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Oman’s tourism sector sees strong recovery, GDP contribution expected to reach 5.9% by 2040

The Omani Economic Association hosted its 24th dialogue session on Monday, February 24, at the Cultural Club in Qurum, where the potential and opportunities in Oman’s tourism sector were discussed.

TAS News Service

info@thearabianstories.com

Tuesday, February 25, 2025

Muscat – His Excellency Azzan bin Qasim Al Busaidi, Undersecretary of the Ministry of Heritage and Tourism for Tourism, outlined the sector’s recovery and future growth plans, alongside Dr. Khalid bin Saeed Al Amri, Chairman of the Omani Economic Association.

The dialogue session focused on the opportunities and challenges facing Oman’s tourism sector, with a strong emphasis on its role as a key driver of economic diversification. His Excellency Azzan Al Busaidi confirmed the sector’s full recovery from the COVID-19 pandemic, noting that tourism indicators at the end of 2024 surpassed pre-pandemic levels. He revealed that the total number of hotel facilities reached approximately 1,000, and tourism investments totalled RO 2.4 billion by the end of 2024.

Despite the positive recovery, His Excellency Al Busaidi acknowledged that the private tourism sector is still grappling with the pandemic’s financial repercussions. He also highlighted the Ministry’s efforts to address unlicensed accommodation facilities, with over 1,500 currently operating within the Sultanate. The Ministry is actively working to regularize these establishments.

To further boost tourism, the Sultanate has reopened its tourism representative office in China, targeting the growing Chinese tourist market. The Undersecretary also outlined upcoming projects, including the development of the White Mountain, Ras Al Hadd, Muttrah Marine Road, sand dunes in North and South Al Sharqiyah, Al Jabal Al Akhdar, the coastal strip from Quriyat to Sur, the copper path in North Al Batinah, and a cave in Ibri.

Dr. Khalid bin Saeed Al Amri emphasised the tourism sector’s remarkable revenue growth and its potential to contribute significantly to Oman’s GDP. The government aims to increase the sector’s contribution to 5.9 percent of GDP by 2040, making it a crucial component of the nation’s economic diversification strategy.

The Ministry of Heritage and Tourism has set ambitious targets for 2025, aiming for a 2.75 percent contribution to GDP at constant prices, RO 3 billion in investments from 2021 to 2025, and at least 33,000 hotel rooms by the end of 2025. Dr. Al Amri stressed the need to overcome challenges and capitalize on opportunities to position Oman as a leading global tourist destination.

The session underscored the collaborative efforts between the government and the private sector to enhance the tourism experience, attract international visitors, and drive sustainable economic growth in Oman.

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