The Egyptian hotel industry could see occupancy rates of between 35 to 61 percent, depending on location, in 2021 according to Colliers International’s latest Middle East and North Africa (MENA) Hotels forecast.
The country’s capital Cairo is expected to see occupancy rates of 40 percent, with a year-on-year hike of 48 percent.
On the other hand, Alexandria could see 61 percent, the highest forecast for all of Egypt’s cities, representing a Y-o-Y hike of 35 percent.
“As we move through 2021, we begin to observe several markets build on recovery that began in the fourth quarter (Q4) of 2020,” Colliers noted.
Tourism cities and hotspots Hurghada and Sharm El-Sheikh are expected to see occupancy rates reach 38 percent and 35 percent, respectively, in 2021. These rates indicate a Y-o-Y climb in occupancy rates of 57 percent and 50 percent, respectively
Colliers noted that ongoing monitoring of the novel coronavirus (COVID-19) pandemic by government entities and other key stakeholders has informed how markets open and close.
While travel restrictions are easing, controlled and consistent growth is key to recovering, and in the future improving on the hospitality markets performance in the key markets, Colliers International added.
Earlier on Sunday, an official from the tourism ministry told Reuters that the occupancy rate of Egypt’s hotels, which are running at half capacity due to COVID-19 regulations, was between 40 percent and 45 percent in the first quarter.
Tourism accounts for up to 15 percent of Egypt’s national output, and is a key source of foreign currency.
(With input from agencies)
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