Occupancy rate at Egypt’s hotel market is expected to range between 43% and 57% in 2021, according to Colliers International’s latest Middle East and North Africa (MENA) Hotels Forecast.
As we move through 2021, several markets built on recovery beginning in the fourth quarter (Q4) of 2020, Colliers said.
The report said that ongoing monitoring of the novel coronavirus (COVID-19) pandemic by government entities and other key touristic stakeholders has informed how markets open and close.
While travel restrictions are easing, controlled and consistent growth is key to recovering, and in the future, improving on the hospitality performance in the key markets.
As for Egypt, Colliers forecasts that the tourism hotspots of Hurghada and Sharm El-Sheikh will witness a year-on-year (y-o-y) hike in occupancy rates of 112% and 88%, respectively. This will mean that the two cities will see their occupancy rates reach 51% and 43% in 2021, respectively.
Alexandria is expected to record 57% in hotel occupancy during 2021, with a hike of 26% in y-o-y occupancy variance.
It reported that Cairo’s hotel occupancy is forecast to reach 49% in 2021, with an increase of 79% in year-on-year (y-o-y) occupancy variance. Meanwhile, the 49% forecasted occupancy is 4.3 percentage points higher than the previous forecast by Colliers.
The report forecast that the UAE’s Dubai Creek, Festival City, Sheikh Zayed Road, DIFC, Dubai Marina, JBR, and Palm Jumeirah will all achieve occupancy rates of 65%, 64%, 73%, and 69%, respectively.
The UAE’s Ras Al-Khaimah will witness an occupancy rate of 61% in 2021, with a hike of 27% in y-o-y occupancy variance.
The Saudi cities of Riyadh, Jeddah, Makkah, Madinah, and Al-Khobar are all projected to witness occupancy rates of 57%, 54%, 25%, 32%, and 56%, respectively, in 2021.
