Omani Hotels Discuss Crisis Impact and Recovery

In the first half of 2026, the hotel sector in Muscat experienced a strong start in January and February, with excellent financial performance. However, geopolitical tensions and regional crises led to a significant decline in March, marked by widespread booking cancellations, decreased air traffic, and falling room rates. This crisis caused a deterioration in revenues and profits for the four largest companies, with the Shadhi Muscat Hotel seeing its revenue drop by approximately 20% to 3.91 million Omani rials and the company losing most of its profits. Meanwhile, Gulf Hotels, Oman Hotels, and Ober Hotels reported losses despite efforts to control costs. Occupancy rates and room prices also declined markedly. Nonetheless, some indicators suggest an early local recovery and increased visits by citizens, alongside initiatives by companies to promote and improve tourism destinations and develop new projects. However, ongoing tensions continue to cast a cautious outlook for a faster recovery.