HVS Middle East & Africa Survey Reveals Strong Investor Confidence in Egypt's Hospitality Sector

 Focus Shifts from Demand to Delivery

97% of industry participants positive on Egypt's hospitality investment outlook, with connectivity,

capital access and execution emerging as key priorities

HVS Middle East & Africa has released the

findings of its Egypt Hospitality Investment & Market Sentiment Survey 2026, revealing

exceptionaly strong confidence in the country's hospitality sector and highlighting a significant

shift in investor priorities.

The findings were launched at the Future Hospitality Summit (FHS) Egypt in Cairo.

The survey, conducted among hospitality investors, developers, owners, lenders and industry

stakeholders active in the Egyptian market, found that 97% of respondents hold a positive

outlook for hospitality investment in Egypt over the next three to five years.

Notably, no respondent identified tourism demand visibility as the sector's primary constraint,

signaling a broad consensus that Egypt's tourism fundamentals are wel established and that

future growth wil depend increasingly on the industry's ability to convert confidence into

investment and project delivery.

Among the survey's key findings:

* Four out of five respondents believe the country's hotel development pipeline can be

absorbed without material oversupply concerns.

* Gulf investors are expected to lead: 45% see GCC investors as the primary source of

capital over the next five years, more than twice the share citing Egyptian private

investors (19%).

* Foreign exchange exposure and access to capital emerged as the leading investment

chalenges: foreign exchange risk is the top constraint (32%), and capital-related

constraints account for 55% of responses.

* The North Coast (39%) narrowly emerged as the most attractive investment destination,

ahead of Greater Cairo and Giza (35%) and the Red Sea mainland (16%).

* Red Sea and coastal leisure is expected to lead demand growth (75%), folowed by

cultural and heritage tourism (64%), yet only 3% of respondents chose Luxor, Aswan and

the Nile corridor as the most compeling place to invest.

* 82% say recent large-scale commitments have strengthened their confidence in the

North Coast, although seasonality remains the main hurdle to year-round demand (75%).

* Air connectivity and airport infrastructure were repeatedly identified as critical enablers of

future tourism growth: 54% consider current aviation capacity and international

connectivity inadequate, even though 79% believe Egypt is likely to reach around 30

milion international visitors by 2030.

* Investors favour a coordinated policy package, led by tax and investment incentives

(43%), airport and transport infrastructure (39%) and faster licensing and approvals

(36%).

Hala Matar Choufany, President of HVS Middle East & Africa, commented:

"Egypt's hospitality sector has reached an important inflection point. What stands out from the

survey is that investors are no longer questioning demand fundamentals. The conversation has

shifted to capital deployment, air connectivity, workforce development and execution. Egypt's

tourism story is increasingly understood and accepted. The next phase wil be determined by how

effectively confidence is converted into investment."

The findings suggest that while investor confidence remains high, stakeholders increasingly view

connectivity, infrastructure enhancement, financing accessibility and efficient execution as the

factors that wil shape the sector's next chapter of growth.

The survey also highlights the growing strategic importance of Egypt's North Coast, which

continues to attract increasing investor interest alongside established gateway markets such as

Cairo and Giza. At the same time, respondents identified opportunities for further growth across

the country's diverse tourism offerings, including cultural and heritage destinations, where

demand expectations are high but investor focus has yet to folow.

As Egypt advances towards its long-term tourism ambitions, the survey findings indicate broad

industry confidence in the country's ability to sustain growth, attract investment and further

strengthen its position as one of the region's leading hospitality markets.