularly broad, applying regardless of where the restaurant or cafe is located. Thus, a food and beverage business operating under a franchise agreement is automatically subject to the tourism classification regime.
Classified restaurants and cafes must obtain a tourism classification certificate before commencing operations. The certificate is valid for three years and renewable for successive three-year periods, with a fee of RO 200 ($520) per period. Applications for renewal must be submitted at least 60 days before expiry, while operating without a certificate can attract a RO 500 fine.
The regulations also impose significant financial obligations on tourist and hotel establishments. Operators must collect a 4 per cent tourism fee on all facilities, which is remitted to the Ministry on a quarterly basis together with auditor-certified statements.
In addition, an 8 per cent service charge is levied on services provided and must be distributed directly to employees, with operators required to submit a detailed statement to the Ministry. Failure to remit tourism fees for five consecutive months can lead to licence revocation, while failure to distribute the service charge attracts a fine of RO 1,000-3,000, doubled for repeat violations.
The regulations further require establishments to appoint a responsible manager, prominently display their licence and classification; and maintain electronic links with the Ministry and relevant authorities, Trowers & Hamlins added in its explainer.
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