Tourism downturn sparks hotel investment in Egypt

Ever since a Russian plane crashed in Egypt's resort area of Sharm El-Sheikh in October, the country's tourism scene has been on a decline, losing EGP2.2 billion per month, Minister of Tourism Hisham Zaazou said in December. Zaazou said additional, indirect losses could amount to between EGP700 million and EGP1 billion per month. In an effort to bring visitors back, the Egyptian government is looking to boost hotel supply.

An official at the Ministry of Investment told Daily News Egypt that the holding company for Tourism and Hotels will conduct revision, development, and modernization of the infrastructure of its hotels until tourism recovers. This way, it would be able to provide better services and raise their revenues in the future.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


Late last week, Minister of Investment Ashraf Salman launched a project to establish a hotel affiliated with a global hotel chain in Sharm el Sheikh.  The project is expected to cost EGP2.4 billion and will have 800 rooms.

This downturn may provide a solid opportunity for future development in Egypt: Salman said the main tourism cities in Egypt can "accommodate and attract more tourism investment opportunities." 

Suggested Articles

Many hotel owners will find themselves in the uncomfortable and unfamiliar position of deciding on a course of action for negotiating with their lende

For the week of Sept. 6-12, occupancy reached 48.5 percent, down 1.6 percent from the previous week.

Tisch joined Loews Hotels & Co in June 2017 from Loews Corp., where he was a VP.