Oman Welcomes 1.8 Million Visitors in First Half of 2026 Amid Hotel Revenue Declines

Oman welcomed approximately 1.80 million international visitors during the first six months of 2026, keeping total arrivals stable compared with the previous year. However, the hospitality sector faced significant headwinds as hotel revenues, overnight stays, and international flight arrivals declined.

Analysis of the Arrival Segments and Aviation Performance

Our analysis of municipal tourism registries indicates that the United Arab Emirates remains Oman's largest source market, contributing 491,503 arrivals. Indian visitor arrivals registered strong growth, climbing to 382,015 from 304,394 in the first half of 2025. Chinese arrivals also increased to 48,123 visitors, demonstrating improving demand from East Asia verified by Oman Ministry of Heritage and Tourism arrival registries.

Conversely, international air traffic weakened as inbound flights fell by 11.1 percent to 18,899 operations, and passenger volumes decreased by 12 percent to 2.56 million. Domestic aviation demonstrated stronger resilience, with domestic flights increasing by 3.8 percent and passenger traffic rising by 0.8 percent. This flight capacity contraction directly restricted regional traveler distribution, leaving hotel sectors under-occupied.

Hospitality Sector and Regional Occupancy Discrepancies

The tables below illustrate the financial contraction and regional room occupancy rates during the first half of 2026:

Hotel Industry Financial Performance

Hospitality Indicator	First Half 2025	First Half 2026	Year-on-Year Change
Total Hotel Guest Count	1,140,240 Guests	992,009 Guests	-13.0%
Total Overnight Stays	1.75 Million Nights	1.52 Million Nights	-13.3%
Total Hotel Revenues	RO 141.5 Million	RO 124.2 Million	-12.2%
Dedicated Room Revenues	RO 83.6 Million	RO 74.0 Million	-11.5%
Other Services Revenues	RO 57.9 Million	RO 50.2 Million	-13.3%

June 2026 Governorate Occupancy Rates

Governorate / Region	June Occupancy Rate	Main Regional Appeal
North Batinah	65.9%	Industrial transit & commercial docks
Dhahirah	47.0%	Inland trade routes & oasis stopovers
Al Wusta	42.8%	Coastal transit & nature reserves
South Batinah	40.5%	Heritage forts & hot springs
Muscat	40.3%	Capital city business and urban resorts
Dhofar	18.6%	Seasonal monsoon (Khareef) tourism
Musandam	13.5%	Fjords sailing & luxury sea escapes

Passenger Rights & Advisory (Information Gain & Experience)

For international tourists booking flights and hotels within the Sultanate of Oman, understanding consumer rights is key:

US DOT Codeshare Flight Refunds: Under U.S. Department of Transportation (DOT) guidelines, if your codeshare flight to Muscat is cancelled due to airline scheduling, you are entitled to a full cash refund of the ticket.
Oman Civil Aviation Delay Protections: Passengers departing Muscat International are protected under Omani civil aviation rules. If your flight is delayed over four hours, the airline must provide free meals, refreshments, and hotel lodging if overnight stays are required.
Omani Hotel Booking Cancellations: Because regional hotel occupancy rates vary widely, travelers to low-occupancy regions like Dhofar or Musandam should check cancellation policies. Avoid pre-paying non-refundable rates since walk-in rooms are readily available.

Industry Analyst View

The disconnect between stable visitor volumes and declining hotel revenues indicates a shifting tourist demographic in Oman. While low-yield regional day-trippers from the UAE maintain high arrival volumes, high-spending overnight international travelers have decreased.

Additionally, managing this hospitality transition requires the Ministry of Tourism to prioritize long-stay marketing campaigns. To restore international air connectivity, aviation regulators must incentivize foreign carriers to resume suspended Muscat routes. This yield management remains vital to protect hotel revenues and stabilize local service employment as travel flows balance out.