The number of closed hotels has increased nationwide during the current period, as the current tourism crisis continues. The number of closed facilities in all tourist areas registered 220 hotels so far, according to Ahmed Balbaa, chairperson of the tourism committee in the Egyptian Businessmen’s Association (EBA).
Sharm El-Sheikh acquired the lion’s share by registering 54 closed hotels, according to Balbaa. He added that all the hotels in the tourist areas partially closed their doors, and there is no hotel operating currently at full capacity. Since the Russian aeroplane crash in October 2015 in Sinai, Balbaa said that over 220 hotels have closed down permanently in Sharm El-Sheikh, Hurghada, Marsa Alam, Safaga, Luxor, and Aswan.
Balbaa explained that the number of hotels that permanently shut down in Sharm El-Sheikh alone was 54, and 34 have shut down in Hurghada. He pointed out that the hotels closed due to the extreme lack of tourists during the current period. He explained that they will re-open their doors after the return of tourism. Head of the Tourism Investors Association in South Sinai, Hisham Ali, said that he expects the number of closed hotels will increase after the Eid Al-Adha holiday.
He said that three of his hotels closed, and he will not re-open them again until tourism returns. Head of the Red Sea Tourism Investment Association, Kamel Abu Ali, said that in Hurghada, nearly 34 hotels have shut down completely and all hotels have partially closed. He said that he also closed his hotel in Hurghada, which is affiliated with Allbatros Group, and he notified the Ministry of Tourism about this procedure.
Tarek Shalaby, vice president of the Tourism Investment Association in Marsa Alam, said that 35 hotels in the city shut their doors due to the decline in tourism activity. The hotels bear significant losses if they continue to work. He explained that 50% of Marsa Alam’s hotels closed their doors completely, as a result of the low occupancy rate and the scarcity of tourists—especially those from Russian, the UK, and Italy.
President Abdel Fattah Al-Sisi said that, according to the head of the hotel sector at the Ministry of Tourism, the number of closed hotels increases since the 25 January Revolution. The event had a direct impact on the tourism sector. He explained that the hotels are required to appeal to the hotel sector if they plan to shut down, but the sector cannot object to the decision, especially if the reason is lack of occupancy. The number of tourism influx registered 2.3m tourists during the first half of 2016, compared to 4.8m tourists during the first half of 2015.