The lack of tourists to Egypt is not expected to affect the Egyptian hotel market in Cairo since corporates are filling in the profit gaps the tourists left, Colliers International indicated in its latest forecast for hotel markets.
The report predicted that revenue per available room is will surge by 34% in Cairo between November and January. There will also be a 16% revenue increase in Alexandria.
“The coastal city is not expected to be strongly affected by the travel advisory, with demands coming mainly from the corporate and Meetings, Incentives, Conferences, and Exhibitions (MICE) segments,” the report read.
Revenue for a room available in a Cairo hotel is expected to be $73 while one available in Alexandria can reach $43. The increase in revenues on a year-on-year (YoY) basis is about 48% in Cairo and 5% in Alexandria.
Occupancy in Cairo hotels stands at 50% while that in Alexandria reached 59%. Sharm El-Sheikh and Hurghada will suffer losses in revenues during the same quarter compared to the previous year. The YoY drop is predicted to be 59% in Sharm El-Sheikh and 55% in Hurghada, with the profits per room reaching reach $11 and $13, respectively.
Revenues are lowest in Luxor, with the available room brining in only $9 on average.
Following the Russian plane crash in Sinai that cause the deaths of 224 passengers and cabin crew members, European tourists deserted the touristic spot.
Minister of Tourism Hisham Zaazou issued a statement in which he announced the launch of a campaign to revive tourism in Sharm El-Sheikh. The campaign “Sharm El-Sheikh in our hearts” will start on Sunday and continue until the end of April 2016.
Hotels applied a 25% discount rate on their charges per available room to attract both foreign and Egyptian tourists.