Tourism Potential
Oman possesses extraordinary tourism assets: dramatic mountain landscapes (Jebel Akhdar, Jebel Shams), pristine coastline spanning over 3,000 kilometres, desert wilderness (Wahiba Sands), rich cultural heritage (Nizwa Fort, Bahla, UNESCO sites), unique wildlife (turtle nesting beaches, whale watching, Arabian oryx), the monsoon-transformed landscapes of Dhofar, and a reputation for safety, hospitality, and authenticity that distinguishes it from more commercialised Gulf destinations. The tourism ministry targets 11.7 million visitors by 2040, up from approximately 3.5 million pre-pandemic.
Infrastructure Deficits
Despite these assets, tourism infrastructure lags significantly. Hotel room supply in Muscat is limited and concentrated in the luxury segment, with insufficient mid-range and budget options. Secondary destinations (Nizwa, Sur, Salalah, Musandam) have even more limited accommodation. Tourism transport infrastructure – domestic flights, quality road access to attractions, public transit – is underdeveloped. Activity and experience infrastructure (guides, tour operators, adventure tourism facilities, cultural interpretation centres) is nascent. The gap between what visitors want to experience and what the infrastructure supports is substantial.
Competitive Context
Oman competes for tourists with the UAE (Dubai’s marketing machine and world-class infrastructure), Saudi Arabia (massive tourism investment in Red Sea, NEOM, AlUla, and Diriyah), and increasingly non-Gulf destinations accessible from key source markets. The UAE attracts over 20 million international visitors annually to Dubai alone. Saudi Arabia has committed over USD 800 billion to tourism development. Oman’s advantage – authenticity, natural beauty, cultural depth – is real but cannot compensate for basic infrastructure deficits in accommodation, accessibility, and visitor services.
Investment Priorities
Closing the tourism infrastructure gap requires: accelerating hotel development in the mid-range segment through investment incentives and simplified licensing; developing integrated tourism destinations that combine accommodation, activities, and dining; improving domestic air connectivity between Muscat and secondary destinations; investing in experience infrastructure (interpretation centres, guided trail networks, maritime tourism facilities); training a hospitality workforce through dedicated education programmes; and creating a tourism investment framework that attracts international hotel brands and tour operators. The return on tourism infrastructure investment is high, but the upfront capital and planning horizon are significant.