Egypt has recorded an 35% increase in the price of hotel rooms so far in 2023 due to more tourists from abroad and increase in domestic tourism in the summer (June–August), reported Asharq Business.
With limited hotel capacity in a country of over 100 million people, prices are expected to continue rising until the following year.
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The hotel and resort room prices have increased by not less than 35% compared with last year and are expected to increase by 30% in 2024.
Egypt aims to attract 15 million foreign tourists in 2023, exceeding the previous record of 14.7 million tourists in 2010.
In the first half of the current year, about seven million tourists visited Egypt, resulting in higher hotel occupancy rates of 80% compared with 65% in the same period last year.
According to a government official, the rise in prices is due to an increase in hotel bookings in Egypt, with some destinations seeing a 45% increase in hotel room prices.
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By GlobalDataAbu Soma Tourism Development Company CEO Ibrahim El Messiri expects hotel room rates in coastal areas to rise by at least 10% beginning 2024, reported Arab Finance.
According to Tourist Investors Association Nuweiba-Taba region head Sami Suleiman, hotel rates in this region area are estimated to be between $120-$150 per night by the end of 2023, up from $70-$100 in the first half (H1) of the year.
Egyptian Minister of Tourism Ahmed Eissa expects the country’s inbound tourism to grow to 30 million tourists by 2028 and this will require the ministry to double the present hotel capacity, which stands at 220,000 rooms, to accommodate this rise in numbers.
Currently, 150,000 rooms are under construction, and according to one official responsible for promoting tourism, this figure brings the country “close to the ability to accommodate 20 million tourists, but pumping new investments needs more steps.”
Currently, the government is looking at introducing a new initiative to fund tourism investment projects along with the strategy of doubling hotel capacity under operation.
