Investing in Oman’s Tourism: Opportunities in a Diversifying Gulf Economy

Oman’s tourism sector is a key pillar of its diversification strategy, with major investments in infrastructure, hospitality driving growth.

As Oman charts a path toward economic diversification under Vision 2040, tourism has emerged as a strategic growth pillar. With its rich cultural heritage, dramatic natural landscapes, and a long-standing commitment to environmental preservation, the Sultanate is uniquely positioned to capture regional and global tourism flows. In recent years, the government has taken bold steps to transform the sector, accelerating infrastructure investment, streamlining investor access, and launching targeted global marketing campaigns.

This article explores the key dimensions of Oman’s tourism revival: from post-pandemic growth trends and eco-tourism leadership to investment incentives and infrastructure megaprojects, all of which reflect Oman’s ambition to become a year-round, high-value destination.

Oman’s tourism market growth

Oman’s tourism sector has staged a robust recovery from the disruptions of the COVID-19 pandemic, with visitor numbers and economic performance reflecting a strong rebound. International arrivals rose sharply from approximately 2.9 million in 2022 to around 4 million in 2023, a trajectory that has maintained momentum through 2024. This resurgence translated into significant economic gains: tourism contributed an estimated OMR 2.12 billion (US$5.51 billion) to the national economy in 2024, underscoring the industry’s growing macroeconomic relevance.

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This upward trend is also visible in key performance indicators within the hospitality sector. Revenues from three- to five-star hotels increased by approximately 18 percent in the first half of 2025, while tourism-related employment climbed to about 191,500 jobs in 2023, a notable 15 percent year-on-year increase. Domestic travel has played a crucial role in this expansion, with Omani residents undertaking roughly 13.6 million internal trips in 2024, marking a 5 percent rise over the previous year. This diversification of demand sources has helped stabilize the sector and reduce dependency on foreign arrivals alone.

Looking ahead, the World Travel & Tourism Council projects the tourism sector’s share of GDP to grow from around 2.7 percent in 2024 to 3.0 percent by 2025, with government ambitions targeting a rise to 5 percent by 2030 and a long-term goal of 10 percent by 2040. These figures highlight the sector’s centrality to Oman’s broader economic diversification strategy.

Importantly, Oman is not only recovering but also expanding its global reach. In 2024, the country made strategic inroads into non-Gulf source markets. The opening of dedicated tourism offices in Beijing led to an influx of visitors from China  (approximately 73,000 tourists) signaling the success of Oman’s targeted international marketing campaigns.

Tourism revenue rose accordingly: in 2024 the sector contributed OMR2.12 billion (US$5.51 billion) to the economy. Hotel performance and employment have also climbed, with 3–5-star hotel revenues up 18 percent in H1 2025 and sector jobs reaching about 191,500 (a 15 percent rise in 2023). Domestic tourism is surging in parallel: Omanis took an estimated 13.6 million trips within the country in 2024 (up 5 percent from 2023), helping to diversify demand.

Government strategy and infrastructure investment

Oman has set ambitious long-term targets for its tourism sector, aiming to attract approximately 11 million visitors annually by 2040. To lay the groundwork for this transformation, the government (through the Ministry of Heritage and Tourism) has adopted an assertive, multipronged strategy focused on promotion, market diversification, and infrastructure expansion.

Central to these efforts is a global marketing push. Over the past few years, Oman has launched more than 230 promotional campaigns, which together have generated an estimated OMR 95.7 million (US$248.89 million) in returns. New tourism offices have been opened in key global cities such as Madrid and Singapore, signaling a deliberate pivot to reach new source markets.

Visa facilitation has also played a pivotal role: with an e-visa platform and visa-on-arrival available to nationals of over 100 countries, Oman has made inbound travel more seamless and accessible.

Complementing these national initiatives are regional collaborations designed to boost collective tourism appeal. Notably, Oman is participating in the upcoming GCC unified visa scheme, which will allow cross-border tourism across Gulf states under a single entry process. Joint promotional ventures (such as the “See Double” campaign with Ras Al Khaimah, further highlight Oman’s willingness to integrate its appeal with broader regional tourism circuits.

The country is also targeting affluent, sustainability-minded travelers from high-potential markets including India, China, and Europe, reflecting a clear shift toward value-driven tourism.

