Oman's Ministry of Heritage and Tourism has issued Ministerial Decision No. 1152/2/1/141/2026 implementing the Executive Regulation of the Tourism Law (the Regulation), made pursuant to Royal Decree 69/2023. The Regulation came into force on 17 April 2026 and repeals the previous regulations under Tourism Law. Those already licensed must bring their operations into compliance within 6 months of it coming into force, by approximately October 2026. This Regulation will directly affect entities that own or manage a hotel, operate a restaurant or leisure facility, hold a usufruct over government tourist land or are considering entering the Omani tourism market.
Licensing
No person may practise any tourism activity or operate a tourist or hotel establishment without a licence from the Ministry. The Regulation provides for six licence categories: tourist and hotel establishments; travel and tourism offices; tourist guidance; adventure tourism; high art performance groups; and business tourism. Each category carries its own eligibility requirements, procedures and fees.
Licence to operate or manage a tourist or hotel establishment
This is the licence of most relevance to hotel owners and hospitality investors. Before commencing operations, applicants must obtain preliminary approval from the Ministry. The land must carry the correct designated use and the Ministry must decide within 60 days. If the required documents are not submitted within 6 months, the application is deemed cancelled. Once preliminary approval is granted, maps and technical plans must be approved within one year.
Tourist and hotel establishments are classified into levels under the Regulation. Hotels follow the standard 1–5-star system, whilst hotel apartments are classified as either 'luxury' or 'standard'. Other establishment types have a single classification tier, for example, Rest Houses are designated 1 star and Lodges as 'standard'. Establishments may apply for reclassification at any time.
Ongoing compliance obligations
Once licensed, establishments must appoint a responsible manager, display their licence and classification prominently, and maintain an electronic link with the Ministry, the Royal Oman Police, and relevant competent entities. Annually, establishments must submit a tourism fee declaration within three months of the financial year end and audited accounts and financial statements to the Ministry within two months of the financial year end.
Tourist and hotel establishments fees
Tourist and hotel establishments must collect two fees from customers: a tourism fee of 4% on all facilities, remitted to the Ministry quarterly with auditor-certified statements; and a service charge of 8% on services provided, distributed directly to employees in cash with a detailed statement provided to the Ministry. Failure to remit the tourism fee for five consecutive months is a ground for licence revocation. Failure to distribute the service charge carries a fine of OMR 1,000 to OMR 3,000, doubled on repetition.
Restaurants and cafés
Restaurants and cafés are automatically classified as tourist establishments in four cases: if located in tourist areas or sites; if located on government tourist land; if located within a hotel establishment; or if managed through a franchise agreement. Those that do not fall within any of these categories may apply to the Ministry voluntarily for classification. The franchise agreement trigger is broad as it applies regardless of the location of the restaurant or café. Any food and beverage concept operated under a franchise agreement is automatically a classified tourist establishment, without exception.
Classified restaurants and cafés must obtain a tourism classification certificate before commencing operations. The certificate is valid for 3 years, renewable for further 3-year periods, with renewal applications submitted at least 60 days before expiry. The fee is OMR 200 per 3-year period. Operating without a certificate carries a fine of OMR 500. As classified tourist establishments, the same 4% and 8% fee obligations (as above) and penalties apply.
Other licences
The Regulation provides for travel and tourism office, tourist guidance, adventure tourism, high art performance group and business tourism licences, each with its own eligibility requirements, conditions, and fees. Key obligations for travel and tourism offices include insuring tourists on all organised trips and only employing Ministry licensed tourist guides. Foreign tourism companies are subject to the same requirements.
Usufruct rights over tourist areas and government tourist lands
Where an investor or developer holds or is seeking a right to use, operate or develop government tourist land or a tourist area, that right is granted by way of a usufruct contract with the Ministry. The Regulation now comprehensively codifies this framework. The contract must cover permitted use, fees, duration, renewal, development obligations and a financial guarantee required. Any change to the investing entity's structure or ownership requires prior Ministry approval and all outstanding financial obligations must be settled before any assignment.
The Ministry has broad termination rights including where: the project is not implemented on time; works are suspended for more than 90 days without justification; the land is used for unauthorised purposes; the usufruct was obtained through fraud; or the usufructuary becomes bankrupt or is liquidated.
Administrative penalties
The Regulation imposes a range of administrative penalties for non-compliance. Fines range from OMR 500 to OMR 6,000, with many doubled upon repeat breach and violations may also attract licence suspension of up to 3 months. Relevant violations include operating without a licence, misrepresenting an establishment's classification and employing unlicensed guides. Licences may also be revoked for more serious or persistent breaches, including failure to remit tourism fees for 5 consecutive months, failure to pay fines for over 6 months, assigning the licence without Ministry approval, the responsible manager's position being vacant for more than 60 days, or the business being suspended for 6 consecutive months.
Conclusion
The Regulation is broad in its reach but clear in its requirements as the timelines are fixed, the penalties are published and the classification framework leaves little room for ambiguity. It is wide-ranging and it catches operators who may not have previously considered themselves part of the tourism sector, for example franchise restaurant operators. The six-month transition window for existing operators expires in October 2026. Entities that are seeking to obtain or renew a licence, caught by the tourism classification regime, investing in a tourism project or reviewing their ongoing compliance position should obtain advice as soon as possible. Please get in touch with our international real estate team to discuss how the Regulation may affect your business.
