Oman’s real estate market has been recovering since early 2019. The continuing recovery
of oil prices, the introduction of natural gas production at the Khazzan gas field, and the
completion of the new Muscat International Airport are some of the major factors expected
to encourage private sector investment in Oman, which may give a boost to the country’s
GDP growth. This growth is also anticipated to enhance the commercial real estate sector’s
performance in the country.
Tourism contributed 2.8% to Oman’s GDP in 2016. In the same year the government
launched the Oman Tourism Strategy (2016 -2040)ز .The strategy aims to boost the
share of the sector’s contribution to GDP to 6-10% by 2040, attracting 11 million local
and international tourists, and creating over 500,000 jobs through an investment of
OMR 19 billion.
In 2018, tourism contributed 2.9% to Oman’s GDP. Total tourism revenue in Oman stood
at OMR 1.4 billion of which inbound tourists contributed 49% at OMR 680 million. The
remaining 51% at OMR 700 million was derived from domestic tourism.
According to NCSI data, the number of visitors to Oman has increased over the last five
years, from 1.9 million in 2013 to 3.2 million in 2018 registering a positive CAGR of 11%.
Compared to 2017, the number of visitors coming to Oman recorded a year-on-year
growth of 2%. In 2019, Oman welcomed 3.5 million visitors.
Visitors from GCC countries made up the highest share at 45%, followed by Asians
at 21% and Europeans at 19%. Of the 2.3 million overnight visitors, 1.5 million stayed in
hotels and hotel apartments, 484,000 with relatives and friends, whilst the remaining
stayed in furnished flats and other accommodation. Visitors spent a total of
OMR 679.2 million of which accommodation represented the
bulk of expenses at 31%. Accommodation spending reached OMR 213 million in 2018
compared to OMR 183 million in 2017, registering a year-on-year increase of 15.6%.
Apart from increasing contribution towards GDP and generating employment
opportunities, Oman’s push for tourism is expected to support 1,200 tourism SMEs and
stimulate the overall local economy, readying it for future growth
HOSPITALITY Visitor numbers have displayed stable growth from 3 million in 2016 to
3.3 million in 2017 and 2018. With 2.3 million of these being overnight visitors in 2018,
Oman is preparing to offer plenty of hotel supply across categories to cater to the
varied needs of tourists.
Oman also secured the 58th place among 140 nations in the 2019 Global Travel and Tourism
Competitiveness Report by the World Economic Forum, moving up eight spots from the previous
ranking achieved in 2017. The biennial study measures the factors and policies that enable the
sustainable development of the sector, and thereby the wider economy.
As of December 2019, total occupancy rates in 3-5 star-hotels was 65.8% compared to 66.1% in
December 2018 showing a slight decrease. However, during the same period revenues rose 6.5% from
OMR 25.7 million in December 2018 to OMR 27.4 million in December 2019.
As of 2018, hotel establishments in Oman stood at approximately 412 including 23 hotels in the 5-star
category. According to Oman’s Ministry of Tourism (MoT), 31 hotels were expected to open in the
country in 2019, adding a total of 3,264 rooms to the market
