For the second time in a year, Egypt raises the minimum room rate in 5-star hotels

For the second time in a year, Egypt raises the minimum room rate in 5-star hotels
For the second time in a year, Egypt raises the minimum room rate in 5-star hotels

Cairo, Egypt (CNN)– The Egyptian government decided, for the second time in a year, to raise the minimum price for accommodation in hotel establishments by an additional $10 in 4 and 5 star hotels in order to address the phenomenon of burning prices, develop the Egyptian tourism revenue, in addition to raising the quality of hotel services. Representatives of the tourist chambers welcomed the decision, praising its impact on the reputation of Egyptian tourism globally, as well as its coincidence with the improvement in hotel occupancy rates in Egypt during the winter season.

According to a statement by the Egyptian Cabinet, the Ministerial Committee for Tourism and Antiquities decided to set a minimum price for accommodation in hotel establishments, by raising the minimum value to $50 for five-star hotels, $40 for four-star hotels, $30 for three-star hotels, and $20 for two-star hotels. And $10 for one-star hotels, and the committee determined the implementation of the decision as of May 1, 2022, with the exception of the governorates of Luxor, Aswan and New Valley, and the cities of Taba and Nuweiba, where it will be implemented as of November 1, 2022.

The deputy and tourism expert, Amr Sedky, said that the goal of setting a minimum price for accommodation in hotel establishments is to address the phenomenon of price burning, to which some hotels have tended to decrease tourist occupancy during the last period, as well as to preserve the tax rights of the state. Because hotels are economic establishments, the state must obtain a return from the privileges it obtains, including residing in coastal areas, noting that the Ministry of Finance was notified of the decision so that tourist hotels would be held accountable based on the minimum set by the government.

For the first time, the Egyptian government issued a decision on a minimum fee for accommodation in hotel establishments, on April 23, at a price of $40 for five-star hotels and $28 for four-star hotels. The decision came into effect early last month.

In exclusive statements to CNN in Arabic, Sedky referred to several previous attempts to set a mechanism to control accommodation prices in hotel establishments to address the phenomenon of price burning, until the government intervened by setting a minimum price, without imposing a unified price in order to preserve the principle of freedom of investment, adding: “It is not right for us to reach The prices of Egyptian tourist destinations are to be the lowest in the world, in light of the ingredients we have.”

And I knew in Egypt the phenomenon of burning prices in hotels, which is that some hotels offer offers at cheap prices in exchange for accommodation to attract the largest number of reservations by tourism companies. A minimum price for accommodation to be consulted, according to the improvement of market mechanisms.

Amr Sedky stressed the importance of setting a minimum price for accommodation in hotel establishments in providing good tourism services by appointing and training the best cadres, and spending on periodic maintenance to develop facilities and provide a level worthy of Egyptian tourism, pointing at the same time to the improvement in occupancy rates in tourist hotels, which reached To 100% in Hurghada and Sharm El Sheikh hotels.

According to the data of the Ministry of Tourism, Egypt received about 3.5 million tourists during the period from the first of January to the end of June 2021, and the total revenues amounted to between 3.5 to 4 billion dollars, with an average spending per tourist of 95 dollars per night.

Tharwat Ajami, head of the Chamber of Tourism Companies in Luxor, agreed with him on the importance of setting a minimum price for accommodation in hotel establishments in order to reduce the phenomenon of price burning, and to guarantee the state’s tax rights from the revenues of hotel establishments, in addition to developing tourism services and products in Egypt, noting that the decision targets more. hotels in Hurghada and Sharm El Sheikh; Because most of the tourist facilities in Cairo, Luxor and Aswan do not tend to reduce their prices.

The hotels of tourist destinations overlooking the Red Sea and southern Egypt are witnessing a high turnout during this time of the year, known as the winter season of tourism in Egypt, which starts from October until April, and the current season is witnessing a recovery in the number of tourists as a result of a number of countries lifting decisions banning movement Flying to Egypt, led by Russia, which decided on July 8 to cancel the ban on charter flights to Egypt after suspending it for 5 years, following the Sharm el-Sheikh plane accident. Two months later, Britain took a similar decision.

In exclusive statements to CNN in Arabic, Ajami explained that the minimum price for accommodation in hotel establishments is an indicative price for hotels, whose prices are determined based on supply and demand.

Ammari Abdel Azim, former head of the Tourism and Aviation Division at the Chambers of Commerce, said that the decision to raise the minimum prices for hotel rooms for the second time this year aims to serve Egyptian tourism and prevent the decline in prices of the Egyptian tourist destination, explaining that Egyptian tourist destinations are sold abroad at a low price, which affects On the segment of incoming tourism to Egypt, but with an increase in the minimum, it will maximize the value of the Egyptian tourist destination, and raise its income by attracting a segment of tourists who wish to visit Egypt.

An official statement of the Ministry of Tourism stated that Egypt is seeking, during the coming period, to launch some electronic advertising campaigns to promote tourism to Egypt during the winter tourist season in some of the main markets exporting incoming tourism to Egypt, as well as to cooperate with major tour operators to launch some joint promotional campaigns, according to an official statement by the Ministry of Tourism. tourism.

In exclusive statements to CNN in Arabic, Abdel Azim suggested that the state expand the establishment of more one- or two-star hotel rooms or hotel apartments to be an alternative to increasing prices in the future and to attract middle-income tourists, after studying all markets to meet the requirements of various segments of tourists.

 
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