Colliers International for real estate consulting services published its 3-month rolling forecast for August until October on Thursday.
The report showed a drop in revenues per available rooms (RevPAR) in recreational cities like Hurghada and Sharm El-Sheikh, as well as a decline in overall guest satisfaction in Sharm El-Sheikh, as opposed to the trend in Cairo and Alexandria.
Sharm El-Sheikh dropped in the Guest Index Experience (GIE) by 5%, putting it in the 3-star hotel category, according to the forecast. However, Hurghada’s GIE increased by 1%, maintaining its 3-star hotel ranking, while Alexandria and Cairo decreased by 2% and 1%, respectively. The two latter cities therefore stand at 73 points with a 3-star hotel ranking.
Compared to last year’s RevPar of the same 3-month period, Cairo witnessed a 6% increase, Sharm El-Sheikh a 45% decrease, Hurghada a 34% decrease, and Alexandria a 10% increase.
In the full-year forecast of RevPAR, Cairo and Alexandria is expected to increase by 13% and 12%, respectively, while Sharm El-Sheikh and Hurghada dropped by 54% and 41%.
In its forecast, Colliers attributed the drops in Hurghada’s RevPAR to the travel ban of major markets, such as the United Kingdom and Russia. Sharm El-Sheikh also experienced declines in the GIE ratings due to the market conditions.