Khaled Zaki of IHG Hotels and Resorts Discusses Sharm El-Sheikh’s Growth, Sustainable Tourism, and Hotel Expansion Plans at WTM 2025 – Travel And Tour World

Report on IHG Hotels & Resorts’ Sustainable Development and Expansion in Sharm El-Sheikh

Executive Summary

This report details the strategic initiatives of Intercontinental Hotels Group (IHG) in Sharm El-Sheikh, as presented by Khaled Zaki at the World Travel Market (WTM) 2025. The focus is on significant hotel expansion, a deep commitment to sustainable tourism practices, and the alignment of these efforts with the United Nations’ Sustainable Development Goals (SDGs). The strategy combines economic growth with environmental stewardship, supported by strong governmental partnerships, positioning Sharm El-Sheikh as a leading sustainable tourism destination.

Strategic Expansion and Economic Impact

Hotel Development Plan

IHG is undertaking a major expansion in Sharm El-Sheikh, which involves the transformation and development of two key properties. This initiative is designed to meet growing tourism demand and enhance the region’s hospitality infrastructure.

• Development of a Crowne Plaza resort, adding 500 keys.
• Development of a Holiday Inn resort, adding 900 keys.
• A total increase of 1,400 keys to IHG’s portfolio in the region.

Contribution to SDG 8: Decent Work and Economic Growth

The expansion directly supports SDG 8 by promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

• Job Creation: The construction and operation of new resorts will generate significant local employment opportunities.
• Economic Growth: By increasing accommodation capacity, the project boosts the tourism sector, a primary contributor to Egypt’s national income.
• Sustainable Tourism: The development promotes sustainable tourism that creates jobs and promotes local culture and products.

Enhancing Destination Appeal Through Diversification

Multifaceted Tourism Offerings

Sharm El-Sheikh’s appeal is being broadened beyond a traditional beach destination to attract a wider range of tourists. The region’s unique natural and cultural assets are central to this strategy.

• Nature and Adventure: Attractions include private coral reefs, desert safaris, hiking, and the Ras Muhammad preserved area, a key site for birdwatching.
• Leisure and Relaxation: The destination remains a premier location for sun-seekers with its beaches and clear waters.
• Cultural and Religious Tourism: Its proximity to historical and holy sites provides a significant draw for cultural heritage tourism.

Alignment with SDG 11: Sustainable Cities and Communities

This diversification strategy aligns with SDG 11 by making the region inclusive, safe, resilient, and sustainable.

• Safeguarding Heritage: The focus on natural and cultural sites strengthens efforts to protect and safeguard the world’s cultural and natural heritage.
• Sustainable Urbanism: Promoting diverse tourism activities helps manage tourism flows and supports sustainable regional development.

Commitment to Environmental Stewardship and Sustainability

Eco-Friendly Operations and Certifications

A core component of IHG’s strategy in Sharm El-Sheikh is the integration of sustainable practices into all hotel operations, with a clear goal of minimizing environmental impact.

• Green Key Certification: Actively working towards achieving this international eco-label for the tourism industry.
• Carbon Footprint Reduction: Adherence to IHG’s corporate targets for general managers to reduce carbon emissions.
• Resource Management: Implementation of policies for the efficient use of energy and water and effective waste management.

Alignment with Environmental SDGs

These initiatives demonstrate a strong commitment to several key environmental SDGs.

1. SDG 12: Responsible Consumption and Production
   • Achieving Green Key certification promotes sustainable production and consumption patterns in the hospitality sector.
   • Efficient resource management directly contributes to the sustainable management of natural resources.
2. SDG 14: Life Below Water
   • The preservation of the resort’s private coral reef is a direct action to conserve and sustainably use marine resources for sustainable development.
3. SDG 15: Life on Land
   • Protecting the natural beauty of the shores and mountains, including areas like Ras Muhammad, supports the conservation of terrestrial ecosystems and biodiversity.

The Role of Strategic Partnerships for Sustainable Goals

Government and Corporate Collaboration

The success of Sharm El-Sheikh’s tourism sector is heavily reliant on the synergistic relationship between private enterprises like IHG and governmental bodies. The Egyptian government provides significant support, recognizing tourism as a vital part of the national economy. This is evidenced by the hosting of high-profile international events, which enhances the city’s global standing as a destination for peace and diplomacy.

Contribution to SDG 17: Partnerships for the Goals

The collaboration is a prime example of SDG 17, which emphasizes the need for partnerships to achieve sustainable development.

• Public-Private Partnership: The joint efforts of IHG and Egyptian authorities create a robust framework for advancing sustainable tourism.
• Multi-stakeholder Collaboration: This partnership model is essential for implementing long-term sustainability projects and ensuring the preservation of natural assets for future generations.

Future Outlook

The future of Sharm El-Sheikh’s tourism industry is projected to be one of sustainable growth. The combination of ambitious, high-quality hotel expansion and a foundational commitment to eco-friendly practices positions the region for long-term success. By integrating the principles of the Sustainable Development Goals into its core business strategy, IHG is not only enhancing the visitor experience but also ensuring the preservation of the destination’s unique natural and cultural heritage.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Sharm El-Sheikh’s tourism development, led by IHG Hotels & Resorts, addresses several Sustainable Development Goals (SDGs) through its focus on economic growth, environmental responsibility, and strategic partnerships.

