The Tourism Development Authority reprices stalled Red Sea hotel plots

The Tourism Development Authority is taking back land from developers in Marsa Alam, South Sinai, and El Quseir over stalled hotel projects — and repricing the recovered plots at sharply higher rates, several investors tell EnterpriseAM.

Even developers with partially completed projects are being forced to repurchase the undeveloped portions of their plots at a new market rate of USD 210 per sqm to keep their land — a significant jump from the historical cap of around USD 130 per sqm.

Developer pushback: Investors argue they already absorb the cost of building basic infrastructure — roads, power, water — which the new rate doesn’t account for. They claim currency volatility and cost shocks have derailed their timelines, calling for additional incentives — like tax exemptions and more flexible implementation timelines — to support the completion of their projects.

A fee, not a repurchase: Investors prefer a “grace period fee” instead of facing a full repricing. “The price for purchasing a one-year extension is up to USD 5k, which is an acceptable figure compared to paying for a repricing of mns of meters,” head of the South Sinai and Marsa Alam Investors Association Atef Abdel Latif tells us.

Why it matters: The southern Red Sea is an underutilized asset, Abdel Latif tells us. This move suggests the authority wants to maximize financial return on state-owned lands while forcing developers to speed up construction — especially as major new projects like the Marassi Red Sea project and Bernice and Marsa Alam airports reshape the region’s tourism profile.