On the infrastructure front, Oman is making parallel investments to support the projected surge in demand. At the core of this effort is the US$800 million “Airport City” program, a transformative initiative aimed at turning Muscat, Salalah, and Suhar airports into integrated economic and tourism hubs by 2030. Muscat Airport City, which has already secured over US$80 million in investments and aims for US$500 million by the end of the decade, will feature logistics centers, commercial zones, and hospitality offerings.

Further broadening national connectivity, plans are in motion to develop six new regional airports by 2028–2029, enabling easier access to inland and remote destinations. Road infrastructure is also receiving a significant boost: the government approved 42 new projects in 2024 alone, including major works such as the dualization of the 400-kilometer Adam–Thumrait highway and expanded roadways to scenic sites like Jebel Shams.

Collectively, these investments are designed to position Oman as a year-round destination, while ensuring that growth remains inclusive and geographically balanced.

Sustainability and eco-tourism

Sustainability lies at the heart of Oman’s long-term tourism vision, with over 20 percent of the country’s landmass designated as protected areas. These range from the biodiverse Daymaniyat Islands marine reserve to the expansive Arabian Oryx Sanctuary in the Empty Quarter—each a testament to Oman’s commitment to environmental stewardship and ecological tourism.

In 2025, the Environment Authority significantly advanced this agenda by awarding contracts worth OMR 44 million (US$114 million) to develop eco-tourism infrastructure across seven nature reserves. In collaboration with OMRAN and other public-private entities, these initiatives aim to establish eco-lodges, low-impact campsites, hiking trails, and even stargazing parks, designed not only to attract visitors but to foster environmental awareness and local participation.

Priority sites include Ras Al Shajar, the Arabian Oryx Sanctuary, Khor Al Mughsail, and the Turtle Reserve in Sharqiya Sands. Each of these projects is grounded in rigorous environmental standards, including impact assessments and the use of sustainable construction materials, while also integrating local communities into tourism planning and service delivery.

On the ground, this vision translates into a push for off-season and adventure touris: sectors that help disperse visitor flows and mitigate pressure on popular destinations. Oman is increasingly promoting experiences such as hiking, diving, caving, and camping. Notable examples include:

• The ongoing upgrades at Wadi Al Shab, where new facilities are enhancing its appeal as an eco-adventure site; and
• Enhancements to cave tourism at Majlis al-Jinn and Al-Hoota, with improved access and interpretive services.

Investment prospects and partnerships

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As Oman’s tourism sector gathers momentum, the government is actively positioning the country as an attractive destination for domestic and international investment. Since 2022, the private sector has pledged more than US$10 billion toward the development of hotels and integrated tourism complexes, a figure that authorities expect to match or exceed in the coming years.

This surge in capital commitment reflects growing investor confidence in Oman’s tourism growth story and the enabling policy environment underpinning it.

Key to this investor-friendly landscape are Oman’s economic free zones, located in Duqm, Sohar, and Salalah, which offer a suite of incentives including 100 percent foreign ownership, long-term tax holidays, and streamlined land allocation. Complementing these structural advantages is the introduction of the Golden Visa program in 2025, which grants long-term residency to qualifying investors. The government has also modernized its business environment through digital portals such as Invest Easy, which simplify company registration and licensing procedures, further lowering barriers to entry.

Oman offers broad investment potential across the tourism value chain:

• Accommodation: luxury, wellness, midscale hotels, and boutique desert lodges
• Experiential travel: glamping, eco-lodges in protected areas, adventure-based resorts
• Transport infrastructure: marinas, cruise terminals, and road access to remote destinations
• Entertainment and recreation: theme parks, adventure centers, heritage villages
• Support services: travel-tech, digital platforms, logistics, and retail operations

Conclusion

Oman’s tourism sector is no longer in recovery: it is in transformation. With strong government leadership, investor-friendly policies, and a diversified strategy that blends environmental sustainability with economic opportunity, the country is laying the foundation for long-term, inclusive tourism growth.

As new infrastructure comes online and global interest continues to rise, Oman is poised not only to achieve its 2040 visitor targets but also to set a regional benchmark in responsible, high-yield tourism development. For investors, operators, and policy stakeholders, Oman represents one of the Gulf’s most promising and thoughtfully planned tourism markets.

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