A number of tourism investors are expecting hotels to re-open their doors amid expectations that Egypt’s tourism sector will recover, although some investors warned against increasing capacity which might lead to a decrease in the prices of rooms.
About 60,000 hotel rooms are believed to have closed on the North Coast in light of the decline in tourism, but recovery could follow the allocating of new lands for investment, as well as granting financial incentives for investors.
It has been recognised that Arab tourists tend to stay at serviced apartments, which are not available in Egypt at the present time.
Hotel capacity in Egypt currently amounts to 210,000 hotel rooms, along with another 120,000 rooms under construction. When the tourism season reached its peak in Egypt, there were about 12 million tourists with an occupancy rate of 60% which led to the current low prices, according to the law of supply and demand.