Africa -  Egypt - Sharm el Sheikh

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.

Sharm El Sheikh finally shows sign of recovery. After a few tough years owing to terrorist attacks and the explosion of the Russian aircraft in 2016, Sharm El Sheikh tourism started reinventing itself. The resumption of flights from Russia combined with the new security protocols lead to a significant increase in group travel that drove occupancy. Values are up 23.4% owing to an increase in both occupancy and ADR. The

2018 year-to-date performance shows a continuing growth. Values are expected to be up by 41% and the positive trend is likely to continue in 2019 and 2020. However, such growth should only be seen as recovery and values are still 30% below their 2010 levels. The important news is the trend and that at long last a prolonged recovery is likely.

Exchange Rate:

Exchange Rate 2016 Exchange Rate 2017 Change 2016/2017 Exchange Rate 2018 Change 2017/2018
US$ 1 0 0
Egypt - Sharm el Sheikh 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 - Sharm el Sheikh RevPAR Change

Egypt - Sharm el Sheikh RevPAR

Year RevPAR
2015 38.82
2016 17.83
2017 22.00
2018 (f) 31.05
2019 (f) 40.93
2020 (f) 43.53

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]