Hospitality sector sees surge in revenues, guests

National Centre for Statistics and Information (NCSI) has released data indicating robust growth in the hospitality sector's performance in Oman. Revenues of 35 star hotels saw an increase of 18%, reaching Ro52.38mn at the end of February 2024, from Ro44.41mn reported in the same period in 2023.

This revenue growth aligns with an 18.2% surge in overall guest numbers, which climbed to 433,856 at the end of February 2024 from 366,969 recorded in the same period in 2023. Hotel occupancy witnessed a healthy growth of 11.2%.

The NCSI data reflects a countrywide increase in hotel guests across various demographics. Omani guests rose 5.7% to 141,335, while the influx of visitors from GCC states grew 13.6% to 25,607. European guest figures showed an increase of 28.7% to 153,422 visitors.

Guests from the Americas totalled 14,829, with visitors from the African continent recording a 9.7% growth to 2,029 guests. Asian visitor numbers rose 29.5% to 54,562, while guests from Oceania stood at 6,347.

According to a report by BMI, a Fitch Solutions Company, arrivals in Oman are set to grow 24.7% year-on-year in 2024 to a total of 5.3mn.

The 2024 arrivals will be a new high, building on the most recent historic peak of 4mn visitors in 2023, BMI stated.

‘Arrivals will continue to expand over the remainder of our medium-term forecast period (2024-2028) to reach a projected 10.8mn by 2028.’

The Ministry of Heritage and Tourism has an ambitious goal to attract 11mn tourists annually by 2040, as part of the broader Oman Vision 2040 objectives.

‘Our forecasted arrivals growth trajectory for Oman indicates that the market will achieve this target (of 11mn),’ stated BMI.

Arrivals from the GCC states were around 1.6mn in 2023, followed by 610,000 visitors from India. Germany came next with 150,000, while Mainland China accounted for 118,000 arrivals.

‘We forecast Oman’s arrivals growth to be robust over the medium term, growing by an annual average of 20.4% y-o-y between 2024-2028, to reach 10.8mn arrivals in 2028.

‘Increased arrivals over the medium term will be driven by key source markets across the GCC, as well as Asia-pacific and European markets.’