Covid19 has generated significant consequences affecting almost all aspects of life around the globe as a result of its rapid spread. One of the most negatively affected industries is the tourism industry. Some studies have explored COVID-19 impacts on employees in tourism and hospitality sector.  This research aims to investigate the impact of Covid-19 on employees retention in hotels and travel agencies in Egypt. For this purpose, a self-administered questionnaire was used with a random sample of employees in hotels and travel agencies in Greater Cairo. A number of 220 forms were distributed in five star hotels in Greater Cairo, among them 171 forms (77.7%) were completed and valid for analysis. Also, a number of 100 forms were distributed in travel agencies category (A) in Greater Cairo among them 63 forms (63%) were completed and valid for analysis. The research hypotheses were tested through multiple regression using Statistical Package for Social Science (SPSS 25). The initial results show that Covid-19 negatively affected employee retention.