1. SDG 8: Decent Work and Economic Growth
   • The article highlights tourism as “one of the main national income sectors in Egypt.” The planned expansion, adding 1,400 hotel keys through new Crowne Plaza and Holiday Inn resorts, directly contributes to economic growth and implies the creation of new jobs in the hospitality sector, promoting sustained and inclusive economic growth.
2. SDG 12: Responsible Consumption and Production
   • The article explicitly mentions IHG’s commitment to “sustainable tourism” and “eco-friendly practices.” Efforts towards “efficient use of resources, waste management,” and achieving “Green Key certification” are direct actions aimed at ensuring sustainable consumption and production patterns within the tourism industry.
3. SDG 13: Climate Action
   • The commitment to “reducing carbon footprints” and setting clear targets for general managers to “reduce carbon emissions” demonstrates a direct engagement with climate action. These measures are part of IHG’s broader strategy to minimize its environmental impact and combat climate change.
4. SDG 14: Life Below Water
   • The article emphasizes the natural beauty of Sharm el-Sheikh, particularly its “stunning beaches, crystal-clear waters, and vibrant coral reefs.” The mention of a “private coral reef” and the “beautiful underwater ecosystems” of Ras Muhammad, coupled with a commitment to preservation, connects directly to the goal of conserving and sustainably using marine resources.
5. SDG 15: Life on Land
   • The article highlights the importance of preserving the region’s terrestrial ecosystems. It mentions that Sharm el-Sheikh attracts “hikers, adventure seekers, and desert safari enthusiasts” and is a haven for “birdwatchers” due to Ras Muhammad, a famous “preserved area.” The stated responsibility “to preserve it for future generations” aligns with protecting terrestrial ecosystems and biodiversity.
6. SDG 16: Peace, Justice and Strong Institutions
   • The article notes Sharm el-Sheikh’s role as a “city of peace,” referencing its hosting of a “recent peace summit” with 22 heads of state. This demonstrates the region’s contribution to promoting peaceful and inclusive societies by providing a venue for high-level diplomatic events.
7. SDG 17: Partnerships for the Goals
   • The success of the tourism sector is attributed to a “strong partnership with local and government organizations.” Khaled Zaki underscores the “crucial role of government partnerships” and the support received from “local and national authorities,” which is a clear example of the public-private partnerships needed to achieve sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article, several specific SDG targets can be identified:

1. Target 8.9 (under SDG 8): “By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.”
   • The entire initiative described in the article—expanding hotel capacity while focusing on sustainability and leveraging the region’s unique natural and cultural appeal—is a direct implementation of this target. The expansion plan for 1,400 keys is designed to boost a key economic sector and create employment.
2. Target 12.b (under SDG 12): “Develop and implement tools to monitor sustainable development impacts for sustainable tourism…”
   • The hotel’s pursuit of “Green Key certification” is an example of implementing a tool to monitor and verify its commitment to sustainable practices. This certification serves as an internationally recognized standard for eco-friendly tourism operations.
3. Target 13.2 (under SDG 13): “Integrate climate change measures into national policies, strategies and planning.”
   • While not a national policy, IHG’s corporate strategy of setting “clear targets for its general managers… to reduce carbon emissions” and minimize environmental impact reflects the integration of climate change measures into its business planning and operations.
4. Target 14.2 (under SDG 14): “By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts…”
   • The article’s emphasis on preserving the “private coral reef” and the “beautiful underwater ecosystems” of Ras Muhammad, combined with the overall commitment to sustainability, points to efforts to protect these vital marine habitats.
5. Target 15.5 (under SDG 15): “Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and… protect and prevent the extinction of threatened species.”
   • The recognition of Ras Muhammad as one of the “world’s most famous preserved areas” and a key resting place for “migratory birds” highlights the importance of protecting this specific habitat. The stated responsibility to “preserve it for future generations” aligns with this target.
6. Target 17.17 (under SDG 17): “Encourage and promote effective public, public-private and civil society partnerships…”
   • The article explicitly mentions the “crucial role of government partnerships” and the “strong partnership with local and government organizations” as drivers of success for the tourism sector in Sharm el-Sheikh, perfectly illustrating this target in action.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions or implies several indicators that can be used to measure progress:

1. Indicator for Target 8.9:
   • Number of new hotel keys: The article specifies the addition of “1,400 keys in total” through the new Crowne Plaza (500 keys) and Holiday Inn (900 keys) resorts. This is a direct quantitative measure of tourism infrastructure growth.
   • Number of jobs created: Although not explicitly stated, the creation of 1,400 hotel keys directly implies the generation of a significant number of jobs in construction, hospitality, and related services.
2. Indicator for Target 12.b:
   • Achievement of Green Key certification: The article states the hotel is “working towards achieving Green Key certification.” The successful acquisition of this certificate is a clear, verifiable indicator of adherence to sustainable tourism standards.
3. Indicators for Target 13.2:
   • Reduction in carbon emissions: The article mentions IHG has set “clear targets… to reduce carbon emissions.” Progress can be measured by tracking the percentage reduction against a baseline.
   • Reduction in energy and water consumption: The article notes that IHG’s goals include “reducing energy and water consumption across all properties.” This provides a measurable indicator of resource efficiency.
4. Indicator for Target 14.2:
   • Health of coral reef ecosystems: The preservation of the “private coral reef” and the “underwater ecosystems” can be monitored through ecological surveys measuring coral health, biodiversity, and water quality.
5. Indicator for Target 15.5:
   • Status of protected areas: The continued preservation and management of “Ras Muhammad” as a protected area is an indicator.
   • Population counts of migratory birds: The article mentions the “vast number of migratory birds” that visit. Monitoring these populations can serve as a bio-indicator for the health of the terrestrial and coastal ecosystems.
6. Indicator for Target 17.17:
   • Number and nature of public-private partnerships: The existence of the described partnership between IHG (a private entity) and the “local and national authorities” (public entities) is itself an indicator. The scope and effectiveness of this collaboration can be further assessed.

4. Table of SDGs, Targets, and Indicators

Source: travelandtourworld.com