EGYPT: Rixos Hotels To Open Rixos Hurghada Makadi Bay In 2020

Rixos Hotels has marked a major milestone in its Middle East expansion strategy after signing an agreement to manage its largest all-inclusive luxury resort on the Red Sea coast of Egypt.

Since Accor acquired a 50 per cent stake in the company, Rixos has identified opportunities including partnering with the Eastern Company for Investment and Touristic Development to takeover and renovate an existing beachfront property.

Scheduled for completion in 2020, it will be re-launched as the Rixos Hurghada Makadi Bay, a 1,636-key mega resort.

The stand-out property will boast a stunning location in a secluded bay on the Red Sea, just south of Hurghada, a hotspot for scuba diving, family getaways and golf breaks.

Resort highlights will include individual villas, an extensive indoor and outdoor spa, fitness facilities, kids clubs, a waterpark, beach lounge, large conference centre, wide-ranging food and beverage options and an expansive entertainment area with an amphitheatre.

It is expected to become the preferred destination for discerning travellers and corporate group business from key source markets such as Europe and the CIS.

This marks a pivotal moment in the growth story of our brand, bringing to market our largest resort globally and offering our most comprehensive range of facilities and unique and dynamic entertainment experiences yet, said Fettah Tamince, founder and chairman of Rixos Hotels.

We are delighted to partner with the Eastern Company for Investment and Touristic Development to launch this flagship project, which will set a new benchmark for luxury all-inclusive all-exclusive resorts in Egypt and the wider Middle East.

Rixos Hurghada Makadi Bay represents the first project of its kind since Accor joined forces with Rixos in 2017, strengthening the brand’s footprint to four resorts in Egypt where its already operates properties in Alamein and Sharm El Sheikh and eight across the Middle East.

Mahmoud El-Sayed Moussa El-Sharkawy, chief executive, Eastern Company for Investment and Touristic Development, said: Our vision is to transform Makadi Bay into the leading leisure and entertainment destination on the Red Sea.

In this respect, the Rixos brand, with its successful one-of-a-kind hospitality concept and proven expertise operating in Egypt’s resort market, makes strategic sense.It’s the perfect fit.

The renovation plan of the existing development in Makadi Bay will be phased in two stages, each spanning a year, with phase one already underway and including the addition of wings and facilities to uplift the hotel in line with Rixos brand standards.

This unique takeover opportunity strengthens the Rixos offering in Egypt’s Red Sea Riviera and highlights the strong collaboration Accor has established with Rixos team to develop the brand regionally and globally, said Mark Willis, chief executive, Accor Middle East & Africa.

We would like to thank all the parties involved in this landmark project, which offers the right mix of elements in terms of scale of inventory and facilities to embody the Rixos business model and to boost awareness of its exclusive luxury offering in key regional and global markets.

Phase two of the renovation plan will start as soon as the property opens its doors and will include a 23,000-sqm water park, as well as upgrades to the remaining hotel inventory.

Established in 2000, Rixos Hotels is a Turkey-based luxury brand with a global portfolio of 25 hotels in seven countries, 17 of which are operated as waterfront resorts and welcomes more than one million guest annually.

The chain embodies traditional Turkish hospitality and features unique health treatment clubs and entertainment experiences for guests of all ages.

Tourism Observer

EGYPT: Go Bus Ticket Goes Up Starting Eid holiday

Go Bus tourist transport company is set to increase its prices by EGP 10 on all trips starting from the Eid holiday, before raising the prices again to offset the losses it incurred following the flotation of the pound that hiked prices of spare parts and maintenance costs.

Maher Nassif, chairperson of the company, said his company had given up 50% of its profits this current year following the flotation, as it could not raise the prices with the same value of the flotation in order to keep its clients.

He added that the company will raise ticket prices by EGP 10 for all trips starting next week.

Nassif said that the price per ticket from Cairo to Hurghada or Sharm El Sheikh start from EGP 95 to EGP 280, while the price from Cairo to Marina ranges between EGP 130 and EGP 160. The price from Cairo to Marsa Matrouh is set at EGP 120.

Ticket prices from Cairo to Alexandria begin at EGP 55 to EGP 70, and EGP 115 to EGP 185 from Cairo to Dahab.

