Egypt has taken a significant step to support its growing tourism sector by introducing new regulations for holiday homes. With tourist numbers reaching record highs—15.78 million visitors in 2024 and a 25% jump in arrivals in early 2025—the country faces a pressing need for more accommodation options. The Ministry of Tourism and Antiquities has responded with a new legal framework designed to encourage investment, ensure quality, and bring more transparency to the short-term rental market, Zawya said.

A Legal Framework for a Booming Market

The new regulations, issued in March 2025, set out clear standards for licensing holiday homes. For the first time, property owners and operators can formally register their units—whether a single room, suite, or villa—provided they are located within approved tourist areas or upscale residential communities. The aim is to ensure that all holiday homes meet minimum requirements for safety, amenities, and quality, benefiting both guests and the broader tourism industry.

From a legal perspective, this is a welcome move. Previously, many holiday rentals operated informally, which created risks for both guests and owners. Now, the process has been streamlined: owners must submit documentation online, comply with health and safety standards, and obtain a Touristic Eligibility Certificate from the Ministry. The government has also waived fees for converting properties from business to touristic use, making it easier for investors to enter the market.

Why These Changes Matter

For property owners, these regulations bring much-needed clarity. Compliance is now straightforward, and meeting the standards can enhance a property’s value and appeal to international guests. Owners are required to keep digital guest records and pass regular inspections, which helps maintain high service levels and builds trust with visitors.

For investors, the new framework opens up fresh opportunities. Holiday homes are expected to cover up to 75% of Egypt’s current shortfall of 200,000 hotel rooms, especially in regions like the New Valley and Aswan where informal rentals have been common. The Ministry is also developing a centralized “investment opportunities bank” to make it easier for developers to find and invest in tourism projects.

The Broader Impact

These changes are part of a larger strategy to position Egypt as a top global destination. By setting high standards and simplifying the licensing process, the government aims to attract 30 million visitors annually by 2031 and double the number of available hotel rooms. The opening of the Grand Egyptian Museum and improved air connectivity are expected to further boost tourism and increase demand for quality accommodation.

Conclusion

Egypt’s new holiday home regulations mark a turning point for the country’s tourism and real estate sectors. For property owners and investors, the message is clear: now is the time to ensure your properties meet the new standards and take advantage of the opportunities this growing market presents. As always, our law firm is available to guide you through the licensing process and help you navigate the evolving legal landscape.

For tailored legal advice on holiday home regulations or any other real estate matter, please contact Wassim Attorneys Law Firm.