Minister of Housing, Utilities and Urban Communities Sherif El-Sherbiny chaired a meeting of the Board of Directors of the Tourism Development Authority (TDA) to review ongoing work, assess the status of tourism development projects, and discuss measures to accelerate tourism investment.
During the meeting, the board approved a package of measures aimed at supporting tourism development. These include rescheduling instalment payments for tourism development and investment companies, without affecting the timelines of subsequent payments, within the framework of previously approved facilitation measures.
The board also approved extending the grace period granted to tourism development and investment companies that have obtained preliminary approvals and remain compliant with their financial obligations. The extension allows these companies additional time to complete preliminary approval procedures and proceed with final land allocation steps.
El-Sherbiny reaffirmed the ministry’s commitment to supporting serious investors in hospitality projects and providing all necessary incentives to increase hotel room capacity, in line with the state’s strategy to strengthen tourism infrastructure.
The meeting reviewed the authority’s revenues generated between July 1, 2025 and January 2026, which reached approximately EGP 4.689bn—equivalent to 294% of targeted revenues for the same period of the current fiscal year.
The TDA is also developing updated technical regulations governing standards and requirements, aimed at enhancing the investment climate in the tourism sector.
At the conclusion of the meeting, the housing minister stressed the importance of continued coordination and intensified efforts to drive tourism investment forward and keep pace with rapid sectoral developments.
Egypt aims to increase its hotel capacity to around 500,000 rooms, up from approximately 228,000 rooms by the end of 2024. Under the tourism development plan for fiscal year 2025/2026, the government is targeting tourism investments of about EGP 116bn, representing growth of more than 60% compared with the previous year.
Real estate developers are increasingly turning to hotel projects as they seek recurring and sustainable income streams, rather than relying solely on one-off residential unit sales. Hotels offer diversified revenue—often denominated in foreign currency—helping developers hedge against exchange rate volatility.
At the same time, the licensing of residential units as serviced apartments or holiday homes has emerged as a growing trend, offering higher investment value for both developers and buyers.
Investment activity is concentrated in several key areas, led by the North Coast—particularly Ras El Hekma and its surroundings—which has evolved from a seasonal destination into a year-round tourism hub. In Greater Cairo, especially West Cairo, hotel development has accelerated around the Pyramids and the Sphinx following the opening of the Grand Egyptian Museum. The Red Sea region, notably Nabq, has also attracted investor interest after the government offered large land plots for the development of luxury tourist resorts.
To support hotel development, the government has introduced a range of incentives, including a EGP 50bn financing initiative to fund hotel construction and expansion at concessional interest rates. Authorities have also allowed the conversion of residential, administrative and commercial units into hotel use—without activity-change fees in designated areas—to help address room shortages.
In parallel, sustainability has become a growing priority, with green hotels now accounting for around 37% of Egypt’s existing hotel capacity.
