Tourism will grow in economic importance in Oman

Significance

Since the end of COVID-19 travel restrictions, Oman has increased its efforts to boost its tourist sector, through the National Tourism Strategy (NTS) included within Vision 2040. Declining hydrocarbon reserves, global decarbonisation strategies and concerns over employment are important drivers in Oman’s plan to reduce its dependence on oil and gas revenues.

Impacts

• Policies to boost local employment in the sector will strengthen in the short term.
• Nationalisation of employment will add costs to businesses in the sector, threatening profitability.
• If Iran becomes directly involved in the ongoing Gaza war, security issues in the Gulf will severely curtail visitor numbers to Oman.