Nassif pointed out that the company will have 20 additional trips on Eid days to Marsa Matouh, the North Coast, Hurghada, and Sharm El-Sheikh due to the high demand for reservations, especially to the Marsa Matrouh governorate, which alone, will see the addition of six more trips.

He noted that the company has launched its Cairo-Dahab line and plans on opening new lines to other tourist destinations, especially as the seasonal lines are only active for specific times, such as the North Coast and Marsa Matouh.

Nassif also said that the company has added 25 new MCV buses with investments of EGP 100m last week.

He added that the company is negotiating with Saudi Arabia to transport pilgrims into the country next season and is currently expecting a reply from the kingdom after the end of the current season.

Nassif stressed that the tourism transport industry is currently suffering from the high cost of buses, including imported models and locally assembled ones, next to the surge in prices of spare parts, which hinders renewing the fleets of the companies.

EGYPT: Individuals And Families Boost Hotel Occupancy In Hurghada, Sharm El Sheikh

Egypt's promotional campaigns abroad remain unsatisfactory, fail to bring significant numbers of tourists from Arab world or other countries.

For hotels and tourist facilities in Sharm El-Sheikh and Hurghada, Eid Al-Fitr will bring celebrations and a 60% increase in bookings.

Nagy Erian, former vice head of the Egyptian Hotel Association (EHA), said that there is a 60% increase in bookings in cities, which coincides with the Eid Al-Fitr celebrations.

He explained that the increase only takes place during the week of Eid and goes back to declining to normal levels, so they race to offer services that attract guests, such as concerts and shows.

He revealed that the increase in prices start at 30% as a result of the Egyptian pound’s flotation.

Kamel Abo Ali, chairperson of a group of Sharm El-Sheikh and Hurghada hotels, said that there is a great recovery in the bookings of hotels during Eid.

He pointed out that 30% of Hurghada and Sharm El-Sheikh visitors are Arabs, while domestic tourism represents 70%.

A number of hotels and tourist facilities in the two cities have been developed in the last period and will be reopened in Eid Al-Fitr to attract the largest number of customers.

He stressed that Egypt’s promotional campaigns abroad are still unsatisfactory and could not bring the targeted numbers of visitors, whether from the Arab world or other countries.

He asked to delay any support programmes of domestic tourism until the end of the year, as citizens travel during the summer months to various tourist areas, especially resort cities.

Ahmed Balbaa, chairperson of Balbaa Group for Hotels, said he has reopened a number of hotels to benefit from the time of holidays and the expected tourist flow coming from abroad.

He pointed out that the high occupancy rates will not exceed the Eid Al-Fitr week, where all Egyptians will return to work again and all the occupancy rates will decline again.

He explained that prices should increase because of the increase in input prices after the flotation of the Egyptian pound, which caused prices to increase by 100%.

He stressed that there are a number of demands to revive the tourism movement, mainly allocating the management of airports in tourist cities to specialised international companies and exempting the sector from financial commitments for two years.

Balbaa demanded to drop any legal actions against the sector regarding its dues in order to give hotels and tourist facilities the chance to train new staff and pay salaries from the Emergency and Crisis Fund for a year and then announcing it to reassure the employees.

The hotel booking agent at Viking Sharm El-Sheikh said that there is a boom in booking rate during the Eid Al-Fitr holiday, up to 70% by Egyptians, Arabs, and foreigners.

He pointed out that room prices reached EGP 3,000 because of the flotation.

EGYPT: Advice On Holidays To Sharm El Sheikh, Cairo And Luxor

EGYPT used to be one of the most popular holiday destinations in the world but its tourism industry has been rocked by continued warnings over terror.

The Foreign Office advises against all but essential travel by air to or from Sharm el Sheikh and Thomas Cook has cancelled holiday bookings there for the winter of 2017/2018 and Summer 2018.

What to do if you’re thinking about visiting Egypt.

In recent years the country has been rife with political turmoil, violent protests and terrorism attacks.

The number of tourists visiting has decreased dramatically following the revolution, attacks on foreign journalists and government advice not to go there.

The Foreign and Commonwealth Office (FCO) advice is against all but essential travel by air to or from Sharm el Sheikh after a flight from Sharm el Sheikh to St Petersburg crashed in North Sinai.

