Oman’s hotel revenues jump 18%, driven by strong travel demand and rising occupancy

Dubai: Oman’s hospitality sector maintained strong momentum through the first nine months of 2025, as robust domestic and international travel lifted hotel occupancy, guest volumes, and total revenues. According to new research by Cavendish Maxwell, hotel revenues rose more than 18% year-on-year to reach OMR193.4 million ($505 million) by the end of September, marking the strongest nine-month performance on record.
Room revenues alone grew by nearly 21%, while hotel employment increased by 5.3%, reflecting higher service requirements to meet expanding demand. Occupancy levels averaged 52.8%, up by 13% from the same period in 2024, showing that hotels are effectively absorbing new supply and extending performance beyond traditional peak seasons.
“Oman’s hospitality industry performed strongly to the end of Q3 2025, with robust demand from domestic and international travellers,” said Khalil Al Zadjali, Head of Oman at Cavendish Maxwell. “Government investment, population growth, targeted marketing initiatives and evolving travel patterns are all playing key roles in the success of the sector, which is set to enjoy further growth, resilience and diversity in 2026 and beyond.”
Oman’s airports handled 11.2 million passengers between January and September 2025, a modest increase of 0.7% from the previous year, according to Civil Aviation Authority data. Despite limited operations at Suhar International Airport, total passenger volumes are expected to reach 14.6–14.9 million by year-end, up from 14.5 million in 2024.
Muscat International Airport continued to dominate traffic, serving 9.8 million passengers or nearly 87% of the total. Salalah International Airport ranked second with 1.4 million passengers, of which more than a fifth arrived during the Khareef season, a key travel period that boosted both air traffic and hotel demand in the southern Dhofar Governorate.
Guest arrivals at 3–5 star hotels reached 1.7 million during the first nine months of 2025, a 9% increase compared with the same period last year. Omani nationals accounted for 38% of total guests, underlining the strength of domestic tourism. European visitors ranked second at 24.7%, followed by travellers from Asia (14.4%) and the GCC (9.9%). Other Arab nationals contributed 4.5%, while guests from the Americas, Oceania, and Africa made up the rest.
Government initiatives such as the #WithinOman campaign and the Experience Our Winter programme have helped raise travel volumes across both local and target foreign markets. These campaigns have supported a more balanced visitor base and helped smooth seasonal fluctuations in demand.
The average room rate (ARR) across 3–5 star hotels stood at OMR45.3 ($117) for the nine-month period, just 1.3% higher than a year earlier. The stability shows that hotel operators are focused on maximising occupancy and optimising room inventory rather than driving growth through steep rate increases.
Rates were strongest in April, followed by February and August, reflecting tourism peaks around public holidays and the Khareef season in the south.
Oman’s hotel room inventory stood at 36,300 rooms at the end of the third quarter, with about 1,000 additional rooms scheduled to be completed before year-end. Another 3,000 rooms are expected to come onstream by 2027, raising the total to 40,300.
At the same time, the Ministry of Heritage and Tourism advanced sector development by signing 36 usufruct agreements worth OMR100 million ($260 million). These projects include hotels, resorts and integrated tourism complexes spread across multiple governorates, helping to diversify the accommodation landscape.
Analysts expect the sector’s outlook to remain solid, with hotel performance supported by steady international arrivals, stronger domestic tourism, and continued infrastructure investment. The market’s ability to efficiently absorb new capacity suggests a stable, sustainable growth path.
Oman’s hospitality industry is entering a new phase characterised by steady expansion and deeper market diversity. The combination of government initiatives, private investment, and growing regional connectivity positions the Sultanate to sustain its year-round appeal and build on the gains achieved through 2025.
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