Published December 15th, 2011 - 09:45 GMT via SyndiGate.info
As Christmas and New Year’s time approaches, hotels in the Red Sea
and even Cairo, usually bustling with tourists around the holiday
season, are expecting occupancy rates to be almost 50 percent of what
they were last year.
“The occupancy rate at the moment is drawing
between 20 to 25 percent. We expect it to grow up to 60 percent during
Christmas and New Year’s,” said Saad Hossam El Din, head of
reservations at Grand Hyatt in Sharm El-Sheikh, one of the most popular
Red Sea destinations.
The tourism sector has been hit hard since
Egypt’s January uprising toppled president Hosni Mubarak, and the
upcoming weeks may help recoup some losses. However, as bookings go so
far, it might not be much of a boost. Last year at Christmas, Sharm
El-Sheikh’s Grand Hyatt saw more than 80 percent occupancy, according
to Hossam El Din.
Sol Y Mar, a prominent resort in the city of
Hurghada, which is just 80 kilometers from Sharm El-Sheikh, also
expects to see low numbers. “We are more of a business hotel, meaning
we deal more with corporate executives coming to visit the area. We
usually expect to see almost 100 percent during Christmas or New
Year’s, but this year we are at about 60 or 70 percent. It is a very
low turnout this year,” Mahmoud Farghaly, reservations agent at Sol Y
Mar, told Daily News Egypt.
These months, however, with elections
taking place over several stages and after the November’s violent
clashes, the festive season is looking gloomy.
“Christmas and New
Year’s will be very unlucky in Egypt this year,” said Moataz Sedky,
deputy director of tourism at Travco Travel. “We believe today
everything is on pause because of elections. People want to know if
there will be violence so everyone postponed their plans and ideas for
choosing their holiday destination,” he added.
The company, which
owns and operates about 22 Nile cruise ships and is used to having full
occupancy around this season, is currently only operating nine
ships. “Mostly all bookings are old. We don’t have any new bookings,
the new bookings are very minor and they are all last minute bookings
received through our webpage,” Sedky told DNE. Cultural tourism, which
includes such cruise tours and mainly attracts visitors from Europe,
has taken a dive this season, Sedky said.
Tourism bookings for
the company’s operations in the Red Sea have also plummeted this season
and due to elections, they will not be getting any better.
“The
Red Sea is mainly dependent on charter flights from European cities,
English visitors, for example rank as number one tourists coming to the
Red Sea, especially for Travco Group’s hotels. They usually fly first
to Sharm El-Sheikh with a frequency of about 60 flights per week,” said
Sedky. “This year, there are about 30 flights a week from the British
market.”
British clients wish to increase their volume up to at
least 50 flights, but they are monitoring the political and security
situation carefully, he added.
Travco Group currently owns about
48 hotels and resorts across Egypt. Around the holiday season last
year, the company recorded high revenues with full occupancy
rates. “Last year around this time, it was a booming,” said Sedky, but
this year the game plan has changed.
“Most of the people staying
in the Red Sea often like to visit Cairo by land, but we postponed
these trips around this time to avoid any problems that might take
place in the elections,” said Sedky.
Similarly, Dalia Maged, head of
ticket sales at Shahin Tours in Cairo, told DNE that due to the violent
clashes that began in mid-November, just before the elections, many
clients traveling to Cairo cancelled their flights.
“Many of the
people coming to Cairo for Christmas or New Year’s have also cancelled
their flights due to last month’s events,” she told DNE. “Flights to
Luxor, Hurghada, Sharm El-Sheikh or Aswan, however, are still booked,
but overall we saw about a 75 percent decrease in flight bookings.”
Flights
bookings for Egyptians traveling outside of Egypt have been unaffected,
Maged said. Despite Travco’s sales hit, Sedky said they were “luckier”
than most. “We have strong assets, strong hotels and we are dealing
with major international hotel operators. We also belong to the Germany
company, World of Tui so we have not suffered as others in the
industry,” said Sedky.
Travco has been offering special deals to
cope with the recent economic turmoil. “Right now, we are seeing more
short-term clients from Romania or Serbia who are making last minute
bookings and taking advantage of the offers we have, but these are not
our regular clients,” said Sedky. “Our regular clients are mainly from
Britain, Germany, or Russia.”
Sedky also said it helps that Sharm
El-Sheikh, and the Red Sea in general, were never cities where European
countries issued travel bans, unlike Cairo. "Russia banned the Red Sea
for a short period a few months even after the revolution, but there
were talks with our country’s prime minister at the time and he
convinced them to remove it. Germany and England, however, did not ban
any parts of the Red Sea," he added.
This year, Egypt expects to
earn about $9 billion from tourism, down by a third on a year earlier.
Last year, the country collected $12.5 billion in tourism revenues,
Hisham Zaazou, senior assistant to the tourism minister, told
Reuters. “We started the year with a drop of 80 percent, then it got
better through the year,” Zaazou was quoted in Reuters saying. “We
expect around 30 to 35 percent less revenue than last year, which means
it is going to be around $3.5 billion to $4 billion less, so we are
speaking about a figure around $9 billion,” he added. Like many in the
tourism sector, Sedky hopes that the outlook for business and tourism
in Egypt will change after the elections and as the security situation
stabilizes.
When asked about his expectations for the parliament,
for which the Muslim Brotherhood’s Freedom and Justice Party and the
Salafi Al-Nour Party are leaders in the elections, Sedky said whoever
is in power cannot risk harming the vital tourism revenues. “It is not
about a change in policies that the Muslim Brotherhood or Al-Nour will
impose,” he said. “I believe the problem is with the media, it seems
that they are not very professional in handling such issues, and
statements that goes abroad creates panic and worry.”
COMMENTS
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