Average daily occupancy rates (ADR) in Red Sea tourism hotspots, Sharm El Sheikh and Hurghada, dropped 76 percent and 59 percent respectively
Hotel occupancy rates are still down in the first quarter, with tourist hotspots continuing to see declining numbers as last year, with Colliers International’s latest report highlighting that increase in development and supply is optimistic in the market.
Although numbers are declining, it is important to note that Q1 2020 did include 2 months of normal activity before March saw Egypt’s reaction to the pandemic, including flight closures.
Average daily occupancy rates (ADR) in Red Sea tourism hotspots, Sharm El Sheikh and Hurghada, dropped 76 percent and 59 percent respectively.
ADR acts as an indication of revenue through splitting average revenue across the number of occupied rooms.
On the other side, the capital Cairo saw ADR falling 68 percent in Q1 2021, with Alexandria also declining at 40 percent.
Occupancy rates for Sharm El Sheikh dropped 33 percent YoY, while Hurghada fell 26 percent, and Cairo at 22 percent.
The seaside city of Alexandria only saw a 1 percent drop in occupancy rates, “Alexandria’s growing popularity as a Mediterranean coastal city has made the market a favorable domestic leisure destination,” Colliers’ report noted.
It was also supported by its North Coast resort market.
In a January interview, Tourism Minister Khaled El Anani stated that tourism revenue dropped to about $4 billion in 2020 from $13 billion the year before, seeing around a 60 percent YoY drop in Q1 2021.
Colliers is, however, positive as a whole for the industry in a report earlier this month. Hotel occupancy for Cairo in 2021 is expected to climb 66 percent, with Sharm El Sheikh up 58 percent, and Hurghada at 59 percent.