There is no FCO advice against travel to Cairo, Alexandria, the tourist areas along the Nile river (including Luxor, Qina, Aswan, Abu Simbel and the Valley of the Kings) and the Red Sea resorts of Sharm el Sheikh and Hurghada.

Israel’s counter-terror agency had suggested its nationals in the region leave and advised them against travelling there over summer due to fears of an imminent ISIS attack.

The FCO say “terrorists are very likely to try to carry out attacks in Egypt”.

Their website states: “You should be vigilant at all times, avoid crowded places and follow the advice of the Egyptian authorities and your travel company, if you have one.”

Nine tourists were killed in September 2015 in the Western Desert when they were mistakenly attacked and killed by the Egyptian military who thought they were terrorists.

A Croatian man was kidnapped and killed by ISIS in July 2015 in the western desert near Cairo.

And in June 2015, terrorists tried to attack Karnak Temple in Luxor – the first attack in nearly 20 years – but were stopped by police.

If you are in Egypt, the website urges to keep updated on news revolving the country and take advice from authorities, hotels and tour operators.

They advise to stay away from demonstrations, protests and large gatherings and to leave immediately.

According to the FCO there is a “high threat from terrorism in Egypt”.

The website states: “The main threat is from extremists linked to Daesh-Sinai. You should be vigilant at all times, avoid crowded places and follow the advice of the Egyptian authorities and your travel company, if you have one.”

The FCO advise against all travel to the Governorate of North Sinai where the Egyptian armed forces are conducting operations against extremist groups and there are frequent reports of attacks.

The FCO advise against all but essential travel to the Governorate of South Sinai, with the exception of the area within the Sharm el Sheikh perimeter barrier, which includes the airport and the areas of Sharm el Maya, Hadaba, Naama Bay, Sharks Bay and Nabq. However, the FCO advise against all but essential travel by air to or from Sharm el Sheikh.

The FCO also advise against all but essential travel to the area west of the Nile Valley and Nile Delta regions, excluding the coastal areas between the Nile Delta and Marsa Matruh.

There’s a risk that tourists at high profile sites like the Giza Pyramids may be confronted aggressively for money or business, even while travelling by car, or taxi. Visitors using a pre-booked guide, or taking an organised tour to visit the Giza Pyramids are likely to face fewer difficulties.

There have been a number of attacks in Cairo mainly targeting government and security targets.

Visitors are told to exercise extreme caution in all border areas.

GOV.UK say it’s “generally low”, but over the years expatriates have been targeted and crimes committed including armed robberies, muggings, sexual assaults, rapes, break-ins and car-jackings at gun and knife-point.

They are more likely to take place in areas popular with expatriates, including during the daytime and they target four-wheel drive cars especially, while muggings have also happened in taxis.

In 2016, the British Embassy responded to 3 cases of rape and sexual assault against British nationals in Egypt.

It’s advised not to be the last person to travel on a microbus and to take great care when travelling alone. Always use hotel safes and watch out for bag snatchers and pickpockets.

If something happens, then report it to the Egyptian police immediately or you won’t be able to seek a prosecution.

Road accidents are rife due to poor road conditions and dangerous driving.

Road accidents killed almost 16,000 people in Egypt in 2011 and it’s advised to avoid independent road travel outside main cities and resorts at night.

Buses aren’t too much safer either and there have been a number of fatal bus crashes in recent years involving tourists.

The FCO also say there is a threat of kidnapping, particularly in remote desert areas.

Again, there are many fatalities in recent years.

Suspect devices have been on trains and at train stations and you should remain on guard, especially on the Cairo-Alexandria line.

EGYPT: Israel Advises Tourists To Check Out Of Sharm el Sheikh Over Terror Threats

Egypt is likely to be subject to an ISIS terror attack in the near future according to Israel, which has warned tourists in the Red Sea resorts to leave immediately.

What does this mean for tourists?

Israel has warned that it believes an ISIS terror attack is imminent in Egypt’s Red Sea resorts, and is advising citizens to leave the area immediately.

Israelis have also been warned to cancel all future travel plans to the area.

