Sustainable Tourism in Oman: A Vision 2040 Goal

Oman has welcomed a record-breaking 4 million visitors in 2023, with projections to grow the tourism sector's annual GDP contribution to 9.8% of the country's economy by 2034. With a targeted US$31 billion in investments by 2040, Oman's tourism sector presents a lucrative opportunity for real estate development. This is supported by infrastructure development, including airports and roads, as well as a substantial expansion of hospitality projects, resorts, serviced apartments, and vacation homes.

To meet the demands of this growing sector, Oman approved 19 Integrated Tourism licenses in 2023, committing US$11.37 billion to hospitality and real estate investments. These initiatives will introduce over 16,500 hotel rooms and 42,500 housing units nationwide, potentially boosting foreign investments and creating direct and indirect employment opportunities.

As Muscat transitions towards a more urban setting, the capital city is well-positioned to seize opportunities provided by a shift to community-oriented living, integrating quality-of-life elements consistent with global real estate trends. ITCs in Muscat, characterized by wide open spaces, healthy outdoor amenities, and essential 'Live, Work, Play' elements, currently command premium rental and sales prices. To tap into the global wellness tourism trend, ITC developers in Muscat can enhance their prospects by developing spa resorts, wellness retreats, and eco-friendly accommodations. Such well-planned communities offer a flexible and convenient lifestyle, attract higher premiums, and promote the holistic health of residents.

The growing demand for convenience, energy efficiency, and security can be achieved by integrating technology to transform living spaces and utilizing smart home innovations, including real-time alerts and remote monitoring capabilities, thus supporting the holistic health of residents.

Reflecting the emerging global trend for affordable housing, Oman's Ministry of Housing and Urban Planning has outlined initiatives to support robust growth and provide accessible and suitable housing for all income groups. These initiatives open doors for public-private partnerships and align with Oman Vision 2040 goals, promoting familial and community stability while ensuring inclusivity and social sustainability in the real estate market.

Alongside the development of ITCs, recent urban transformations in Muscat demonstrate a clear focus on preserving heritage and fostering economic development to attract tourists interested in cultural experiences. The growing demand for heritage tourism accommodations and venues plays a significant role in shaping the real estate landscape.