Egypt’s hospitality market surged in 2024, defying expectations by welcoming a record 15.7 million tourists, a testament to the nation’s growing appeal. With an ambitious target of 18 million visitors set for 2025, the sector is poised for continued expansion, fueled by government initiatives and competitive pricing, according to a recent report by real estate research agency JLL.
The government’s concerted efforts to enhance the tourism infrastructure, coupled with Egypt’s cost-effective appeal relative to other destinations, have been pivotal in driving this surge. This influx of visitors has spurred a wave of supply activity, with construction projects gaining momentum and major hotel operators expanding their presence.
However, the sector’s performance, as measured by traditional metrics, presents a nuanced picture. JLL’s report reveals a 5.40 percentage point decline in Cairo’s hotel occupancy levels in 2024, coupled with a marginal 0.52 percent increase in the average daily rate (ADR). Consequently, revenue per available room (RevPAR) experienced a 4.87 percent year-on-year decrease.
This seeming contradiction between record tourist arrivals and declining hotel performance can be attributed to the evolving travel preferences of budget-conscious tourists, who are increasingly opting for economical accommodations or short-term rentals. This shift in consumer behavior underscores the need for the sector to adapt and diversify its offerings to cater to a broader range of travelers.
Looking ahead, the government’s focus on transforming West Cairo into a premier tourism hub is set to reshape the industry’s landscape. The region’s rich historical and cultural significance, coupled with ongoing development projects like the Grand Egyptian Museum and the Giza Plateau upgrades, are attracting significant investment and attention.
“This area is witnessing numerous hospitality projects and tourist attractions, including the recently opened Grand Egyptian Museum and the ongoing upgrades to the Giza Plateau. These prospects signal a promising future for Egypt’s hospitality industry, poised for growth and diversification in the coming years,” the JLL report stated.
As Egypt’s hospitality sector navigates these evolving dynamics, it remains poised for growth, driven by a surge in tourist arrivals and strategic government initiatives.
