Tourism sector poised for growth until 2028 in Oman

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Oman's tourism sector is set for giant strides, with projections indicating a significant increase in visitor numbers until 2028, according to international market research company Fitch Solutions.

The forecast is in line with Oman's aim to raise the growth rate in the tourism sector to 5 per cent by 2030 and to 10 per cent by 2040. Key indicators underscore the sector’s upward trajectory, with a notable 11.5 per cent growth rate and a surge in hotel occupancy rates reaching 49 per cent. The influx of over 2 million tourists and 14 million passengers passing through airports further highlights Oman’s growing appeal on the global tourism stage.

Fitch Solutions forecasts continued growth in tourist numbers, with the Middle East leading the charge, followed by Asian and European markets. The report by IBM Market Research, affiliated with Fitch Solutions, paints a promising picture, citing last year’s recovery in tourism flows as a strong foundation for sustained growth in the coming years.

This optimistic prospects of the tourism sector in the Sultanate of Oman comes as an extension of the positive expectations issued by Fitch Solutions in its report last year, in which it indicated that growth expectations in the tourism sector in the medium and long term are enhanced by the progress of economic diversification efforts, and the ambitious targets of Oman’s future vision 2040. The sector is also finding great support from an increasing focus on digital marketing and promotion, especially in the markets targeted in tourism promotion plans.

The number of visitors to the Sultanate of Oman increased to about 3 million visitors in 2023, according to the statistical indicators of the Ministry of Heritage and Tourism. The recovery plan launched by the ministry has succeeded in putting the sector back to the growth track.

The ministry is currently implementing its tourism development plan, which includes enhancing investment, facilitating project financing, expanding cultural and geological tourism programmes, and offering new tourism products especially in leisure and adventure tourism. The ministry said it aims to develop adventure tourism through 43 projects to be implemented by the private sector. These projects aim to exploit the unique selling proposition of the Sultanate of Oman, which is the unique diversity of terrain of seas, mountains, valleys and other natural elements.

Among the planned projects are cable cars in the Omani Botanical Garden, ziplines in various locations, including Wadi Darbat in Dhofar Governorate, a suspension bridge in Wadi Shaab in the Wilayat of Sur and mountain trekking trails. The successful opening of the zipline project in Musandam Governorate is an example of growing public-private partnership in the sector.

Investment in new tourism projects is also gaining pace. The most recent projects are the $4 billion Trump Resort in Yiti. The Omran Group also entered into a partnership with Dar Al Arkan, the leading Saudi real estate company, to develop ‘AIDA’ a premium, mixed-use project nestled within the masterplan of Yiti Integrated Tourism Development at cost of $1.5 billion.