The novel coronavirus (COVID-19) pandemic continues to have a marked impact on the hospitality industry, both in Egypt and internationally.
In the year to date (YTD), the second quarter (Q2) of 2020 is marked by significant declines in demand across the Egyptian market, with most markets experiencing occupancies of below 10% in the quarter.
The leisure markets in the Red Sea, Sharm El-Sheikh and Hurghada have experienced low occupancies in Q2 of 2020. This resulted in a year-on-year (y-o-y) decline of over 50% in the first half (H1) 2020.
As a knock on effect, this has resulted in many forced closures and a decline in revenue per available room (RevPar) of 55% and 52% in the Sharm El-Sheikh and Hurghada markets, respectively. The Alexandria market is the only one to have recorded a growth in average daily rate (ADR) in H1 of 2020. However, the more competitive inflation rate compared to H1 of 2019 plays a factor.