“We don't want to cry wolf, wolf,” Eitan Ben-David, the head of Israel's counter-terror bureau, said. “We really believe that the threat is serious.”

The Red Sea resorts include tourist destinations such as Sharm el Sheikh, Luxor and Hurghada.

These are popular resorts with British holidaymakers for winter sun, and while demand has dropped off since prominent terrorist attacks in 2015 and last year, thousands still visit every year.

The Foreign and Commonwealth Office (FCO) has not updated its advice in response to Israel’s claims that a terror threat is imminent.

Although it advises against all travel to the Governorate of North Sinai and all but essential travel to the Governorate of South Sinai, it specifically excludes the Red Sea Resorts.

The FCO says: “The tourist areas along the Nile river including Luxor, Qina, Aswan, Abu Simbel and the Valley of the Kings and the Red Sea resorts of Sharm el Sheikh and Hurghada aren’t included in the areas to which the FCO advise against all but essential travel.”

Rasha Azaizi, director of the Egyptian State Tourist Office in the UK, said: "Egypt is and has always been open for business and 2017 will be a year of major growth and recovery. Tour operators, like Thomas Cook, are reporting a pump up in sales.

"As in every country in the world, the security measures in Egypt are very strict. As the terrible events in London last week have shown, terrorism is a global phenomenon and we all must be vigilant."

British visitors are still warned not to fly into Sharm el Sheikh after a plane from Sharm to St Petersburg, Russia, crashed in 2015.

Russian authorities stated that the crash was caused by an explosive device on board the plane.

The FCO says: “As a precautionary measure, we are advising against all but essential travel by air to or from Sharm el Sheikh.”

When asked about whether the threat level in Egypt had increased, an FCO spokesperson said: “FCO Travel Advice is kept under constant review.”

Frank Brehany, MD of HolidayTravelWatch, said: "Whilst tourism has essentially stayed away from Egypt, we must understand their reasons for doing so, whilst offering sympathy and understanding to those who rely on that tourism.

"It is not in my view the role of UK holidaymakers to be simply a ‘commodity' in the promotion of tourist trade between the UK and Egypt; that can surely only come when all the right measures and conditions are in place to guarantee their safety and indeed demonstrate that they not only work but that there is stability in any difficult destination."

The threat of terrorism is currently labelled as “high” in Egypt.

Germany, Russia But Not UK, Allow Their Airlines To Fly To Sharm el Sheikh again

World Travel & Tourism Council and the World Tourism Organisation have added their voices to calls on the UK government to lift the current ban on UK-based airlines flying to Sharm el Sheikh.

In a letter to UK prime minister Theresa May, WTTC president David Scowsill and UNWTO general secretary Taleb Rifai stressed the importance of resuming operations to the Egyptian coastal resort as the current travel advisory is having devastating effects on the country’s economy and social stability.

The ban has been in place since a Metrojet airline flying from Sharm el Sheikh to St Petersburg crashed in the Sinai Desert in October 2015.

They letter read: “Tourism is vital to Egypt’s economy and social peace, contributing 11 per cent of the country’s GDP and 2.6 million in jobs in 2015.

“The reduction of visitors has created huge employment losses.

“The country’s biggest concern is how the lack of employment opportunities, especially for young men and women, has instilled a desperate disposition and thus vulnerability to radicalisation or to fleeing on a refugee boat.”

Egyptian authorities have taken significant measures to step up the level of security not only in the airport but in the surrounding area as well, argued the trade bodies.

These improvements now meet the safety standards as indicated by the UK department for transport.

All other countries, including Germany and Russia, have allowed their airlines to start flying to Sharm el Sheikh again.

They letter concluded: “It is devastating to see the impact the current UK travel advisory has on Egypt and on the young workforce in particular.

“We call on the UK government to review the advisory and allow commercial aircraft to fly to Sharm el Sheikh and thereby help restore the country’s tourism sector’s GDP and employment provision.”

EasyJet Explains Losses

Terror attacks in Sharm el Sheikh, Paris and Brussels, combined with a sliding pound, pushed easyJet into the red in the first half of the year.

The airline today announced a £24 million pre-tax loss for the six months to the end of March, compared with a £7 million profit for the same period of the previous year.

