Sharm El-Sheikh, Hurghada occupancy grows over 30% in Q2 2018: Colliers

Mohamed Samir
3 Min Read
Naama Bay in Sharm El Sheikh

Egypt’s resort towns of Sharm El-Sheikh and Hurghada continue their recovery as both posted growth in occupancy by 34% and 39%, respectively, year over year (y-o-y) in the second quarter (Q2) of 2018, according to Colliers’ quarterly MENA review report. The witnessed increase was driven by increased security measures, tourism campaigns, and increased consumer confidence.

In terms of hotel supply, Saudi Arabia’s hotel inventory grew by 9%, the equivalent of 3,800 rooms, in Q2 2018, and the highest growth was witnessed in Dammam and Khobar with a 15% increase in supply.

Meanwhile, in Egypt’s case, a 2.1% increase was witnessed, or 1,700 rooms, keeping in mind that the InterContinental Hotels Group are continuing their plans to increase their portfolio, with the signing Holiday Inn, and Satybridge Suites Giza Sun Capital. On the other hand, the UAE’s hotel supply grew by 2,450 rooms, or 3%, mainly the new opening in Abu Dhabi and Dubai.

Moreover, in terms of the average daily rates (ADR), Sharm El-Sheikh and Hurghada both witnessed a boom of 20% and 26%, respectively, followed by Saudi Arabia’s Jeddah with a10% increase in ADR, Kuwait’s Manama with a 10% increase, and the UAE’s Fujairah, which grew by 5%.

On the other hand, Makkah’s ADR shrunk by 12%, while in the UAE, both Dubai and Abu Dhabi witnessed a 6% decrease in ADR, as both cities dropped tourism related fees for hotels in order to increase competitiveness.

Colliers forecasted that Saudi Arabia’s outlook forecast is to witness strong growth in occupancy, with domestic tourism as the key driver of such growth, supported by investments in entertainment industries, with the opening of the first multiplex cinema and the screening of the first film after 30 years in April.

In Egypt’s case, recoveries in occupancy and the ADR are expected to continue, with the strengthening of the domestic tourism market and the return of key source markets, while in the UAE, Abu Dhabi is expected to lead the growth in occupancy, while other cities such as Sharjah, Fujairah, and Ras Al-Khaimah expect growth in the ADR.

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Mohamed Samir Khedr is an economic and political journalist, analyst, and editor specializing in geopolitical conflicts in the Middle East, Africa, and the Eastern Mediterranean. For the past decade, he has covered Egypt's and the MENA region's financial, business, and geopolitical updates. Currently, he is the Executive Editor of the Daily News Egypt, where he leads a team of journalists in producing high-quality, in-depth reporting and analysis on the region's most pressing issues. His work has been featured in leading international publications. Samir is a highly respected expert on the Middle East and Africa, and his insights are regularly sought by policymakers, academics, and business leaders. He is a passionate advocate for independent journalism and a strong believer in the power of storytelling to inform and inspire. Twitter: https://twitter.com/Moh_S_Khedr LinkedIn: https://www.linkedin.com/in/mohamed-samir-khedr/
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