Surge in tourist arrivals sees Cairo’s hotel occupancy rate reach 70%

AFRICAN BUSINESS AND ECONOMYJanuary 27, 2024 at 9:14 AM UTC

TLDR

Egypt's hospitality sector in Cairo experienced a surge in occupancy rates driven by a significant increase in tourist arrivals.
The number of visitors to Egypt rose nearly 36% annually to 13.9 million during the first ten months of 2023, eight times higher than the global tourism average.
Occupancy rates in Cairo rose to 70% in November 2023, reflecting a yearly increase of approximately 100 basis points.

A new report by JLL indicates that Egypt's hospitality sector in Cairo experienced a surge in occupancy rates, driven by a significant increase in tourist arrivals. The report highlights that the number of visitors to Egypt rose nearly 36% annually to 13.9 million during the first ten months of 2023, a rate eight times higher than the global tourism average. In October 2023 alone, Egypt welcomed 1.3 million tourists, marking the second-highest figure since October 2010.

This substantial influx of visitors has generated heightened demand for various accommodations in Cairo. Consequently, the occupancy rates in the city rose to 70% by November 2023, reflecting a yearly increase of approximately 100 basis points, as reported by JLL.

Ayman Sami, Country Head at JLL Egypt, emphasized that the robust growth in tourist demand and increased investment in leisure and tourism infrastructure reaffirm the strong position of Egypt's hospitality market. The report suggests that this positive trend is expected to continue in the coming years, signaling a promising outlook for the country's hospitality sector.

Key Takeaways

In the past year, Cairo experienced an expansion in its hotel capacity with the addition of 250 keys, notably marked by the opening of Hilton's Waldorf Astoria Heliopolis hotel in the fourth quarter. This increment contributed to a total hotel inventory of around 28,000 keys in the city. With tourism constituting 15% of Egypt's gross national product (GNP), this growth in hotel stock aligns with the country's strategic focus on bolstering its tourism sector. Egypt aims to double the number of visitors to 30 million by 2028, as indicated by the country's top tourism official in a statement to AP late last year. This ambitious target underscores Egypt's commitment to leveraging its rich cultural and historical attractions to attract a larger share of the global tourism market, signaling a proactive approach to economic development through the tourism sector. The expanded hotel capacity in Cairo positions the city favorably to accommodate the expected increase in tourist arrivals.

Egypt

Tourism

Travel

JLL

Hospitality