Overview
Tourism currently contributes around 2.8 percent of Oman’s GDP with approximately 1.4 million international visitors recorded pre-COVID. The sector is a cornerstone of diversification under Vision 2040, which targets 10 million annual visitors and a GDP share exceeding 10 percent. Key attractions include the Al Hajar Mountains, Wahiba Sands, Musandam fjords, and UNESCO-listed Bahla Fort.
The value chain for Oman’s tourism sector encompasses upstream inputs, midstream processing and logistics, and downstream distribution and export channels. Mapping this chain reveals critical nodes where value addition can be maximised and leakage to imports can be reduced.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Annual Visitors | ~1.4M (pre-COVID) | 10M by 2040 |
| GDP Contribution | ~2.8% | 10%+ by 2040 |
| Hotel Rooms | ~22,000 | 50,000+ by 2040 |
| Omanisation Rate | ~42% | 60%+ by 2040 |
| Direct Employment | ~45,000 | 500,000 by 2040 |
Analysis
The tourism value chain in Oman is characterised by significant upstream concentration, with Ministry of Heritage and Tourism, Oman Tourism Development Co., Muriya, Kempinski, Anantara dominating primary production. Midstream processing and logistics represent the largest opportunity for value capture, as much of the raw output is currently exported with minimal transformation. Investment of USD 8 billion in planned projects signals strong commitment to building out downstream capacity. The sector employs ~45,000 direct workers, though value-chain deepening could multiply employment effects significantly.
Challenges
Limited airlift capacity, seasonal demand concentration, shortage of mid-range accommodation, low brand awareness compared to Dubai and Abu Dhabi, and infrastructure gaps in remote tourism sites.
Opportunities
Eco-tourism and adventure tourism niches, cruise tourism via Muscat port expansion, medical tourism leveraging new hospital capacity, cultural heritage trails, and MICE (meetings/incentives/conferences) segment growth.
Vision 2040 Targets
Reach 10 million visitors annually; increase GDP share to over 10 percent; develop 30,000+ additional hotel rooms; create 500,000 tourism-related jobs; achieve 60 percent Omanisation in hospitality.