Revenue per seat fell by 6.6% to £51.29 and total costs per seat, including fuel, fell 5% to £51.98.

During the winter, the airline suffered an adverse foreign exchange impact of £33 million. If sterling had remained strong, it would have made a profit of £5 million.

Chief executive Carolyn McCall remained bullish in the face of the first-half loss, saying: "EasyJet has delivered a robust financial performance during the half year despite the well-publicised external events.

"Underlying consumer demand has been strong with UK beach traffic providing a healthy start to the half and easyJet's biggest-ever ski season~helping~to deliver increased passenger numbers and higher revenue during H1.

"Consumers have enjoyed lower fares, which have decreased by 6% year-on-year, the second successive year of falling fares, as the benefits of lower fuel costs are passed on to passengers. Active cost control by the airline has helped maintain margins.

"This performance is a clear demonstration of the strengths of easyJet's unique combination of Europe's leading network coupled with friendly service, low fares, and digital and data leadership.

"We are confident that over the full year we will again grow passenger numbers, revenue and profit. As a result of easyJet balance sheet and the Boards confidence in the future success of the business, the annual dividend payout ratio will increase by a quarter to 50% subject to AGM approval."

Forward bookings are in line with last year but, taking into account the early Easter and the effects of terrorism in Brussels, easyJet expects third-quarter revenue per seat to decline by around seven percentage points.

It said revenue per seat at constant currency for the second half of the financial year will decrease by low to mid-single digit percentage points.

Cost per seat at constant currency including fuel is expected to decrease by around 5% for the full year.

The airline is expecting to make a further saving on its fuel bill of between £85 million and £90 million for the second half of the financial year, compared to the six months to September 2015, but currency exchange rate movements are likely to cost the airline an additional £20 million.

EGYPT: Egypt To Lure Back Tourists Within Six Months

Egypt's Minister of Tourism has unveiled a six-point plan designed to win back tourists within six months.

But the plans make no reference to security concerns that have led to UK operators cancelling their Sharm el Sheikh programmes and scaling back their operations to Hurghada and other tourist hotspots.

Overseas visitor numbers to Egypt fell dramatically by 40% in the first four months of 2016, compared with two years ago.


Announcing the '6x6 Tourism Impact Plan', His Excellency Yehia Rashed said he hoped it would 'revive the fortunes of the critical tourism sector'.

"My one and only goal is to bring huge numbers of tourists back to Egypt," he said.

"To do this we need concerted action and partnership with Egyptian and international tourism stakeholders. The 6x6 Tourism Impact Plan is all about action that brings together the priority areas of Egyptian tourism, providing support and enhancements as we move forward."

The six themes are:

- Working with international tourism partners to restore success

- Working in partnership with Egypt's national carrier, EgyptAir, to develop new destinations, and to support charter and low cost airline companies in bringing more tourists to Egypt

- Enhancing Egypt's tourism infrastructure by supporting investors and innovating with new ideas

- Raising the bar by meeting the highest international standards through upgraded product and service levels at tourist facilities

- Working to bring foreign direct investment to Egyptian tourism

- Developing the growing trend in Egyptian tourism of sustainable eco-friendly accommodation, transportation, and activities.

The Tourism Minister admitted the six-month time frame was 'very ambitious'.

"But I am also ambitious for our tourism sector. I want to see positive action and for that action to have an immediate impact. 6x6 allows us to focus our energies on the most important elements," he said.

Egypt's tourism has been severely hit since amid security fears.

The UK's Department for Transport ordered UK airlines to cancel regular services to Sharm el Sheik last November after it was found that a bomb that brought down a Russian holiday jet in the Sinai had been smuggled on board at Sharm airport.

A group linked to Islamic State (IS) said it bombed the plane, which had just taken off from the airport.

Egypt insists it has since stepped up security at its airports and at its Red Sea resorts, with extra security staff, sniffer dogs, CCTV cameras and X-ray machines.

But the UK Foreign and Commonwealth Office has not changed its advice.

Thomas Cook and Monarch Airlines have cancelled flights to Sharm for this summer.

EasyJet has also cancelled its flights to Sharm from Gatwick, Manchester and Luton for the summer, but is hoping to resume flights from Stansted as soon as the UK government says it is safe to do so.

