Revenue per available room in Luxor will suffer a significant year-on-year (YoY) decline between June and August 2015, dropping by 28% to reach $3, a report issued by Colliers International revealed.
Occupancy in Luxor, moreover, will not hit the double digits, remaining at 8%.
On 10 June, a suicide car bomb attack took place in the area of Al-Karnak temple in Luxor, killing two militants and injuring another, as well as a police officer and tens of tourists.
The Ministry of Tourism announced that it has increased its security measures at tourist sites following the suicide bomb attack.
“We continue to take every possible measure to ensure that no harm comes to anyone visiting Egypt,” said Tourism Minister Khaled Rami in an official statement.
Discussing the recent militant attack in Luxor on tourism, the report stated that it is expected to keep tourists “at bay for the medium term”.
In May, a ministerial official told Daily News Egypt that the ministry has postponed offering 95,000 metres in Hadabet El-Toud, east of Luxor, to 2016, until tourist flow to Egypt recovers. The Tourism Development Authority (TDA) proposed a tender for the area at the end of 2013, but no investors offered to take on the projects.
Meanwhile, revenues in Alexandria plummeted by 17% YoY, and are expected to reach 51% during the next two months.
Revenues for a room in Sharm Al-Sheikh and Cairo will witness the biggest YoY growth during the next two months, increasing by 17% in Sharm El-Sheikh and 8% in Cairo. Revenue for a room in Cairo will stand at $61, while in Sharm El-Sheikh it will record $34.
Hotel occupancy in Hurghada, Alexandria, Sharm El-Sheikh and Cairo during the same period is expected to reach 76%, 65%, 63% and 46%, respectively.
Colliers has previously predicted that in Sharm El-Sheikh, revenues for available hotel rooms would increase by 19% YoY between May and July. Demand in Cairo was expected to be maintained, with revenues for available hotel rooms increasing by 24%.
“Ramadan would have a negative effect on domestic demand, however European demand will continue to grow stronger than in 2014,” the report read.