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.
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."