Red Sea hotel market “not recovering” from effect of travel bans
The hotel market in Red Sea cities is still reeling from the effect of travel bans from European countries, and “demand has not shown any signs of recovery,” says Colliers International’s latest MENA Hotel Forecasts report (pdf) for August-October 2017. “Although travel advisories from most traditional source markets have eased, [Hurghada] continues to suffer from a negative security perception impacting tourist arrivals,” according to the report. The report forecasts c. 40% occupancy in Sharm El Sheikh and Hurghada over the coming year — and a roughly 40% decline in average revenue per room.
Nonetheless, Egyptian destinations are taking steps to return as hotspots for UK tourists seeking winter sun, Tom Parry writes for TTG. Despite the Sharm ban, Thomas Cook is “intent on continuing a healthy programme to Egypt for the UK market, and from November is heading further south down the Red Sea coast to the resort of Marsa Alam. It is also adding capacity to Hurghada.” Philip Breckner, director of operator Discover Egypt, says Thomas Cook’s move is “very encouraging” and “sends a strong message that Egypt is open … The country has suffered from a misconception that it’s ‘off limits’ but that’s not at all true. Cairo, Luxor and the Nile Valley are all very much open for business.”