A forecast report conducted by Colliers International on hotels in Egypt said that occupancy rose in the third quarter (Q3) of this year, as consumer confidence returns to the country after years of turmoil and instability.
According to the report, continued growth in occupancy is an indication of returning confidence to the market.
As for Cairo hotels, the report noted that occupancy growth in Q3 was up 4% year-over-year (y-o-y), while higher occupancy growth is also expected in the fourth quarter of the year.
The report also noted that recent announcements for new hotel developments will serve as a boost to the market in the coming period.
In Sharm El-Sheikh, occupancy was up 22% in Q3 due to an increase of Arab and Eastern Europeean tourists visiting.
“Internationally branded supply has remained stagnant in Sharm El-Sheikh in recent years, however, supply is expected to grow by 3.4% until 2019,” the report added.
As for Hurghada, the market experienced a recovery in demand compared to the same period from last year, mainly driven by an increase from regional and local markets.
“The destination is expected to see a higher proportion of visitation from local and foreign families,” the report expected.
Meanwhile, Alexandria is expected to benefit from local travellers on business, as well as people from the Gulf countries.
“As corporate demand is a substantial source to Alexandria, it is important to cater to this segment by offering quality accommodation to price-sensitive travellers,” the report added.
Colliers International is a global company in commercial and real estate services, with over 15,000 employees operating in 68 countries.