Chairperson of the Nuweiba-Taba Investors Association Samy Soliman said that the low occupancy rates in the region drove over 60 hotels to shut down and stop working during the last three years.
He added that occupancies in the hotels that are still working ranges between 0-5%, noting that hotels in that area suffered huge losses in the past six years.
According to Soliman, the region is ready for different tourism patterns, including coastal, recreational, cultural, and safari trips.
He pointed out that the region can secure 200,000 jobs per year in the tourism sector if supported by promotion campaigns, considering the area’s proximity to Jordan and the Arab Gulf.
The total hotel capacity in the Taba and Nuweiba area is at about 15,000 rooms on the coastline of the Gulf of Aqaba, with investments of more than EGP 15bn.
One of the investors in the region, who preferred to remain anonymous, said the problems are increasing day after day in the region, driven by arrears owed by facilities to banks and suppliers.
He added that 97% of hotels closed their doors and laid off workers in the past few months.
Moreover, he noted that occupancy rates will improve with the improvement of the performance of hotels in Sharm El-Sheikh, adding that if occupancy rates hike in it, tourists look for other close destinations, such as Taba.
He said that the marketing campaign for tourism in South Sinai is completely focused on the city of Sharm El-Sheikh, with no marketing for other areas.