Africa -  Egypt - Cairo

Egypt shows a continued economic recovery with a GDP growth of 3.9% in 2017 and forecasted 4.6% in 2018. The growth is supported by a better infrastructure and the newly liberalized local currency combined with a new investment framework. The presidential elections in April 2018 did not deter tourism growth and many see the reelection of President al-Sisi as an opportunity for political and economic changes although elections were a landslide victory.

The new investment framework aims to boost Foreign Direct Investment in the next few years by softening the administrative burden with state agencies, quickening the investment procedures and offering attractive tax incentives to potential investors. After the liberalization of the local currency in November 2016, the Egyptian pound suffered from a strong devaluation leading to double-digit inflation. However, visiting the country got more affordable for foreign investors and tourists alike which benefits the country’s economy.

Tourism follows the same trends. The Egyptian government implemented a new strategy to boost tourism including new security protocols and the diversification of Egypt’s source markets. International marketing campaigns targeting Eastern Europe and Spain have been run by government tourism agencies and a new system have been implemented to attract more regular and charter flights into the country. In 2017, tourism experienced a rebound across all Egyptian destinations with the return of European tourists and an increase in new source markets such as Poland and Lithuania.

Despite an increase in occupancy in 2017, Cairo experienced a drop in ADR due to the devaluation of the currency, dragging hotels’ values down by 3.2%. As the economy continue to stabilize, Cairo is booming. Values are expected to be up by 12 % in 2018 supported by the resumption of flights between Russia and Cairo in April after a 2.5-year suspension. Cairo is one of the biggest markets in Africa and as such has proven resilient to crisis. The new economic outlook and tourism strategy led by President al-Sisi will benefit the capital and 2019 and 2020 should show a steady 4% growth in values.

Exchange Rate:

Exchange Rate 2016 Exchange Rate 2017 Change 2016/2017 Exchange Rate 2018 Change 2017/2018
US$ 1 0 0
Egypt - Cairo 0.10664 0.05601 -47.5% 0.05619 0.3%

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
2015 55.47
2016 58.79
2017 56.90
2018 (f) 64.01
2019 (f) 67.16
2020 (f) 69.82

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Rishabh Thapar
[email protected]
  • +27 0 792790584 (m)
Laura Dutrieux
[email protected]