Oman's Ambitious Tourism Drive: US$ 31 Billion Investment Set to Transform Industry by 2040

Oman is situated on the southeastern coast of the Arabian Peninsula. It boasts a rich cultural heritage, stunning landscapes, and a diverse range of attractions, making it an emerging destination in the tourism market. The country offers a wide array of tourist activities, including sunbathing, swimming, kitesurfing, diving, snorkeling, boating, among many others. Beach activities and kite surfing are popular in Muscat, Al Sawadi Beach, Alzaiba Beach, and Masirah Island, while desert safaris are a highlight in Wahiba Sands. Oman's rich historical heritage includes numerous UNESCO World Heritage Sites, ancient temples, forts, and palaces, such as Bahla Fort and the Archaeological Sites of Bat, Al-Khutm, and Al-Ayn.

The tourism industry is a significant contributor to Oman’s economy. In 2023, the country welcomed four million visitors, marking a 38 percent increase from 2022. To further boost the tourism sector, Oman plans to invest US$ 31 Billion in the industry by 2040. The focus is on creating an environment conducive to tourism growth, streamlining visa application processes, easing restrictions for citizens of over 100 countries, and investing in infrastructure and attractions.

Exploring the Key Market Drivers Fueling Oman's Tourism Industry Growth

According to a study by IMARC Services Private Limited , the Oman tourism market is expected to grow at a lucrative pace in the coming years. The demand for tourism services in Oman has significantly increased over time, driven by government initiatives to promote Omani tourism worldwide. Various factors contributing to the market's growth are outlined below:

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Presence of Numerous Tourist Destinations: Oman boasts a rich cultural heritage with historical sites, forts, castles, and traditional villages such as Muscat, Nizwa, and Salalah. Moreover, the presence of diverse natural landscapes, including deserts, mountains, beaches, and wadis, along with iconic sites such as Jebel Akhdar, Wahiba Sands, and the Musandam Peninsula, is attracting more tourists to Oman.

Government Support for the Tourism Sector: Oman's government has been actively promoting tourism as a key sector for economic diversification. The government is also expanding tourism infrastructure through the construction of new adventure tourism projects such as cable cars, ziplines, and mountain trails. Moreover, the tourism sector is poised to gain additional momentum following last year's announcement of a unified GCC-wide tourism visa set to be introduced in 2024 or 2025.

Increasing Investments in Tourism Industry: The growing investments are boosting the tourism market in Oman by promoting destination marketing, enhancing visitor experiences, and supporting sustainable tourism initiatives. Moreover, these investments are also fostering infrastructure development, such as airports, roads, and hotels, which contribute to the ease of travel. Furthermore, travel blogs and social media platforms have a positive impact on the market.

Discover the Untapped Opportunity: Exploring Oman's Booming Tourism Industry

• The burgeoning tourism industry, fueled by its diverse cultural heritage, breathtaking landscapes, and rising appeal as a travel hotspot, offers a substantial opportunity for the expansion of Oman's hotel and hospitality sector.
• The Oman tourism sector offers a lucrative opportunity for real estate development, driven by increasing demand for hospitality infrastructure, resorts, and vacation homes. In 2024, the government of Oman allocated US$ 11.37 Billion for investments in hospitality and real estate and approved 19 new integrated tourism licenses. This initiative aims to introduce over 16,500 hotel rooms and 42,500 housing units nationwide, including non-property ownership options, potentially boosting foreign investments in the sector.
• Tourism has created abundant job opportunities for the residents of Oman. In 2023, the tourism sector employed 179,750 workers, 16,799 of whom were Omanis. The Omani government aims to further strengthen the industry by generating 500,000 jobs by 2040. Initiatives focusing on education, training, and employment are already underway to support this goal.
• Oman's tourism sector presents a significant opportunity for economic growth and GDP expansion. Its contribution to Oman's GDP has been steadily increasing, with the sector posting a direct added value of US$ 424 Million (RO 1.1 Billion) in 2022, a 33 percent increase from 2021. According to the National Centre for Statistics and Information (NCSI), tourism contributed 2.4 percent to Oman's GDP. The Sultanate aims to raise this contribution to 5 percent by 2030 and to about 10 percent by 2040.

Oman's Tourism Boom: Latest Trends and Insights Revealed

• In 2023, the Ministry of Heritage and Tourism in Oman unveiled plans to launch more than 40 projects across the Sultanate for new adventure tourism projects, including cable cars, ziplines, and mountain trails, aiming to attract more adventure travelers from around the world. Replete with mountains, caves, valleys, deserts, and coastal regions, Oman’s natural diversity already attracts thrill-seeking travelers. The proposed adventure projects are expected to draw even more visitors, thereby boosting the country's tourism industry and economy. Some projects are already in progress, with several more slated to be added before 2025.
• In December 2023, Saudi Arabia and Oman forged a partnership to boost tourism in the Gulf region. The main aim of this partnership is to exert efforts toward sustainable tourism development, promote the region as a tourist destination, and boost trade and investment cooperation in tourism-related projects, supporting entrepreneurs participating in the industry.
• Oman’s Ministry of Heritage and Tourism is seeking to establish a tourism representative office in China as part of the ministry’s efforts to develop marketing plans that promote Oman’s tourism attractions through its global offices. The primary objective of opening this office is to strengthen relationships between local partners, including tourism companies and hotels, in the Chinese market.

IMARC's Insightful Expertise: Paving the Way for Industry Insights

At IMARC Services Private Limited , we specialize in helping companies identify their competitors, business strategies, and approaches to developing better opportunities in the Oman tourism industry. We aim to identify targeted customers within the tourism market and create robust marketing plans. We can provide information on competitors' innovations and government regulations and legislation. Additionally, we can assist companies in identifying tourism solutions best suited for their growth. Industries can position themselves for long-term success and growth by aligning with sustainable approaches.