Oman tourism gets RO2.4bn investment boost
Muscat – The tourism sector has witnessed remarkable growth with investments reaching approximately RO2.4bn by the end of 2024. As part of its economic diversification strategy, the government aims to raise the sector's contribution to 5.9% of the nation's GDP by 2040.
Progress was discussed during the 24th dialogue session on Tuesday hosted by Omani Economic Association, where industry leaders examined opportunities, challenges and strategies for sustainable tourism development.
H E Azzan bin Qasim al Busaidi, Undersecretary for Tourism in Ministry of Heritage and Tourism, said the sector has fully recovered from the effects of COVID-19 with key tourism indicators now surpassing pre-pandemic levels.
He informed that Oman now has around 1,000 hotel facilities, signalling robust sector expansion. However, financial challenges persist for private tourism enterprises due to the lasting impact of the pandemic. H E Busaidi also noted the ministry's efforts to regulate over 1,500 unlicensed accommodation facilities currently operating in the market.
In a move to attract more international visitors, Oman has reopened its tourism representative office in China, tapping into a rapidly expanding market. Several major tourism development projects are also underway, including initiatives in Jabal Abyad, Ras al Hadd, Muttrah corniche, the sand dunes of North Sharqiyah and South Sharqiyah, and Jabal Akhdar.
Dr Khalid bin Saeed al Amri, Chairman of Omani Economic Association, emphasised tourism's growing contribution to national revenue and its central role in economic diversification.
Ministry of Heritage and Tourism has set ambitious goals for 2025, including increasing tourism's contribution to the GDP to 2.75% at constant prices, attracting RO3bn in investments between 2021 and 2025, and expanding Oman's hotel capacity to 33,000 rooms by the end of 2025.
The dialogue reaffirmed the importance of strong public-private partnership in driving tourism growth. By addressing challenges and leveraging new opportunities, Oman aims to position itself as a leading global tourist destination while supporting sustainable economic growth and increasing international visitor numbers.
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