Africa -  Egypt - Cairo

Egypt continues to face economic challenges, showing large account deficits due to a lack of foreign reserve and one of the lowest GDP growths in Africa at 2.6% in 2016. The country is currently going through

significant structural adjustments supported by the IMF that, although positive, brought the inflation rate to very high levels (up to 30.1%) last year. The good news is the renewal of interest from investors following these adjustments and a new investment law is scheduled in 2017 that should boost foreign inflows. In addition, President Trump gave his full support to President El Sisi during his visit to the United States in April 2017 which brings new hopes for the Egyptian economy.

However, the terror-related incidents in the country in 2016 has strengthened security concerns. Although the government has implemented emergency powers, that has proven to be relatively ineffectual. The result was tourists remained wary of visiting the country and tourism did not enjoy a substantial recovery.

Yet, Cairo occupancy raised to above 60% in 2016. The capital successfully attracted new feeder markets such as China and India that are less concerned about the security situation. That offset the drop in ADR to below US$100 although the Egyptian Pound has strengthened against the US Dollar. REVPAR is up by 10.7% boosted by occupancy. Hotel values increased by 5.9% bringing positivity and hope to the country.

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 1
Egypt - Cairo 0.12938 0.11593 -10.4% 0.05655 -51.2%

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Egypt - Cairo RevPAR Change

Egypt - Cairo RevPAR

Year RevPAR
2010 82.45
2011 41.94
2012 47.52
2013 35.98
2014 46.76
2015 55.47
2016 61.38
2017 (f) 59.52

For more information, please contact:

Tim Smith, MRICS
tsmith@hvs.com
  • +27 797 342296 (w)
Laura Dutrieux
ldutrieux@hvs.com
Laura Dutrieux
ldutrieux@hvs.com