Red Sea Resorts And Alexandria, Egypt: How Cities Beyond Cairo Are Powering A Tourism And Hospitality Surge!

Published on December 1, 2025

The Great Pyramids and the Nile River are no longer the only attractions of Egypt. The rate of development in cities outside Cairo, together with the rise in visitors and the hotel industry, has made Egypt a tourist destination. The New Administrative Capital represents the country’s future, while the dynamic beaches of the Red Sea and the Mediterranean are the gateway to the Ancient World. Egypt is not only a country of museums but also a place where people from all over can enjoy both past and present through the modern tourist tapestry that has been woven with its ancient legacy.

Tourist Numbers Surge And Hotels Rush to Catch Up

• The government now expects around 17.76 million visitors by end 2025, rising to 18.56 million in 2026.
• The first half of 2025 alone saw about 8.7 million tourists, a roughly 24 percent jump from the same period in 2024.
• Behind the scenes, the hospitality industry has recorded impressive growth: in the fourth quarter of fiscal year 2024-25, tourism, hospitality, and restaurant services expanded by 19.3 percent, the highest among all economic sectors.

This surge reflects not just pent‑up demand but also renewed investor confidence, better infrastructure, and an ambitious national tourism strategy.

Hospitality Infrastructure: A Rapid Build‑Up

To handle the influx, Egypt is investing heavily in hotel capacity and tourism infrastructure:

• According to a 2025 report, the country leads Africa in hotel development with 143 hotels and nearly 34,000 rooms under development, up significantly from 109 hotels (~26,000 rooms) in 2024.
• The expansion is heavily backed by state incentives: a subsidised programme worth EGP 50 billion aims to help tourism operators expand facilities, particularly in Greater Cairo, Luxor, Aswan, the Red Sea, South Sinai and the North Coast.
• In a major private-sector move, a USD 265 million MoU was signed in 2025 between a real‑estate developer and hotel operator to build new hotels and branded residential units, signalling growing confidence in Egypt as a destination for both short‑term tourists and long‑term investors.

These efforts suggest the country is serious about scaling up capacity ahead of projected growth, with plans to add 18,000 hotel rooms by end‑2025.

Beyond Cairo: Coastal Resorts, New Cities and Cultural Hubs

Red Sea and Coastal Resorts: High Demand, High Occupancy

Resorts along the Red Sea (famous spots like Hurghada and Sharm El Sheikh) remain among the biggest winners. As of 2025, hotels nationwide average over 80 percent occupancy, and busy weeks see many Red Sea resorts nearly sold out.

Such demand is driving coastal luxury developments and prompting major hotel chains to expand aggressively.

New Cities & Urban Development: A 21st‑Century Egypt

Part of Egypt’s strategy is to build fresh, modern urban centres that ease pressure on overcrowded metropolitan Cairo. Through infrastructure upgrades, transport links, and new residential‑hotel complexes, the country aims to create livable, tourism‑friendly alternatives.

Cultural and Historical Tourism Continues to Matter

While beach resorts and modern cities attract many visitors, Egypt hasn’t forgotten its heritage. The mix of culture, history, and modern amenities helps the country appeal to a broad segment of travellers — from backpackers and history buffs to luxury‑seekers.

Government Strategy: Investment, Incentives and Infrastructure

According to the official policy brief of the national tourism authority, Egypt’s development in 2014–2025 has emphasised: optimising infrastructure and services; encouraging investment; improving human‑resource capacities; leveraging technology; and promoting both domestic and international tourism to enhance competitiveness.

Institutional reforms and strategic partnerships, including those with international hotel chains, reflect a long‑term vision that intertwines hospitality growth, cultural heritage preservation, and modern urban living.

What It Means for Travellers and Investors

For travellers: Egypt today offers far more than just ancient monuments. Whether you seek pristine beach resorts on the Red Sea, modern city living, or cultural richness in historic cities, there’s a vibrant new ecosystem waiting.

For investors and hoteliers: The numbers show robust demand, rising tourist arrivals, and strong government support. With hundreds of hotels under development and major private‑sector deals already signed, the hospitality sector presents a promising opportunity for growth.

Looking Ahead: Potential and Challenges

The ambitious development, from modern cities to waterfront resorts, could redefine what it means to travel in Egypt. If hotel expansion keeps pace with demand and infrastructure investments continue, Egypt could well meet its target of doubling tourist numbers over the next few years.

But with rapid growth come risks: maintaining service standards, ensuring sustainable tourism, balancing heritage preservation with modern development, and avoiding over‑dependence on a few resort zones.

If handled with foresight, this metamorphosis could make Egypt not just a historical destination, but a 21st‑century tourism powerhouse, blending ancient heritage, modern convenience, cultural depth and coastal leisure.