Hotel occupancy rates dip in Egypt

EGYPTIAN TOURISM: Local hotels impacted by global economic downturn like (almost) everywhere else. (Getty Images)

Occupancy rates at Egyptian hotels have dipped to an average of about 70 percent as the global economic slowdown hurts tourism in the country, tourism minister Zoheir Garrana said on Saturday.

A slump in tourism, which employs about 10 percent of Egypt's workforce, is among factors that could drag economic growth this year to its lowest in half a decade.

Egyptian investment bank EFG-Hermes has said occupancy could fall below 50 percent this year and the number of tourists drop by 18 percent to 10.5 million.

Garrana said the government was targeting a decline of no more than 12 percent, without giving further details.

Egypt is home to some of the world's most famous historic sites, such as the Pyramids of Giza. It also boasts beaches and coral reefs along the Red Sea. The majority of visitors come from European countries such as Russia, Britain, Germany and Italy.

Finance minister Youssef Boutros-Ghali said last week that economic growth could drop to as low as 4 percent this fiscal year, its lowest since 2003-2004, on declining revenues from the Suez Canal and tourism. (Reuters)

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