During the "Elevate Egypt: Branded Living and Hospitality" roundtable hosted by Invest-Gate, real estate developers and industry experts underscored the vital role of the hospitality sector in boosting tourism and advancing Egypt's Vision 2030. Discussions centred on integrating well-being and mental health into hospitality and branded residences, alongside the transformative impact of artificial intelligence (AI) and the Internet of Things (IoT) on enhancing luxury accommodations. Deputy Minister of Housing, Utilities, and Urban Communities, Abdelkhalek Ibrahim, emphasized the necessity of integrating Greater Cairo's establishments into the global tourism map. He highlighted the importance of leveraging advanced technologies to ensure resilience and sustainability in hospitality projects while adopting best practices for operational efficiency. His remarks also addressed the development of the North Coast into a global tourism hub, with a particular focus on emerging hospitality and serviced living projects in New Alamein and Ras El Hekma. Transforming New Alamein into a Year-Round Destination A key challenge discussed was the transformation of New Alamein from a seasonal summer retreat into a dynamic, year-round city. The Ministry of Housing's strategies to achieve this goal were central to the conversation. Additionally, the discussion explored initiatives to position New Aswan as a premier medical tourism destination, emphasizing its potential in wellness and therapeutic tourism. Vice Minister of Tourism and Antiquities Yomna Elbahar highlighted real estate investment's crucial role in strengthening the tourism sector, particularly by increasing the supply of serviced apartments that meet ministry standards. She noted that many travellers, especially families, prefer these apartments for privacy and immersive experiences over traditional resorts. She reiterated the ministry's commitment to setting minimum standards and diversifying accommodation options to help attract 30 million tourists annually by 2030. Egyptian Hotels Organization Chairperson Mohamed Ayoub pointed out the significant number of unlicensed serviced apartments, stressing the need for proper regulations. He estimated that 50,000 to 70,000 units could be integrated into the licensed sector if specific requirements are met. However, the costly process of converting residential properties for commercial use remains a key hurdle. ALDAU Development CEO of the Real Estate Division, Ahmed El Nesr, observed a shift in developer priorities toward enhancing living experiences rather than focusing solely on property sales. Branded residences, he noted, ensure superior quality and drive higher customer demand, leading to a 10-20% price premium. Strengthening Egypt's Tourism Infrastructure A Capital Holding CCO Dahlia El Kordy emphasized the indirect marketing power of "trophy properties" and the need for infrastructure upgrades, airport expansions, and improved service provider training to elevate Egypt's tourism landscape. Travco Properties Managing Director and Board Member Omar Abdel Ghaffar advocated for maximizing the North Coast's potential by strengthening infrastructure, particularly desalination plants, to facilitate year-round residency. He also called for the development and promotion of Alamein International Airport to attract more international flights. Prime Hospitality Management Group Founder and CEO Moataz Amin clarified the distinction between Branded Residences and Serviced Apartments. A Branded Residence involves ownership of residential units adhering to international brand standards, ensuring quality for buyers, whereas a Serviced Apartment is a rental property designed for generating annual returns. Vantage Developments Founder and Chairperson Mohamed Abd El Gawad noted that competition among developers has raised product quality, resulting in high-end serviced apartments with strong investment returns. However, he pointed out that most residential units are delivered unfinished, complicating property export efforts. Integrating Hospitality and Real Estate Sectors Kelma Development Consulting CEO Ahmed Youssef El Araby stressed the need for seamless integration between hospitality and real estate sectors rather than treating them as separate entities. He urged the Ministry of Housing to streamline this integration, suggesting government-led joint ventures or usufruct contracts to facilitate hospitality projects. He also called for the creation of a specialized advisory body to guide developers in entering the hospitality real estate market. Margins Developments Chairperson Mohamed Alaasar highlighted the rising prominence of serviced apartments in alignment with Egypt's Vision 2030. Expressing pride in Egypt's unique real estate offerings, he emphasized each location's distinct advantages. He proposed organizing workshops and seminars to educate developers on best practices in the serviced apartment sector and fostering stronger ties with global hospitality brands. Ayoub noted that tourism projects are subject to oversight by 27 entities. In response, Minister of Housing, Utilities, and Urban Communities Eng. Sherif El Sherbini suggested establishing a land bank to meet all necessary project specifications and requirements. Developers advocated for the establishment of a centralized digital platform to enhance investment opportunities and improve access to real estate data. A unified digital system for licensing and regulatory approvals would streamline processes, ensuring investors have accurate and up-to-date sector information. Financial Incentives and Policy Reforms To strengthen Egypt's investment climate, developers called for financing mechanisms that support hospitality investments, particularly serviced apartments. Expanding global marketing efforts for Egyptian real estate and organizing regional investment-focused events were identified as crucial steps to attract foreign investors. Regulatory and bureaucratic reforms remain a pressing concern, with developers pushing for streamlined land allocation and licensing procedures to encourage investment. A standardized model for serviced apartments, developed in collaboration with the government, was seen as essential. Extending developers' payment periods to at least seven years would support cash flow, while reducing tax burdens on entertainment and tourism-related events could further stimulate sector growth. Enhancing Sustainability and Urban Planning Additionally, reviewing technical requirements for hotel projects and implementing flexible yet high-quality standards would grant developers greater operational freedom. Reassessing mandatory hotel room allocations in regions like Ain Sokhna and Hurghada and introducing clear regulations for selling various property types would enhance transparency and market efficiency. Sustained infrastructure development and policy enhancements are essential for long-term sector growth. Strengthening water desalination infrastructure and upgrading airports would improve accessibility, while adopting global hospitality standards, including sustainable practices, would elevate service quality. Prioritizing urban planning for branded residences to align with international benchmarks and stabilizing legislative frameworks to ensure investment continuity were emphasized. Lowering mortgage interest rates was also suggested as a means to encourage greater private sector participation in the market.
