Psychological contracts are important because they establish the expectations, rights, and obligations of both employees and employers. By clearly defining the roles and responsibilities of both parties, psychological contracts help to create a more positive and productive work environment. In addition, psychological contracts can help to prevent misunderstandings and conflict by providing a clear framework for communication and interaction. This research presented psychological contract and organizational commitment as the main variable effect on performance and productivity of employees in Luxor and Aswan hotels from the managers' point of view as the dependent variable. The primary data was collected using the survey supported by the help of a standardized questionnaire from 176 managers who work in Luxor and Aswan hotels. The collected data was analyzed using SPSS software (23). A five-point Likert scale was used to test the attitude of the participators toward research variables. The main result of the research was that there was a significant influence of presented psychological contract and organizational commitment as the main variable effect on performance and productivity on performance and productivity of employees working in Luxor and Aswan hotels. The research recommended that the need for hotel establishments in Luxor and Aswan abide by the psychological contracts they provide to employees in order to keep employee loyalty and enhance productivity.