Egypt’s tourism minister says that the shortage of hotel rooms is a major problem.

Egypt’s tourism ambitions are being held back by a shortage of hotel rooms — and the foreign investment needed to build them. Sherif Fati, Egypt’s Minister for Tourism and Antiquities says that the country’s tourism long-term goals depend on expanding accommodation capacity rapidly.

Fathi said this week that the lack in hotel rooms was a challenge. “We need hotel rooms. “We need hotel rooms.”

Egypt is hoping to attract 30 millions tourists per year, but officials claim that doubling Egypt’s hotel stock will be necessary in order to achieve this goal. In August last year, Mostafa Madbouly declared that the North African country was ready to welcome 30 million tourists annually. aiming to add between 200,000 and 250,000 rooms.

Shifting Targets

Attraction is the goal of all efforts 30 million visitors was announced in 2023It was hoped to reach the goal by 2028. It was extended to 2030 at the end of 2024Then, it will be between 2031 and 2032. Fathi stated that the timeline will depend on the capacity of the hotels: “If we do not double the number rooms, this vision will never be realized.” If we double the number of rooms before 2031, then it is possible to achieve this goal earlier.

Egypt has around 220,000 rooms Lodging Econometrics reported that there were 28,600 hotel room in the pipeline by the end last year. Hotel Construction Pipeline Trend Report.

Egypt will have 15.8 million visitors in 2024. This is a 6% rise over 2023. The minister anticipates an increase of more than 10% this year.

“Last years we did well. 6% wasn’t our target, but geopolitically, around us… I’m extremely okay; I’m happy with the growth. The first three month [of 2025] The increase was 25% over last year. We’re changing the [year’s] “Prediction…to be higher than 10%.”

Foreign Direct Investment in Egypt

Fathi stressed that no public funds will be used for tourism development. “The government doesn’t build hotels,” he stated. “It all comes from either FDIs or the private sector.”

The UAE led the way with $20.42 Billion in foreign direct investments. The U.S. and U.K. were also major contributors, as well as Saudi Arabia, Switzerland, and the U.K. Central Bank of Egypt data.

Fathi said that while he didn’t have a specific price for what was needed to achieve the room target, the ministry is developing a platform to help better direct investments and measure them.

We are trying to create an investment bank. [The platform will] Create a marketing unit to promote all investment opportunities available in Egypt. Fathi: “If we are successful in this, it will be a breakthrough.”

The General Authority for Investment and Free Zones already has something very similar to this called the ‘Invest in Egypt MapThis map highlights the various opportunities in different parts of the country. As of May 2, 2020, only 29 hotel developments are listed on the map.

What is being built?

But things are changing. In February of last year, Egypt signed an agreement with the United States. $35 billion deal with the UAE to develop its Mediterranean coast, a plan which includes building numerous hotels. The Abu Dhabi Fund for Development announced last month, on a smaller-scale, a $120 million plan for a 302-room Sofitel Near the Giza Pyramids

Egypt’s Private Sector still faces obstacles, such as inflation and currency devaluation. The country has turned to the International Monetary Fund (IMF) for support, with a four-year $3 billion deal signed in late 2022 — later expanded to $8 billion as the country faced mounting financial pressure.

Fathi emphasized that the IMF would not be involved in tourism development. “We don’t participate in IMF talks and government-IMF meetings. “The private sector is the primary driver for building new hotels and investing in the tourism industry.”