The Egyptian tourism sector is receiving an unprecedented boost. Tourists’ arrivals increased by over 50% in 2017, and the newly appointed Minister of Tourism, Rania Al-Mashat, has launched a reform program that is expected to further revamp the Egyptian hospitality sector. Experts predict that, as a result, gains will be huge in the construction industry.
As the country gets ready to host a growing number of tourists, investments in new hospitality projects in Egypt amount to approximately USD 7.9 billion in 2018.
According to a recent BNC Intelligence report published by The Big 5 Construct Egypt, the international event for the construction industry set to launch next September in Cairo, nearly 60% of the projects are in the concept and design phases.
“These figures show that there’s a truly healthy pipeline of new hospitality projects expected to come on stream in the next few years,” comments Josine Heijmans, Portfolio Event Director of The Big 5 Construct Egypt.
A USD 380 million expansion of the Four Seasons Resort will be completed by the end of 2018 in Sharm El Sheikh, while the coastal Governorate of Matrouh is developing a USD 270 million Hotel Apartment complex, the Address Resort Marassi at Sidi Abdul Rahman worth USD 150 million, and the Agiba Beach, a project valued USD 135 million.
Leading the list of construction activities, the capital Cairo is set to host the USD 300 million worth Address Hotel in Emaar Square Development in less than two years, a new Crown Plaza Hotel at Arkan Plaza valued USD 300 million in 2021, and the SECON Nile Towers, a USD 131 million investment, by the end of 2018.
Alexandria is also expected to host some of the country’s major developments: the USD 225 million Phase 1 of City Stars Al Sahel at North Coast will be completed by the end of 2019, along with Phase 1 of Hayat Alex Park (USD 124 million).
“Major cities such as Cairo are expected to offer nearly 17,500 branded hotel rooms in the coming year, including Fairmont Pyramids Hotel & Residences and Hilton Garden Inn in Cairo Business Park,” says Ms. Heijmans.
“The Egyptian government is accelerating investments in the tourism and hospitality sector in order to diversify economic activities and increase employment rates. This inevitably opens up huge opportunities in the construction sector, opportunities that both Egyptian and international players are eying.”
According to Mohamed Atef, Trade Fairs Officer of the German-Arab Chamber of Industry and Commerce, Egypt’s unique tourist potential is one of the major factors attracting foreign investors in the country.
“The new investment law will further attract domestic and foreign investment in Egypt as it liberalizes the foreign exchange system and adopts a comprehensive value added tax (VAT) system,” Mr. Atef adds.
In the backdrop of ongoing construction projects worth USD 363 billion, Cairo will host the first Big 5 Construct Egypt exhibition from 18 to 21 September 2018 at Egypt International Exhibition Center.
The largest portfolio of construction events in the Middle East, The Big 5, has identified Egypt as the next place-to-be for construction manufacturers and players from around the globe as the country embarks on huge infrastructure and construction projects.
“There’s a vivid interest in the Egyptian construction sector right now,” confirms Ms. Heijmans. “Some of the largest manufacturers and distributors of building products and materials have signed up important partnership agreements with us, including the international Underwriters Laboratories (UL), the Saudi-based Al Bawani Company, and the Egyptian Sphinx Glass, Ezzsteel, and Al Amal.
“International participation is expected to be huge at The Big 5 Construct Egypt 2018, and Greece has already secured a prominent space becoming our official country partner for this launch edition of the event,” Ms. Heijmans concludes.
One of the world market leaders in equipment for the concrete industry, the German Zenith Maschinenfabrik, will be also exhibiting at The Big 5 Construct Egypt. According to Heiko Boes, the CEO of the company, “Egypt has been a dynamic and growing market for the construction industry for many years.
“We have the impression that the proposed new capital, which is planned to be completed in its first phase between 2020 and 2022, has considerably fueled the demand for building materials.
“Construction companies are now looking for modern machines to increase their production capacity and are ready to invest in new equipment. Egypt is a very important market for us as we expect further growth of the construction sector,” Mr. Boes adds.
The Big 5 Construct Egypt will feature six dedicated product sectors: Plant Machinery and Vehicles (PMV), MEP Services, Building Interiors & Finishes, Building Envelope & Special Construction, Construction Tools & Building Materials, and Construction Technology & Innovation.
Showcasing thousands of innovative products and solutions for the built environment, the event will gather hundreds of local and international suppliers under one roof.
Free educational sessions will also be offered at the show, where regional industry experts will present 40 CPD-accredited workshops on the construction sector's hottest topics.
The full report on Egypt's tourism and hospitality market 2018 is available for download at http://www.thebig5constructegypt.com/Industry-Report-PR-A.