By Valentina Pasquali, October 31, 2024
As Egypt seeks to bolster its tourism sector, regional and international hotel operators are eagerly eyeing expansion opportunities. However, experts warn that without significant improvements in infrastructure, particularly airports, these ambitions may falter.
Egypt aims to mirror the high-end hospitality and entertainment landscape seen in the UAE and other Gulf states while attracting upscale visitors to its iconic historical sites. This dual focus presents unique challenges: the nation must safeguard its ancient treasures like the Pyramids and the Sphinx while simultaneously developing modern infrastructure and vibrant coastal resorts.
In the shadow of rising regional tensions and the ongoing fallout from the Suez Canal shipping crisis, Saudi Arabia is aggressively pursuing a Dubai-inspired tourism model, creating competitive pressure for Egypt. Despite this, hotel operators remain optimistic about the Egyptian market.
Elie Milky, vice-president for development at Radisson Hotel Group, emphasizes the company’s commitment to expanding in Egypt, noting the abundance of hospitality projects in the pipeline. “The more countries establish themselves as tourism hubs, the more attractive the entire region becomes,” he stated at the recent Future Hospitality Summit in Dubai.
Egypt is embarking on ambitious projects like a new beachfront city in Ras El-Hekma, backed by substantial investments from Abu Dhabi’s sovereign wealth fund, ADQ. This development aligns with discussions between Saudi investors and the Egyptian tourism minister to unlock the nation’s untapped potential.
The country’s rich cultural and architectural heritage remains a significant draw. Siegfried Nierhaus of H World International cautions against transforming Egypt into a replica of Dubai, highlighting its unique selling points: its stunning landscapes, ancient attractions, and the Nile River.
However, industry leaders stress that substantial investments in airports, roads, and overall infrastructure are essential for growth. Philip Barnes, CEO of Rotana, underlines the need for improvements at Egyptian airports to enhance the visitor experience. “Tourism is crucial for Egypt, and it should be at the top of every tourist’s bucket list,” he asserts.
With its breathtaking history and culture, Egypt stands poised to reclaim its place as a premier travel destination—but the clock is ticking. To meet the rising expectations of tourists and compete with regional rivals, decisive action on infrastructure investment is imperative.
