Sharm Dreams Co. for Tourist Investment plans to complete the development of two tourism projects in 2017 with investment costs of EGP 370m, according to the company chairperson Mohamed Kamal El-Din Abo El-Enein.
He told Daily News Egypt that one of the hotels lies in Sahl Hasheesh, Hurghada, and includes 300 rooms, while the other one is in Sharm El-Sheikh with a capacity of 280 rooms.
The company will fund the developments through self-financing, as banks have not been granting loans to the tourism sector in the current period.
The tourism sector has been going through an increasing recession since 2011. Inflows have been declining gradually—and the curve slumped in 2015 after a Russian aeroplane crashed in Sinai while en route from Sharm El-Sheikh to Saint Petersburg.
Despite the crisis of the sector, Abo El-Enein said that it will recover as soon as European countries lift the travel ban they imposed on Egypt.
Russia had imposed a travel ban on its citizens to the Egyptian resorts beginning in November last year. The UK also had its flights to Sharm El-Sheikh suspended following the incident.
Both Hurghada and Sharm El-Sheikh include some 45,000 rooms out of a total 225,000 rooms in Egypt, according to data from the Egyptian Tourism Authority.