Oil and natural gas has been the major engine of economic growth in Oman. Over dependence and emphasis on oil has somehow crippled the development of other sectors in the past. At such a time when Oman realizes the depletion of its natural resources to certain extent and the presence of all pervasive recession -causing the lowest ever crude oil price, pondering on alternatives is an expected move. While thinking on the probable alternatives that could fuel the economic growth in the post- oil- Omani- economy, Tourism emerges as one of the most attractive alternatives on which Oman could rest. Following a desk research approach this study reviews secondary data which are then subjected to three major tools of strategic analysis viz. PESTEL framework, Porter’s Diamond Model, and SWOT. The analysis reveals that Oman is at cross roads where there is a need to look for areas which could contribute to her economic development and growth. Tourism and real estate are probable sectors which can help mitigating the problem. There is a need for a strong private sector, skilled human resources, and competencies to keep abreast with the technological progress. To capitalize upon tourism, Oman needs to build a strong repository of product/service offers that appeal to both foreign and domestic tourists. Among the major strengths are Oman’s political stability and leverage created by Oil sector. Lowly developed non-oil sectors; absence of a strong private sector; and scanty tourism infrastructure are the major weaknesses. The opportunities such as increasing potential global visitors; job opportunities for locals; and a chance to establish tourism as the main driver of growth and development in post- oil-Omani-economy are too be cashed in view of the most potential threats viz. competition, diminishing oil revenues, and global recession. Success will depend upon how Oman ventures amid the forces of external and internal environment.