Scale has become something of a competitive sport across the Middle East. One only has to thing of Saudi Arabia’s sprawling giga-projects, Qatar’s transformation of Lusail and the UAE’s appetite for record-breaking development to see how size and spectacle are a big part of the strategy to countries in the region.
But it seems Oman is playing a different game, trading the scale game in for one that focuses on the appeal of scenic natural beauty, something it has in abundance.
Speaking exclusively to Hospitality Investor, Amir Golbarg, chief operating officer for Minor Hotels Middle East & Africa noted: “Oman’s particular appeal is the distinctive combination of authentic culture, wild landscapes, low-density travel and understated luxury,” noting that this aligns with the needs of guests who are looking for a strong sense of place, genuine heritage and the opportunity to experience the soul of the Middle East in a peaceful and relatively undiscovered environment.
Proven demand
Looking at the numbers, there’s a positive story being told. Savills data supplied to Hospitality Investor shows Oman ended 2025 with an ADR of $148.85, up 9.1 per cent year-on-year. Occupancy rose 12.3 per cent to 59.4 per cent, with revpar climbing 22.4 per cent to $88.43.
Muscat performed particularly strongly, with 2025 ADR up 11.8 per cent to $135.23 and occupancy rising 11.9 per cent to 63.2 per cent, pushing RevPAR up 25.1 per cent to $85.43. For Salalah, ADR increased 5.8 per cent to $154.36, occupancy was up 14.5 per cent at 59 per cent and RevPAR climbed 21.1 per cent to $91.11.
Minor's own properties followed that trajectory. Golbarg said Anantara Al Jabal Al Akhdar Resort and Al Baleed Resort Salalah by Anantara delivered “very strong results” across rates, occupancy and guest demand during 2025. The operator has since introduced its Tivoli brand to Muscat and is developing another Anantara at Bandar Al Khairan, around 45 minutes from the capital, in a coastal bay surrounded by mountains.
Against all odds
While it may all seem like sunshine and rainbows, some complications exist, notably remoteness, limited airlift and the need to protect natural environments, all of which can make development complex. Paradoxically though, these attributes are also the ones capable of supporting high-end rates and creating destinations that are difficult to replicate.
Additionally, Savills figures for the first half of 2026 provide a reminder that the trajectory will not always be straightforward. Amid wider regional instability, while Oman ADR remained 2.6 per cent higher at $149.95 for the year to June, occupancy was down 15.1 per cent at 48.7 per cent and revpar fell 13 per cent to $72.98. The declines were sharper in Salalah where ADR was up 8.7 per cent to $155.88 but occupancy fell 28.4 per cent to 39 per cent and revpar dropped 22.2 per cent to $60.83. Muscat occupancy declined 14.3 per cent and revpar 10.1 per cent over the same period.
But Golbarg says the early performance of Tivoli La Vie Muscat Hotel despite wider regional instability is another source of confidence and demonstrates the ability of the country to support more than remote luxury resorts. This is as Minor sees opportunities in urban lifestyle hotels, branded residences, wellness retreats, extended-stay concepts, golf hospitality and smaller nature-led properties.
Oman’s government also has ambitious plans. Under Oman Vision 2040, tourism is one of the country's economic diversification priorities and the Ministry of Heritage and Tourism is targeting 12 million visitors by 2040, with integrated tourism complexes, luxury hospitality and niche segments including adventure tourism among the areas earmarked for development. According to Oman News Agency, around 3.9 million visitors arrived in 2025, while tourism investments during the country's Tenth Five-Year Plan were estimated at OMR2.6 billion upon completion of all stages.
Oman is not alone in chasing leisure demand. Saudi Arabia is building tourism destinations from the Red Sea to its mountain regions, while the UAE has decades of infrastructure, air connectivity and international brand recognition under its belt. All of this means that for Oman, trying to compete head-on may be difficult. However, operators say it doesn’t have to.
Big plans
TUI Group's Peter Krueger told Hospitality Investor the company was building out newer holiday destinations including Zanzibar and Oman as its product strategy shifts beyond traditional mass tourism.
“My vision is that in five years we will have a lot more different products away from mass tourism in undiscovered destinations,” he said.
Minor’s Golbarg adds: “Oman has spectacular scenery and cultural depth without feeling overdeveloped. It is tranquil, welcoming and highly immersive, which makes it particularly attractive to experienced travellers looking for something beyond a more conventional city or resort holiday.”
Within the country itself, there’s a range of experiences that have the potential for multi-stop trips which can increase length of stay and spread tourism spend. A guest could start in Muscat for culture and dining; travel into the mountains for adventure and wellness; then finish in Salalah for beaches and heritage.
“This ability to combine city, mountain and beach within one country is a considerable advantage,” Golbarg says.
IHG has identified the opportunity as far back as 2020 when it signed Hotel Indigo Jabal Al Akhdar. At the time, Pascal Gauvin, then IHG managing director for India, Middle East & Africa said the group remained committed to growing its Oman footprint.
“Oman has always been known for its hospitality and we remain committed to meaningfully grow our footprint here and bring more hotels and brands to key locations in the country to offer world-class hospitality to guests,” he had said.
Mark Willis, CEO, Accor Middle East & Africa had likewise called Oman a “priority market” when announcing the debut of Novotel in the Sultanate earlier that year.
A balancing act
However, accessibility and international connectivity could be a constraint on growth. While Oman has invested significantly in transport infrastructure, opening Muscat International Airport's new terminal with capacity for 20 million passengers in 2018 and potential expansion to 48 million, Golbarg said the frequency and breadth of direct routes remain below those available through some of the Middle East's larger aviation hubs.
“Where direct services are available, we see a clear positive impact on bookings, length of stay and the ability to attract new source markets,” he said, identifying stronger frequencies from the UK, France and Germany, additional Italian connections and longer-term, improved access from China, the US and Australia as opportunities.
“Connectivity is one of the most important factors in determining the speed at which the market can grow,” he added.
And while the country has continued investing in roads and examining ways its network of ports can support tourism, access can be an issue outside major cities, a big consideration when some of Oman's most attractive prospective hotel locations could be several hours by road from Muscat or Salalah while certain mountain areas require four-wheel-drive vehicles.
For an operator, this could mean more complicated logistics, staffing challenges and higher development costs.
“The challenge is to make these destinations more accessible without compromising their untouched character,” Golbarg says.
That means Oman has to pull off a balancing act. Building more hotels, roads and air routes could make the destination easier to sell and invest in. However, too much development in the wrong locations has the risk of spoiling the sense of space, nature and discovery that differentiates the country’s offer from some of its neighbours.
“Sustainability must be at the heart of development because Oman’s natural environment is one of its greatest competitive advantages,” Golbarg says.
What’s clear from operators is that the Gulf doesn’t need another destination selling the same luxury experience behind different hotel flags.
“Oman should not attempt to imitate other destinations in the region,” Golbarg says, describing Oman as retaining an “if you know, you know” quality and argues that more coordinated international marketing is needed.
Its greatest opportunity is to grow, improve accessibility without sacrificing the landscapes, culture and sense of discovery that make investors, operators and guests alike willing to spend the cash.
Positively, Golbarg expects to see more upscale and lifestyle hotels, resorts, branded residences, glamping and nature-led concepts over the next five years, alongside better infrastructure and more destinations beyond the established tourism circuit.