Oman’s travel and tourism industry is set to outpace the nation’s broader economy over the next decade, according to recent findings from the World Travel & Tourism Council (WTTC). Driven by an expected compound annual growth rate (CAGR) of 5.3% between 2026 and 2036—compared to just 2.1% for the overall economy—the sector’s GDP contribution is projected to rise from RO3bn (7.2% of GDP) in 2025 to RO4.6bn (8.7% of GDP) by 2036.

While the sector reached a strong milestone in 2025 by outperforming 2019 levels by 25.7%, ongoing geopolitical conflicts across the Middle East are expected to cause a temporary 9.6% dip in 2026, bringing revenues down to RO2.8bn. Despite this near-term slowdown, performance will remain well above pre-pandemic baselines, positioning the market for rapid long-term recovery.

Foreign visitor spending will act as the primary engine for this expansion, climbing at a 7.2% annual rate to reach RO2.5bn by 2036. By contrast, domestic travel spending will see a steadier 1.6% CAGR, reaching RO1.5bn. International travelers already accounted for nearly 54% of total tourism expenditure in 2025, with leisure travel making up two-thirds of all spending. The primary international source markets driving this demand were the UAE, India, the UK, Germany, and Bahrain.

This economic momentum will significantly boost local employment, creating 62,800 new jobs over the ten-year period and elevating total tourism workforce headcount from 195,800 in 2025 to 255,400 by 2036. Beyond direct output and hiring, the industry also serves as a critical revenue source for the state, having generated RO190mn in tax contributions in 2024 alone.

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