Sharm el Sheikh

Tourism Tattler - - BUSINESS & FINANCE - For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Egypt_-_Shar­m_el_Sheikh

Sharm-el-Sheikh has not had the same for­tunes as Cairo. Oc­cu­pancy levels plunged in Sharm El Sheikh fol­low­ing the crash of a Rus­sian civil­ian aero­plane in early Novem­ber 2015. A sub­se­quent ban on travel and can­cel­la­tion of flights to the re­gion from Rus­sia and var­i­ous Euro­pean coun­tries se­verely im­pacted per­for­mance in the Rea Sea des­ti­na­tion. De­spite chal­leng­ing trad­ing, val­ues im­proved slightly, al­though Sharm re­mains in last place on the HVI.

Sharm-el-Sheikh's oc­cu­pancy is sig­nif­i­cantly im­pacted by the vi­o­lent events that hap­pened within 2015/16. The oc­cu­pancy rate dropped be­low 50%, lead­ing the val­ues down by 27.3%. How­ever, whilst this mas­sive drop in val­ues did no good for the ho­tel busi­nesses, it rep­re­sented an at­trac­tive in­vest­ment op­por­tu­nity. In­vestors can buy at a low price and gain from the cash on sale rather than from the pure op­er­a­tion of the ho­tel.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.