Oman Hotel Revenues Fall 11.7% to OMR 171 Million as European Guest Numbers Drop 30.7%

Occupancy at three- to five-star hotels declines to 46.5% during the first nine months of 2026, while domestic demand grows despite a 19.9% fall in GCC guests, as the market prepares for additional hotel supply.

Revenues at three- to five-star hotels in Oman declined by 11.7% during the first nine months of 2026, reaching OMR 171.1 million (approximately USD 445 million), compared with OMR 193.8 million during the same period in 2025, representing a decrease of OMR 22.7 million.

Preliminary data released by the National Centre for Statistics and Information (NCSI) on November 8 showed that the number of guests staying at these hotels fell by 10.4% to approximately 1.51 million, compared with 1.69 million a year earlier. Meanwhile, the average occupancy rate declined from 52.7% to 46.5%.

The European market recorded one of the sharpest declines, with the number of European hotel guests falling by 30.7%, from 417,500 to 289,200, a decrease of approximately 128,000 guests.

Guests from Gulf Cooperation Council (GCC) countries declined by 19.9% to 132,800, compared with 165,800 during the corresponding period.

Guest numbers from other Arab countries also fell by 8.1% to 69,500, while arrivals from the Americas decreased by 27.5% to 40,100.

In contrast, the number of Omani hotel guests increased by 3.4% to 664,100, while Asian guest numbers rose by 2.9% to 249,700.

These figures highlight contrasting trends across source markets, with domestic demand continuing to support the hospitality sector but failing to fully offset declines in several international markets.

The downturn comes as Oman continues to expand its hotel accommodation supply.

According to Cavendish Maxwell's hospitality market performance report for the first half of 2026, approximately 400 new hotel rooms entered the market during the first six months of the year.

The consultancy projected that another 700 rooms would be added during the second half, bringing the country's total hotel inventory to approximately 40,800 rooms by the end of 2026.

The report also identified plans to introduce an additional 1,500 rooms in 2027 and 1,600 rooms in 2028, subject to project completion schedules.

Cavendish Maxwell attributed weaker performance during the first half of 2026 partly to regional travel disruptions and reduced international air connectivity, noting that a recovery in visitor demand would be essential to absorbing the additional hotel capacity.

Oman's latest hospitality figures highlight the distinction between expanding hotel capacity and generating sufficient demand to support it.

With occupancy declining to 46.5%, recovering international guest numbers, particularly from Europe and GCC countries, will be an important indicator of hotel performance and the commercial viability of upcoming developments.

The nine-month figures specifically reflect the performance of three- to five-star hotels and should not be interpreted as a comprehensive measure of all accommodation establishments or total international tourist arrivals to Oman.