Oman is working to grow its tourist industry as part of its Vision 2040 to diversify its economy and rely less on oil money.
Oman aims to diversify its economy further from hydrocarbons by attracting an extra $10 billion in international investments to projects in the sultanate’s tourism industry.
Since the pandemic ended, the private sector has already invested $10 billion in the country to build new hotels and integrated tourism complexes (ITCs), which will open in 2025. Salim Al Mahrouqi, Minister of Heritage and Tourism, stated that Muscat (Oman’s capital) is currently in negotiations with investors to raise a comparable sum to invest over the next three to four years in hospitality projects.
Mr AI Mahrougi stated that since the projects are either negotiated or approved, they might be able to get an equal amount, even if it is too early now. They want to keep attracting foreign investment, and Russia is another possible foreign direct investment (FDI) option. They are also in contact with reputable Egyptian developers.
The Sultanate is building new museums, a botanical park that will be ready to the public by the end of the year, Unesco World Heritage sites, and a marine museum in the city of Sur to show the nation’s rich maritime history.
Oman is working to grow its tourist industry as part of its Vision 2040 to diversify its economy and rely less on oil money. Oman (a smaller crude oil producer compared to its Gulf neighbors) is more vulnerable to oil price changes and was severely impacted by the coronavirus outbreak. The country has recovered well, helped by the rapid growth in its tourism industry.
The country broke all previous records in 2019 with 15 million local visitors and 4 million foreign visitors in 2024. The sultanate’s primary tourist markets were the United Arab Emirates (UAE), the second-largest economy in the Arab world, India, Germany, and other Western European nations.
The ministry states that Oman hopes to surpass that figure this year and reach 4.5 million foreign visitors by the end of 2025. The country will focus on new source markets like China, South Asia, and Russia to meet the 2025 forecast, with plans to triple its marketing expenditure.
They mentioned that they are focusing on doing impressive campaigns in Moscow, Beijing, and Singapore to distinguish them from the others by focusing on their tradition, culture, wildlife, and adventure travel options.
It will focus on wealthy and environmentally conscious tourists to ensure sustainable growth.
They are looking for prospective markets with significant financial impact but balance quality and quantity and weigh the effects on infrastructure and natural resources against the numbers.
Sustainability and in-country value are crucial so the tourism advantages are distributed across the community without an undue burden on the environment.
According to the ministry, the tourism industry in Oman will increase from 2.7% of the country’s GDP in 2024 to 3% this year.
The government is exploring more options to increase air links with other countries to carry more visitors amid ongoing restructuring at its national carrier, Oman Air.
They added that they are looking for new locations, citing more charter flights and alliances with Gulf airlines.
Developing non-oil industries like tourism and aviation increases employment opportunities for Omani citizens.
With more Omani citizens enrolling in training programs, there is potential for employment in the tourism industry. He stated that more Omani people are already in charge of the industry and that we would like to see more Omani people in general manager positions operating many hotels.
There are already about 20,000 Omani workers in the tourism industry, and the goal is to gradually increase the number of jobs available to Omani citizens each year by 4,000 to 6,000, he continued. Oman’s current population, based on Worldometer statistics, is approximately 5.4 million.
