Algeria Boosts Hotel Capacity with New Inaugurations, Eyes Tourism Growth
Image: Algerie Eco
Takeaway
The expansion of Algeria's hotel sector presents opportunities for international hotel chains and investors looking to tap into a growing market. Investors should closely monitor government incentives, infrastructure developments, and Air Algérie's expansion plans, as these factors will significantly impact the risk-reward profile of investments in the Algerian tourism sector.
Algeria's tourism sector is experiencing a boost with the inauguration of several new hotels and the launch of expansion projects, signaling the government's commitment to developing the industry. On Saturday, February 14, 2026, the Minister of Tourism and Handicrafts, Houria Meddahi, conducted a working visit to Béjaïa, where she inaugurated three hotels and inspected other tourism projects. On Friday, February 13, 2026, the Atlantis hotel chain officially opened the Atlantis Alger Aéroport hotel, formerly an Ibis, located in the Bab Ezzouar business center east of Algiers. Also in Béjaïa, Minister Meddahi inaugurated the three-star "Lalla Daouia" hotel in the municipality of El-Kseur, which has a capacity of 45 beds and will create 35 direct jobs.
These developments align with Algeria's broader strategy to diversify its economy and promote tourism as a key sector. The Ministry of Tourism and Handicrafts aims to consolidate the country's position as a premier tourist destination. In December 2025, Minister Meddahi announced the approval of 85 tourism projects expected to create 39,000 new jobs. The government is allocating a significant budget to tourism in 2026 to advance infrastructure projects and support investments. The focus includes strengthening domestic tourism, attracting international visitors, and leveraging Algeria's rich cultural heritage, including its coastline, mountains, and UNESCO World Heritage sites.
Algeria possesses a robust infrastructure network, including over thirty airports and an expanding road and rail system. The country's hotel capacity was estimated at 120,000 beds in 2017, offered by 1,184 hotels. As of December 31, 2024, 727 tourism projects had been registered, with 90 slated to become operational in 2025. Algeria ranked ninth in Africa for hotel development in 2024, with 13 projects representing 2,603 rooms under development. Thermal and health tourism is also a strategic focus, with 282 thermal springs across the country and 40 thermal projects supported by the ministry.
The newly inaugurated hotels and expansion projects are expected to benefit local economies by creating jobs and boosting tourism revenue. The "Lalla Daouia" hotel in Béjaïa, for example, will create 35 direct jobs. The expansion of the hotel sector may attract more international hotel chains and investors, further stimulating growth. A rise in tourism could also positively impact related sectors such as transportation, restaurants, and local crafts.
Looking ahead, Algeria aims to quadruple the number of visitors by 2030 through infrastructure development, hotel modernization, and training programs for tourism professionals. Air Algérie is restructuring its internal routes and strengthening its fleet, with potential new international routes, including a direct route to New York. The government projects hosting four million tourists by the end of 2025, with a goal of eight million by 2028. Investors should monitor government policies, infrastructure developments, and Air Algérie's expansion plans to assess opportunities in Algeria's growing tourism market.