Egypt bans ultra-low hotel prices to force service quality improvements

Egypt is moving away from a market of endless discounts. The Ministry of Tourism has introduced minimum price floors for hotel stays in resorts like Hurghada and Sharm El Sheikh to combat price dumping and force hoteliers to invest in service quality. Hotels that attempt to undercut these limits risk losing their operating licenses. Minimum Pricing Thresholds The government has established strict price boundaries based on hotel ratings. A room in a five-star hotel cannot be sold for less than $50 per night, while the minimum for four-star properties is set at $40 per night. This regulation applies not only to public prices on booking websites but also to private contracts signed with large tour operators. Irina Sokolova, foreign tourism manager: "Market economics cannot be rewritten by decree. For a hotelier, an empty room means direct losses, so during periods of low demand, they will still look for ways to attract customers."