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Demand from Europe, Oceania and GCC delivers record occupancy in premium sector
Bolstered by international campaigns and rising demand from Europe, the GCC and Oceania, Oman’s hospitality sector is enjoying a record-breaking year.
Revenues across the three- to five-star hotel segment reached OMR 141.21 million (US$367 million) in the first half of 2025, an 18.2% increase from last year, according to data from Oman’s National Centre for Statistics Information (NCSI).
International demand has driven half-year guest numbers to an all-time high, exceeding 1.14 million, a 9.2% increase compared to 2024. Occupancy rates also reached new heights, averaging 54.7% for January to June, up from 47.8% a year earlier.
Europe leads the way in total guests, contributing 40% of arrivals with a 20.1% jump over last year, its highest ever for a half-year period.
But it was travellers from Oceania and Africa that saw the steepest gains, with visitor numbers up 57.9% and 40.6% respectively, both setting fresh half-year records.
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Arrivals also increased from the Americas (+22.3%), GCC countries (+10.6%) and Asia (+2.4%). Only non-GCC Arab markets saw a slight dip, down 1.4% to 48,453.
Tourism minister Salim bin Mohammed Al Mahrouqi credited the performance to “aggressive campaigns in the last two years” alongside investment in Oman’s cultural, heritage and adventure offerings.
This includes strengthened promotions in Europe, Asia and Oceania, supported by new regional marketing offices.
Looking ahead to H2 2025
Momentum is expected to carry into the second half of 2025. The Khareef season has already boosted Salalah Airport traffic by 5% year-on-year, handling more than 288,000 passengers between 21 June and 3 August.
Winter should bring further gains, with Celestyal Cruises deploying two ships to Oman and Aroya Cruises launching its Arabian Gulf itineraries with stops in Muscat, Khasab and Salalah.
Air connectivity has grown as well, with new European routes launching this summer, such as Muscat–Amsterdam, while Oman Air has also partnered with TUI to introduce Oman Air Holidays, a digital booking platform that promotes Oman as a destination and supports inbound tourism by offering integrated travel packages.
The sultanate has committed US$31 billion to tourism development through 2040, of which US$5.9 billion is dedicated to new resorts and projects.
Oman already counts luxury properties such as the Mandarin Oriental Muscat and St Regis Al Mouj, with more than 40 new hotels in the pipeline, including openings from Anantara and Nobu.
By 2030, Oman aims to welcome six million international tourists annually — nearly double current levels — and reach 12 million by 2040.
For more information, visit ncsi.gov.om