Chairman of Utopia For Real Estate and Tourism Investment Nadia Shalaby said occupancy rates in Taba’s hotels have fallen below 5%. She told Daily News Egypt, that 19 of 23 Taba hotels have suspended operations.
Shalaby said the tourism promotional campaigns conducted by the Ministry of Tourism have failed to attract Egyptians to Sharm El-Sheikh and other areas in the Red Sea. Hospitality providers in Nuweiba Taba have suffered low occupancy rates over the past five years, which has had an adverse effect on employment and security measures.
The Egyptian cabinet has provided hotels and tourism companies with a six-month deferment in outstanded debt owed to insurance, water, and electricity companies. In addition, the Central Bank of Egypt (CBE) decided to postpone dues owed to the banking sector by the tourism sector until the end of 2016. Hotel investments in the area of Nuweiba Taba amount to EGP 10bn. There is a total occupancy of 10,000 rooms.
The Ministry of Tourism launched a tourism programme for Egyptians last summer to make them visit the area of Nuweiba Taba. The programme succeeded in increasing the occupancy rates in the area.
Head of the Tourism Investors Association in Taba Sami Sulaiman hopes that increased domestic tourism will alleviate the financial burden on the tourism sector. She said the Ministry of Youth launched a tourism programme targeting that demographic.
The hotel room’s prices in the area over the last period have ranged between $12 and $20 per night, which are much below the cost of operation.