A $7 billion hotel supply glut caused by a shortage of hotel beds has forced Egypt to suspend sales of hotel supplies, Egypt’s state news agency reported Tuesday.
The hotel supply shortage has forced the government to delay or cancel several major hotel projects, such as construction of hotels and condominiums, the agency said.
The World Bank said in a report last year that the government is likely to need $4 billion to meet its hotel demand in the coming years.
Egypt’s tourism industry has been struggling since the fall of Hosni Mubarak, who was deposed in a military coup in 2011.
Tourism in Egypt had declined more than 30 percent since 2012, according to data compiled by the World Travel & Tourism Council.
Egypt is one of the most popular destinations for Americans visiting Egypt and the United States, with a number of top hotels.
But many Egyptians are not taking advantage of the country’s abundant natural resources, including a significant amount of natural gas and a massive petroleum reserves.
Egypt also has a backlog of more than $30 billion in outstanding debts.
The country’s new president, Abdel Fattah el-Sisi, promised to address the countrys energy problems.
The government has been cracking down on the smuggling of oil and gas through the Sinai Peninsula, which borders Israel and the Palestinian territories.