Revenues of Oman’s hotels surge, tourists to reach 3.5 million in ’23

Robust growth, increased occupancy rates, and record tourist arrivals
Revenues of Oman’s hotels surge, tourists to reach 3.5 million in ’23
In October alone, the occupancy rate reached 53.7 percent, marking a 9.9 percent increase

Oman’s 3- to 5-star hotels witnessed a remarkable 27.8 percent surge in revenues, totaling OMR168.328 million during the first ten months of 2023. This impressive growth was reported by the National Centre for Statistics and Information (NCSI). It reflects a flourishing hospitality sector in the sultanate.

Occupancy rates soar

Accompanying the surge in revenues was a substantial increase in Oman’s average hotel occupancy rate. In October alone, the occupancy rate reached 53.7 percent, marking a 9.9 percent increase compared to October 2022. This increase reflects a robust demand for hotels, underscoring the attractiveness of Oman as a travel destination.

Moreover, the report revealed that 2.9 million tourists visited Oman by the end of September 2023. Meanwhile, 6.2 million tourists departed during the same period. This surge in tourist activity aligns with Oman’s growing reputation as a preferred destination for leisure and commercial travelers.

Tourist projections

Fitch Solutions Company’s BMI analysis anticipates that Oman will welcome 3.5 million international tourists by the end of 2023. This marks a substantial 20.8 percent increase from the previous year. The report suggests that this growth trajectory is likely to continue.  The report projects an average annual tourist inflow growth of 7.4 percent from 2023 to 2027.

Driving forces

The growth in Oman’s tourism sector is attributed to a combination of leisure and commercial tourism. It is propelled by the stimulation of domestic investments due to high oil prices. Hence, this economic momentum is contributing to the country’s appeal as a vibrant and dynamic travel destination.

According to the report, the Middle East is expected to be the primary source of tourists for Oman in 2023. The Middle East alone contributes an estimated 1.5 million visitors to the Sultanate. This regional dominance further solidifies Oman’s position as a key player in the global tourism landscape.

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Global recognition

According to the United Nations World Tourism Organization (UNWTO), Oman was among the top 20 best-performing destinations in the world. Thus, it ranked 18th in the world for the first seven months of 2023.

“According to data from UNWTO, Oman is among the best-performing countries in terms of the number of tourists during the first half of this year. Existing and upcoming promotion plans promise record results,” H.E. Salim bin Mohammed al Mahrouqi, Minister of Heritage and Tourism, stated.

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