LOCAL INDUSTRY PROFESSIONALS ARE TAKING STRIDES TO HELP THE COUNTRY STAND BACK ON ITS FEET.
“On the macro scale, yes, indeed the recent events have negatively impacted the flow of tourists to Egypt, and the Sinai Peninsula in specific is terribly challenged by travel bans and airlift cuts,” explained Jens Freise, vice president, marketing and sales, Orascom Hotel Management, elaborating on the effect the latest circumstances had on the country’s hospitality field.
Travel warnings against Egypt from Russia and the UK not only affected the Sinai, but also Hurghada’s hotels have suffered from the lack of arrivals, Freise added, noting that while properties in El Gouna primarily welcome customers from Germany, Austria and Switzerland, the company saw a decline from the UK market as well, though it did not dramatically harm the overall performance.
Tarek Mousa, chairman, Egypt & Beyond Travel, confirmed that upon the Russian airplane incident as well as due to Russia and the UK halting flights to Egypt, striking consequences have been felt across the industry.
“Both the Russian and the UK markets have dropped significantly; in Sharm El Sheikh many hotels have closed down and some are running at around 15 – 20 percent occupancy, which is not sustainable to run a business,” he commented.
The popular resort destination has seen some volatility over the previous years, while occupancy levels in 2015 falling eight percent compared to 2014, according to data revealed by Colliers International.
Attesting to this, Mohamed Kamel, director of sales, Renaissance Sharm El Sheikh Golden View Beach Resort, said that unfortunate happenings at the beginning of the winter season caused a negative climate affecting business and causing foreign guest numbers to decline – a trend being witnessed to this day.
Much like the Sharm El Sheikh market, Hurghada has been hurt by the multiple travel bans and restrictions imposed by the European Union. However, Colliers International’s Egypt Full Year 2015 Review suggested that the location remains popular amongst local tourists who now acount for the majority of hotel bookings.
MAKING UP
Indeed, Ibrahim Mohamed, managing director, Perfect Tours, disclosed that in order to lure back tourists, the agency is focussing on domestic travellers, offering lower rates for Egyptians heading to Sharm El Sheikh, Hurghada, Luxor and Aswan.
The local as well as the Arab segments are very important at this crucial time for Egypt, nonetheless, they are perceived as a temporary solution, with Mousa commenting that the two markets are seasonal and do not have the potential to make up for the lower all-year-round international visitor figures.
Tarek ElSherif, director of business development, Conrad Cairo, agreed that these two types of business are very seasonal, with each exhibiting different behaviours.
“The domestic/local business works well during vacations and long weekends [...], while the Arab business has specific time during both Eids and partially in the summer vacation [time] and they mostly prefer Cairo,” he added.
Mousa further analysed the profile of regional and Egyptian tourists saying, “Arabs will go out more to experience local restaurants and cafés, but most of them will not participate in tour activities; the majority of the domestic travellers will require three-star hotels, [and only] some of them will participate in tour activities.”
Even though there is still a long way to recovery, Moustafa Abaza, director of sales and marketing, Mövenpick Hotel & Casino Cairo – Media City, sees the bright side to having a seasonal clientele coming from the Middle East,.
“Indeed, they are important due to numerous factors, such as the high room rate. They usually come as individuals rather than groups which results in longer stay durations, they use all the hotels services [and] they have different requirements from the international markets.”
Aside from the local and regional markets, Abaza turned the attention towards corporate and MICE guests who support business at the capital’s properties.
ElSherif corroborated that in contrast to seaside resorts, Cairo is doing fairly well in terms of occupancy due to meetings and corporate clients.
“The key segment that has tremendous potential is the MICE business.
With the growing role of Egypt in the Middle Eastern economy and politics, there are more and more meetings and conferences taking place in Egypt, and this would be a great segment to grow, which will in a way drive volume not only for business, but also combined leisure [visits],” he supported.
