Hospitality Industry In Egypt Market Size

Market Size of Hospitality Industry In Egypt

Study Period	2020-2029
Base Year For Estimation	2023
Market Size (2024)	USD 3.78 Billion
Market Size (2029)	USD 4.65 Billion
CAGR (2024 - 2029)	4.25 %
Market Concentration	Low
Major Players *Disclaimer: Major Players sorted in no particular order

Egypt Hospitality Market Analysis

The Hospitality Industry In Egypt Market size is estimated at USD 3.78 billion in 2024, and is expected to reach USD 4.65 billion by 2029, growing at a CAGR of 4.25% during the forecast period (2024-2029).

Due to the diversification of new forms of tourism, e.g., health and wellness, medicine, culture, or leisure travel, the growth in Egypt's tourism sector is creating an incentive for hotel operators to expand their businesses. To attract more extended stays, the operators are focusing on meeting the needs of dynamic customers by implementing various strategies. It includes providing a more authentic experience with a homelike environment, spacious rooms, a fully equipped kitchen, free wireless connection, complimentary breakfast, on-site laundry service, etc. It is anticipated that the inauguration of the Grand Egyptian Museum, expected in the current year, will bring in more tourists to the country.

There is a significant increase in the number of tourists in Egypt compared to global tourism, contributing to the overall growth of the country.

Egypt鈥檚 hospitality market is on the rise. It is expected to continue to grow in the years to come as a result of the rapidly increasing tourist demand and higher spending on leisure activities and tourism infrastructure. Tourism is a major contributor to the Egyptian economy. With the launch of many new projects across Cairo and other major Egyptian cities in the previous year, the hospitality sector is expected to continue its strong growth and provide a boost to other real estate sectors.

Egypt's hospitality market has seen strong growth in recent years, driven by the country's rapid tourism recovery after the pandemic. This is largely due to the government and private sector's economic initiatives, such as the introduction of reforms and the creation of new hospitality products / demand drivers. These initiatives, combined with the strong domestic demand, have contributed to a strong market recovery.

Egypt Hospitality Industry Segmentation

The hospitality industry refers to any business in which the primary source of revenue is the sale or rental of food and beverages or accommodations. There are several broad categories of service industries within the hospitality industry. The hospitality industry in Egypt is segmented by type and segment. By type, the market is segmented into chain hotels and independent hotels. By segment the market is segmented into service apartments, budget and economy hotels, mid and upper-midscale hotels, and luxury hotels. The report offers market size and forecasts for the hospitality industry in Egypt in value (USD) for all the above segments.

By Type
		Chain Hotels
		Independent Hotels

By Segment
		Service Apartments
		Budget and Economy Hotels
		Mid and Upper Midscale Hotels
		Luxury Hotels

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Hospitality Industry In Egypt Size Summary

The hospitality industry in Egypt is experiencing a robust expansion, driven by a surge in tourism and increased investment in tourism infrastructure. The sector is poised for continued growth, fueled by the diversification of tourism offerings such as health, wellness, and cultural travel. Hotel operators are adapting to the evolving demands of tourists by enhancing their services to provide more authentic and comfortable experiences. The anticipated opening of the Grand Egyptian Museum is expected to further boost tourist arrivals, contributing to the industry's growth. The government's initiatives, including economic reforms and incentives for investors, are playing a crucial role in attracting both domestic and international interest in the hospitality sector. This growth is also supported by the development of new projects across major cities, which are expected to bolster the real estate market.

The Egyptian hospitality market is characterized by a fragmented landscape with a strong presence of international hotel brands. Companies like Marriott International, Accor, Hilton Worldwide, Radisson Hotels, and Melia Hotels International are expanding their footprints in the country. The market is also seeing increased competition from platforms like Airbnb, which have gained a significant consumer base. The government's efforts to enhance visitor safety and security, along with initiatives to broaden visa-upon-arrival privileges, are contributing to the rise in tourist numbers. The sector's recovery post-pandemic has been swift, with a notable increase in hotel occupancy and tourist arrivals, underscoring the industry's vital role in Egypt's economy.

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