The findings were revealed in a recent Market Snapshot on MENA Hotels published by global real estate services company, Colliers International.

According to the March report, which looked at Egypt Tourism and Hospitality Market within Colliers International’s Arabian Travel Market Series, growth was anticipated to continue this year.

Ongoing development, according to the report, would be due to the Egyptian government’s investments in tourism, including a new national museum and international airports being opened in the country.

Colliers International also mentioned Egypt’s current stable socio-economic climate.

The report noted there had been 7.2 million visitors to Egypt in 2017, a 33.3 percent growth on 2016 when numbers plummeted by 41.9 percent compared to 2015 to reach 5.4 million. In 2015, there were 9.3 million visitors to Egypt, a 5.8 percent drop on 2014.

According to the same report, Egypt’s key source market in 2017 was Europe, attributed to the appeal of red sea destinations including Sharm El Sheikh, Hurghada and Luxor.

The more limited number of European visitors to Cairo were in the capital for corporate reasons.

Citing figures provided by macroeconomic, industry and financial market analysis research firm, BMI Research, Colliers International said 72.7 percent of the visitors to Egypt in 2017 were from Europe. This number was followed by 16.5 percent from the Middle East, 3.8 percent from North America, 3.6 percent from Africa and 3.4 percent from Asia Pacific.

A bright outlook sees arrivals to Egypt anticipated to increase at a compound annual growth rate of 3.1 percent from this year to 2021. The African and North American markets are expected to drive growth.

North American growth over the period is anticipated to reach 3.9 percent, African growth 3.8 percent, Middle East growth three percent, and European growth 1.6 percent.

When it comes to accommodation, supply is heavily weighted towards the five-star segment. According to Colliers International, this accounts for just over 60 percent of total room stock.

The report also noted that over 90 percent of the five-star hotel supply is affiliated with an international brand, although these are not as present within the market’s four-star segment. Here, they make up just 40 percent of total room count.

Just over 2,000 keys are included in the three-star segment, none of which are affiliated with an international brand.

Corporate demand from regional visitation drives the Cairo market, with the MICE segment and other frequent independent travellers accounting for the second highest proposition.

When it comes to the capital city, the leisure segment is mainly visible in hotels situated near the Pyramids which often come as part of wider tour to other culture-rich destinations including Luxor and Aswan.

Colliers International went on to suggest investors were anticipated to realise the potential of unsatisfied demand at midmarket hotel sector level, as this had yet to reach a level of maturity within Cairo.