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Sunday, 16 December 2018

Hotel occupancy rates in Cairo expected to rise 7% y-o-y in 2018, says Colliers

Hotel occupancy rates in Cairo are expected close 2018 up 7% to 70% total occupancy, Colliers International said in its latest report on Cairo’s hospitality market (pdf). Occupancy grew from last year largely on the back of the country’s improved socio-economic climate as it recovers from the effects of the EGP float in late 2016. “This growth is expected to continue into 2019 bolstered by a number of upcoming government based tourism investments such as the new Grand Egyptian Museum in Giza and the development of Maspero Triangle in Downtown.” Cairo’s largest source market for hotel occupants this year was the GCC, accounting for 55% of the domestic market, followed by local travelers at 23% and Western European tourists, according to the report. “Anecdotal evidence” suggests Chinese tourist arrivals are also on the rise in Egypt and will jump by as much as 95% y-o-y in 2018.

What we’re missing: “Cairo’s hotel market continues to lack internationally branded economy, midscale and lifestyle hotels. There is a gap in the market to meet demand from millennials who seek differentiated, trendy, yet affordable accommodation.” Colliers also sees that Egypt is not doing enough to carry out “focused marketing efforts” in China and that hotels in the country are not equipped to cater to these tourists.

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