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EGYPT: Niche Oportunities

Egypt has been long visited by travellers, traditionally for its archaeological sites prior to the rapid development and influx of tourists in the 1990s.

While the North African destination offers a broad selection of tourism products and serves to a wide range of visitors needs, from those seeking sun and relaxation to culture vultures wanting to learn about the country’s rich history, the shift away from mass tourism has further enabled niche segments to shine.

With a decline in leisure visitors, it is the country’s unique offerings which make it stand out amongst its competitors.

Unequivocally distinctive, the abundant Egyptology in Upper Egypt clearly remains a big draw, but as William observed, tourists are also attracted to diverse religious tourism opportunities, while nature lovers seek the country’s protected national parks, such as Saint Katherine Protectorate, and expansive desert boasting rich varied fossils and geological fortunes.

El Gouna, with five-star properties and a landing strip for private jets, along with EQI’s uniquely located eco-lodges, are considered niche, thus appealing to affluent holidaymakers, proven success stories within the current climate.

Demand for Nile cruises and desert safaris is on the rise, cited Mousa, adding that it is great for business, as such clients tend to be high spenders.

The high-end market is becoming an important source of income for the local industry, with the development of luxury addresses such as Raffles Citystars Sharm El Sheikh due in 2019, W Sharm El Sheikh expected in 2020 as well as The St. Regis Cairo anticipated in 2017.

The prospects for luxury is being capitalised on, as Abaza explained, “We participate as much as possible in travel fairs and events targeting those very clients.”

Due to the Red Sea’s outstanding reputation amongst scuba divers, including Ras Mohammed National Park, the area remains highly popular amongst aficionados.

Labban explained that this stunning, expansive natural resource is actively being promoted to diversify options for global travellers.

Furthermore, other specialist sports groups are also being targeted, on top of divers, Friese described El Gouna as popular with the kitesurfing community.

With 10 active and under development Crystal Lagoons projects in the country, this trend is likely to continue.

Noting that the Egyptian Crystal Lagoons offerings will focus on the leisure market, Carlos Salas, regional director, Middle East, Crystal Lagoons, said, “[The developments will] have a plethora of sporting usages, such as swimming, kayaking, snorkelling and sailing.”

However, the sports tourism sector includes more than just water sports, Abaza mentioned football camps as being one of Egypt’s latest tourism trends.

Moreover, Eid added that Gorgonia Beach Resort’s patrons include beach tennis trainers and players, who are building competitions and championships through the country’s six international beach tennis fields.

MEETING POINT

One of the biggest growing segments in Egypt is MICE, and according to data released by Hotstats, hotels in Cairo recorded a year-on-year rise in residential conference of 77.4 percent in September due to the city’s growing events calendar.

This trend has been observed across the country. As reported in Colliers International’s Egypt Quarterly Review & Forecast Q2 2016, hoteliers in Hurghada are shifting their focus on the growing MICE demand, while an increase in Alexandria’s corporate sector was also underscored.

“There has been a shift in the purpose of visits [...] to attending conferences and events,” illustrated Labban.

This view was echoed by Assem, who explained that the Egyptian government is running new projects with multinational companies, an endeavour certain to attract business visitors.

Demonstrating adaptability to the market, Darwish disclosed that SUNRISE Resorts & Cruises is upgrading its corporate facilities to appeal to MICE groups.

ADJUSTING FOR THE FUTURE

Industry professionals are well aware they cannot rely on traditional methods to lure in tourists.

Assam highlighted the significant role that online travel agencies play in advertising to European and emerging markets as well as high spenders.

Expanding on the essential role of an online presence, Sherif Shahein, vice president, Baron Hotels and Resorts, elaborated, “Egyptian tourism is now following a new digitalised trend which is going more digital and paying more attention to the e-marketing and e-commerce industry.”

Darwish stressed that last minute bookings are the reality of today, adding that additional low-cost flights would be a much needed boost to the industry.

Underscoring the importance of remaining flexible, Darwish advised, “We should adapt ourselves for different markets.”

Recognising the potential of the Middle Eastern market, Labban explained, “We are focussing on the expanding Gulf and Arab market by offering constant promotions, marketing campaigns and tailoring our services to fit their tastes.”

That is not to say that the hope of European guests returning has been abandonned.

“We are working closely with our tour operator partners to guarantee the smooth operation of business once the European flights return,” enthused Labban.

Abdin underlined that following the arrival of UK flights to Luxor, the segment is already getting back to normal.

Stakeholders remain hopeful; STR’s September 2016 Pipeline Report revealed that some 5,800 rooms across 17 hotels are currently in construction in Egypt.

With so much to offer the future is indeed optimistic and as Mousa concluded, “[...] Many travellers are hungry to visit Egypt after six years of downturn. [...]”