Oman’s Tourism Sector Soars: Record Hotel Revenues of $772 Million in 2025
Oman’s vibrant hospitality sector achieved an unprecedented milestone in 2025, with annual hotel revenues reaching a record OMR 297.3 million ($772 million). This remarkable performance represents a significant year-on-year increase of more than 22%, according to the latest report from Cavendish Maxwell, a leading real estate advisory and property consultancy.
Robust Growth in Guest Numbers and Occupancy
The Sultanate’s hotels welcomed an impressive 2.4 million guests last year, marking a nearly 11% surge compared to 2024. This influx of visitors contributed to a healthy average occupancy rate, which grew by 13.6% to almost 57%. Concurrently, average room rates saw a 4.7% increase, reaching approximately OMR 49 ($127), as highlighted in Cavendish Maxwell’s comprehensive analysis of Oman’s hospitality sector.
Expanding Infrastructure to Meet Demand
To accommodate this growing demand, Oman expanded its hotel capacity significantly, adding 900 new hotel rooms in 2025. This brought the total room inventory to 36,800. The expansion is set to continue, with an additional 2,400 rooms expected to enter the market this year, followed by another 900 in 2027, underscoring the nation’s commitment to developing its tourism infrastructure.
Expert Outlook: Sustained Growth Ahead
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, expressed optimism about the sector’s trajectory. “After a robust, record-breaking performance in 2025, Oman’s hospitality sector has entered this year with strong momentum. We are now in a phase of sustained growth, supported by a more diversified mix of source markets, rising domestic demand and higher occupancy levels,” Al Zadjali stated.
He further emphasized Oman’s unique appeal: “While regional geopolitical developments are an important consideration, Oman’s position as a culturally-rich destination, combined with proactive tourism campaigns and continued infrastructure investment is expected to support its appeal as a key destination for both domestic and international travellers.”
Airports Witness Increased Passenger Traffic
Oman’s airport network played a crucial role in facilitating this growth, welcoming just under 15 million passengers last year, a 2.8% increase over 2024. August emerged as the peak travel month, with 1.66 million visitors flocking to Oman, notably during Salalah’s popular Khareef season.
- Muscat International Airport remained the primary gateway, handling 13.2 million passengers and 88% of all air traffic.
- Salalah International Airport demonstrated strong performance among secondary hubs, with passenger volumes rising almost 10% to 1.7 million.
Growing Employment and Diverse Guest Demographics
The research, which focused on Oman’s 3-5 star hotels, also revealed a thriving job market within the industry. 11,200 people are now employed in the country’s hotel sector, marking a 7.3% increase from the previous year, with new job opportunities continuously being created as the sector expands.
Domestic tourism proved to be a significant driver, with Omani nationals leading demand for hotel accommodation in 2025, accounting for over 36% of guests—up from 33.8% the previous year. International visitors also showed strong interest:
- European travellers surged by 22%, representing nearly 28% of guests.
- Asian guests secured the third position, making up 14.5%.
Other vital source markets included the GCC, other Arab countries, Americans, Oceanians, and Africans, highlighting Oman’s broad international appeal.
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