Muscat – Oman’s tourism sector is experiencing a transformative period, as the country intensifies efforts to diversify its economy in line with Oman Vision 2040. With major investments announced in 2024 and significant growth in both domestic and international tourism, the sultanate is positioning itself as a leading destination in the Middle East.
In coordination with Oman Investment Authority and Omran Group, Ministry of Heritage and Tourism has set ambitious goals to develop the nation’s tourism infrastructure. State-owned tourism development company Omran has announced plans to invest US$3bn over the next five years in strategic tourism projects. This investment is aligned with Oman Vision 2040’s objectives of economic diversification and sustainable tourism growth.
“We are committed to developing sustainable tourism destinations that enhance Oman’s global profile,” stated Hashil al Mahrouqi, CEO of Omran Group. He noted that the investment aims to propel economic growth and attract more international visitors. By 2034, Oman’s tourism sector is expected to contribute over RO5.4bn to the economy, representing 9.8% of the GDP, and employ more than 265,000 people, with one in 13 residents working in the sector.
Omran has also succeeded in attracting almost US$2bn in foreign investments for various projects. These funds will support the construction of luxury resorts, eco-friendly developments and infrastructure improvements, which will further position Oman as a premier tourism destination.
$31bn investment plan by 2040
The Ministry of Heritage and Tourism has announced a comprehensive plan to invest over US$31bn in tourism by 2040. This plan, unveiled at the ITB Berlin Convention in March 2024, is designed to enhance tourism offerings and promote Oman as a top destination for both leisure and business travellers.
H E Azzan al Busaidi, Undersecretary for Tourism, emphasised the fact that events like ITB Berlin provide a global platform to showcase Oman’s unique tourism offerings and “allow us to attract foreign investments that are critical for the sector’s growth”.
Increasing arrivals and economic impact
In 2023, the country welcomed 4mn visitors, a substantial increase from the previous year. Notably, the number of German tourists rose 182%, demonstrating Oman’s growing appeal in European markets.
The 2024 Economic Impact Research by World Travel and Tourism Council (WTTC) shows Oman’s tourism sector is set for historic growth. In 2023, the sector contributed RO2.8bn to the country’s GDP, a 35% increase from 2022. This momentum is expected to continue in 2024, with the sector forecast to contribute RO3.3bn, equivalent to 7.6% of Oman’s economy.
Domestic tourism has also seen a resurgence with domestic visitors spending RO1.4bn in 2023, a figure that is expected to increase to RO1.5bn in 2024. Meanwhile, international visitors contributed RO1.1bn to the economy in 2023, a 69% jump from the previous year.
According to Julia Simpson, President and CEO of WTTC, Oman’s travel and tourism sector is “on the cusp of a historic revival” in 2024. “The government’s strategic initiatives and investments are setting the stage for unprecedented economic growth and job creation in the tourism sector.”
Focus on sustainable tourism
Oman is placing strong emphasis on sustainability and eco-friendly developments in its tourism strategy. Several upcoming projects, such as the Nasim Resort at Jabal Akhdar, are designed to attract high-end tourists while minimising environmental impact. These projects are part of a broader shift towards responsible tourism that aligns with global sustainability goals.
Omran Group is spearheading efforts to create sustainable and innovative urban communities. CEO Mahrouqi highlighted Omran’s role in promoting Oman as a premier destination through initiatives such as ‘Visit Oman’, which connects local tourism offerings with international markets. This platform plays a critical role in attracting foreign tourists and investments, further enhancing Oman’s appeal on the global stage.
To accommodate the expected influx of tourists, Oman is investing heavily in infrastructure development. The Ministry of Heritage and Tourism has earmarked US$5.9bn for 360 tourism projects that are expected to improve the country’s hospitality, transportation and cultural offerings. These projects include new hotels, resorts and enhanced transport links between Oman’s key tourist destinations.
Visa reforms are also being implemented to make Oman more accessible to international visitors. The government has streamlined visa procedures and eased restrictions for travellers from over 100 countries, making it easier for tourists to enter and explore the sultanate. These measures are designed to enhance the overall visitor experience.
Promising outlook
The first half of 2024 has already shown promising results with 2mn visitors arriving in Oman by June, a 5.2% increase compared to the same period in 2023.
The hospitality sector also seen strong growth with hotel revenues rising 8.6% to RO119.5mn in the first half of the year. The number of guests in three- to five-star hotels increased 10.7% indicating a growing demand for luxury accommodation.
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