Oman’s Hospitality Sector Shows Strong Revenue Growth and Diversified Demand, Latest Data Indicates

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Oman’s hospitality market delivered a strong performance in 2025, signalling a clear shift from recovery to sustained growth, supported by rising tourism demand and improved connectivity.

Airport traffic reached 14.9 million passengers, up 2.8% year-on-year, while the 3–5-star hotel segment welcomed approximately 2.4 million guests—an increase of 10.8% compared to 2024. 

Growth was driven by a more diversified mix of domestic and international travellers, alongside seasonal demand peaks such as the Khareef period.

Operational performance strengthened across the sector, with total hotel revenues rising 22.2% year-on-year to OMR 297.3 million—the highest level in recent years. Occupancy climbed to an average of 56.7%, up from 49.9% in 2024, while average room rates increased by 4.7% to OMR 48.6, reflecting improved pricing power, particularly during the winter months.

Demand diversification remained a key driver, with domestic travellers accounting for 36.1% of total guests, followed by strong growth from European and Asian markets. At the same time, off-peak performance improved, signalling a gradual broadening of demand beyond traditional seasonal highs.

“We’ve successfully broadened our guest mix, improved occupancy levels, and demonstrated pricing power across our portfolio. Our destination’s inherent appeal as a culturally rich, secure haven continues to resonate with travellers.”

Khalil Al Zadjali
Head of Oman
Cavendish Maxwell

Looking ahead, the market is expected to maintain momentum, with approximately 2,400 new hotel rooms projected for delivery in 2026. If demand continues to track current growth levels, Oman is well positioned to absorb new supply while sustaining healthy occupancy and revenue performance.

For the MICE and wider travel ecosystem, the results point to a destination that is not only growing in volume, but evolving in market maturity, demand diversity, and year-round performance, key factors in strengthening its competitiveness across the region.

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