Occupancy across Egypt crashes to 10 percent in Q2 2020: Colliers
Record-low occupancies have severely impacted RevPAR
The impact of COVID-19 on Egypt’s hospitality market has been revealed for this year’s second quarter. Data from Colliers International shows how the popular holiday spot for Brits and the Middle East has struggled massively with the virus.
YTD Q2 2020 saw most markets in Egyptian struggle to get occupancy rates above 10 percent, with leisure markets in the Red Sea area, Sharm El Sheikh and Hurghada being the worst-hit. In these areas, closures have become the norm, with RevPAR declining by 55 percent and 52 percent in Sharm El Sheikh and Hurghada respectively.
Elsewhere in Egypt, Cario and Alexandria have seen occupancy drop by 54 percent and 49 percent respectively.
ADR has also dropped in the quarter, though not as bad as RevPAR and occupancy levels. ADR drops were in the single digits across the country and actually up by 5 percent for Alexandria.
An additional 6,000 keys are expected to open in the Egyptian market by 2022, though Colliers dealt this news with the caveat that pipelines may experience significant delays due to the virus.
Red Sea cities Hurghada and Sharm El Sheikh account for 62 percent of supply planned for Egypt, being two of the most popular beach holiday destinations.
Similar to how Dubai is continuing to bring in new rooms during the pandemic, Egypt currently has 81,900 keys in Q2, though by the year’s end this is expected to jump to 83,100 keys.