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Wednesday, 3 February 2021

Hotel occupancy falls 60% in 2020

Look away: The final 2020 figures for Egypt’s hotel industry are in. Hotel occupancy in four of Egypt’s biggest tourist destinations fell almost 60% in 2020 to average just 30% as the covid-19 pandemic brought the country’s tourism sector to a halt. Figures in Colliers International’s latest MENA report (pdf) show that the capital’s hotel occupancy rate fell 65% y-o-y in 2020 to average just 27% during the 12-month period. The Red Sea resort towns of Hurghada and Sharm El Sheikh fared even worse, closing out the year with lower rates of 24% and 23% respectively. Room occupancy in Alexandria was the least hit by the pandemic falling 44% to achieve an average occupancy rate of 45% during the year.

Last year was rough, but the recovery is already underway: After the tourism industry all but shuttered during the second quarter with the suspension of international flights, occupancy rates are forecast to pick up this year with the roll-out of covid-19 vaccines, which will help kickstart international travel. Colliers expects Hurghada and Sharm El Sheikh to make the biggest comebacks in room occupancy, surging 88% and 78% respectively over the 12-month period. Alexandria will likely see the most visitors with an occupancy rate of 62% while rates in Cairo could rise by more than 50% to reach 43%.

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