The Egyptian government has issued comprehensive regulations and requirements for licensing vacation apartment units. This groundbreaking decision, announced Sunday, seeks to introduce a novel style of lodging for tourists, ultimately supporting the nation’s ambitious goal of attracting 30 million visitors within the next six years.
Tourism experts hail the initiative as a strategic step towards providing high-quality accommodation that aligns with Egypt’s prominent position as a global tourist destination. The new licensing framework is also expected to generate valuable foreign currency revenue for property owners, thereby stimulating growth in both real estate exports and overall tourism earnings.
The Ministry of Tourism has officially defined vacation apartment units as “any unit consisting of at least one room, a suite, or a villa located in a standalone building or part of a building, equipped with essential services, and designated for accommodating Egyptians or foreigners, provided that its location is within a tourist area or a distinguished residential complex.”
According to an official statement, a process will be established to legalize the status of existing vacation apartment units, adhering to regulations and requirements designed to ensure the necessary standards of quality, safety, security, and comfort for tourist accommodation, guaranteeing their readiness to welcome visitors.
This initiative is a crucial component of Egypt’s broader strategy to double its hotel capacity to accommodate the anticipated surge in tourist numbers. The government has already implemented various incentives and financing initiatives to encourage investment in the tourism sector and has prepared a detailed plan showcasing key investment opportunities for business leaders.
Magdy Sadek, a member of the Chamber of Tourism Companies at the Egyptian Federation of Tourism Chambers, emphasized the necessity of this step. “Egypt aims to increase the number of inbound tourists, and achieving this requires doubling our hotel capacity,” he stated. “Allowing the licensing of vacation apartments, similar to many major tourist destinations like France and Spain, offers a distinguished accommodation option for tourists befitting Egypt’s status. Simultaneously, it generates foreign currency for property owners, positively impacting real estate exports and tourism revenues.”
Record-Breaking Tourism Figures Underpin the Need for Expansion
This new regulatory framework comes on the heels of impressive tourism figures for Egypt. Official data reveals that the country achieved a record-breaking 15.7 million tourists in 2024, up from 14.9 million in 2023, despite regional geopolitical challenges. Furthermore, Egypt’s tourism revenues exceeded $14 billion in the first 11 months of the previous year, marking a significant economic contribution.
Sadek, in exclusive statements to CNN Arabic, noted that the Ministry of Tourism has meticulously defined the regulations and requirements for licensing vacation apartments to guarantee the provision of high-quality tourism services. He also advocated for legislation that would exempt owners of these units from taxes to incentivize the growth of this sector, ultimately aiming to increase the country’s hotel capacity from the current 220,000 rooms to between 500,000 and one million rooms to absorb the targeted growth in tourism.
Official data indicates that Egypt currently has 220,000 hotel rooms, with an additional 7,200 rooms added in 2024, 55% of which represent new capacity. The government aims to reach 432,000 rooms by 2028.
Sadek highlighted the pivotal role of vacation apartment units in augmenting inbound tourist numbers. He explained that increasing tourism in Egypt hinges on two key factors: first, doubling hotel capacity through diversifying accommodation options, including vacation apartments suitable for family travel; and second, increasing the capacity and number of flights to Egyptian airports to accommodate a larger influx of tourists and establish Egypt as a major air transport hub in the region.
In a testament to this growing connectivity, Cairo International Airport recorded a record-breaking daily operational rate on Sunday, exceeding 102,000 passengers in a single day for the first time since its inauguration in 1963, with a total of 682 flights, according to an official statement.
Ensuring Quality and Formalizing the Sector
Hossam Hazaa, a member of the Egyptian Federation of Tourism Chambers, echoed the significance of this new licensing system. He stated that the Ministry of Tourism’s move to regulate vacation apartment units for the first time in Egypt will contribute to a faster increase in hotel capacity to meet the rising demand from tourists while ensuring the provision of high-quality tourism services. Moreover, it will provide an additional income stream for property owners. He also stressed the importance of offering incentives, tax breaks, and fixed fees for these units to integrate them into the formal economy.
Official reports indicate high occupancy rates in government-owned hotels across various governorates and tourist cities during the recent Eid al-Fitr holiday, reflecting the increasing appeal of Egyptian destinations to both domestic and international tourists. Notably, the Cleopatra and Cosmopolitan hotels in downtown Cairo, belonging to the EGOTH company, and the Safir Dahab hotel achieved 100% occupancy.
Hazaa further elaborated that vacation apartment units represent an innovative form of hotel accommodation that can help address the shortage of hotel rooms in some tourist cities, especially during peak seasons. This will enable the reception of a larger number of tourists while maintaining a high standard of service befitting Egypt’s tourism reputation. He pointed out the existence of vacation apartment units in areas like the Giza Pyramids, and their licensing would provide excellent service and attract more tourists, positively impacting inbound tourism figures.
He also noted that Arab tourists, particularly families, are likely to be drawn to vacation apartment units, which can offer cost savings compared to hotels and provide the option of staying together in an apartment equipped with all the necessary standards for high-quality hotel accommodation. Hazaa emphasized the need to establish regulations to prevent price undercutting and ensure adherence to providing a luxurious hotel standard.
The Egyptian government’s proactive approach to regulating vacation apartments signifies a forward-thinking strategy to enhance its tourism sector, cater to evolving traveler preferences, and solidify its position as a leading global destination.
