Muscat – A new report – Oman Hospitality Market Performance H1 2025 – real estate advisory firm Cavendish Maxwell, highlights robust demand driven by population growth, evolving domestic travel, and strategic government initiatives aimed at diversifying the tourism sector.

With plans to add 9,600 new hotel rooms by 2030, including 2,600 keys slated for completion by the end of 2025, the country’s current hotel inventory of 36,000 rooms will grow by over 25%, signalling a strong outlook for the nation’s tourism industry.

In the first six months of the year, 3-5-star hotels recorded an average occupancy rate of 54.7 percent, marking a substantial 14.4 percent increase compared to the same period last year.

Revenues generated by hotels rated 3 to 5 stars reached RO 141.2 million (USD 367 million) between January and June 2025, showing an 18.2 percent increase compared to the same period in 2024. Room revenues alone rose nearly 22 percent, reaching RO 83.7 million (USD 217.5 million). The sector also witnessed a 9.2 percent rise in guest arrivals, with 1.1 million visitors staying at 3 to 5-star properties during H1 2025. This surge in activity contributed to a 4.8 percent increase in hospitality employment, with 10,800 individuals now working in the industry.

“Overall domestic trips increased in line with population growth, from 12.9 million in 2023 to 13.6 million in 2024, but Omanis are also travelling differently. An 8% rise in reported hospitality days indicates they are taking longer trips and spending more per visit, reinforcing demand across the sector,” the report stated.

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, noted, “Oman’s hospitality sector is entering a new era. The impressive increases recorded in the first half of 2025—across visitors, bookings, and revenue—underscore the effectiveness of strategic investment and the country’s unique appeal. We anticipate this positive trajectory will continue, driven by the ongoing development of world-class infrastructure and diversification of tourism offerings.”