Thomson has cancelled most flights to Sharm until the end of September, but it is hoping to relaunch weekly flights from Gatwick and Manchester on May 26 if it gets the government go-ahead.

BA flights to the resort have been cancelled until June 30.

Thomas Cook Cancels Summer Departures To Sharm el Sheikh

Thomas Cook has cancelled all departures to the Egyptian resort of Sharm el Sheikh until at least October 31st.

The tour operator had previously said the security situation in the Red Sea resort would see all holidays cancelled or postponed until May 25th.

However, with no change to the Foreign & Commonwealth Office advice with regards to travel to Sharm el Sheikh airport, Thomas Cook took the decision to extend the black out.

A statement read: “We appreciate that this may be frustrating for our customers who have been looking forward to their holiday and we would like to assure them that we are doing our upmost to ensure they are still able to enjoy a Thomas Cook holiday. “

Customers who are due to travel to Sharm el Sheikh before the end of October are able to cancel or amend their holiday to another destination free of charge.

At the same time, customers who wish to re-book an alternative summer 2016 holiday are being offered free amendments to an alternative Thomas Cook holiday of their choice, paying only any difference in price.

Thomas Cook is individually contacting customers whose bookings are affected, prioritising those due to travel soonest.

PERU: British Airways Adds Only Direct Flight From Gatwick To Lima

From Summer 2016 travellers will be able to fly direct to Lima, Peru’s capital courtesy of British Airways putting making this South American country more accessible.

The three times a week service in the summer months will operate a three-cabin British Airways Boeing 777, with the route starting from May 4, 2016, and offering holiday-makers and business travellers the only direct flights between London and Lima.

Year-round prices start from £765 for those flying in World Traveller, £1,185 in World Traveller Plus and £2,549 for those relaxing in fully-flat Club World seats, and all fares include taxes and charges.

Lynne Embleton, British Airways’ managing director at Gatwick said:

With the world-famous Inca Trail and the incredible citadel of Machu Picchu, there’s nowhere quite like Peru. Its rich cultural heritage make it one of the most popular places in South America to visit and explore.

It is great to be the only airline to offer direct services between London and Peru. Lima is a fantastic gateway to some of the most dramatic places to visit in South America and will also provide a new link for British business seeking to invest in Peru’s growing market.

Lima is the latest destination to have been launched by British Airways and follows hot on the heels of Costa Rica, which was announced as the airline’s latest new route from Gatwick earlier this month.

Other new holiday-friendly routes started this year from Gatwick by British Airways include Cagliari, Madeira and Seville, with flights due to start soon to Sharm El Sheikh, Valencia and Vienna.

British Airways Flys To Sharm El Sheikh

British Airways starts Sharm El Sheikh service.British Airways entered the Egyptian market from London Gatwick (LGW), with its first route to the North African country from the UK airport – namely to Sharm El Sheikh (SSH).

It does however fly to Cairo on a daily basis from London Heathrow. Life on the airport pair is not going to be easy, with 20 competing weekly frequencies from Monarch Airlines (eight), Thomson Airways (seven), easyJet (three) and Thomas Cook Airlines (two).

The twice-weekly (Mondays and Thursdays) service, which began on 14 September, will be flown by the oneworld carrier’s 162-seat A320s. From 24 October, weekly flights will be increased to three, with the addition of a Saturday rotation.

Colm Lacy, Head of Commercial Gatwick for BA said: “We’re really pleased to add another route to our 2015 portfolio, bringing our total short-haul network to 49 routes and 19 long-haul.”

Still to launch for the airline from Gatwick in 2015 are routes to Vienna (from 17 September) and Valencia (from 6 November).

ETHIOPIA: Addis Ababa Hotel Rates In Africa

A survey of prices of international grade hotels in selected major African cities, produced by hospitality research firm STR Global ahead of the Africa Hotel Investment Forum (AHIF), has revealed that Addis Ababa is the most expensive place for a good night’s sleep.

The average rate in US$ (constant currency) for a hotel room in the first six months of this year in Addis Ababa was $231.78/ night. This compares with $215.75 for a room in Lagos, $144.76 in Nairobi, $122.30 in Cape Town, $105.73 in Casablanca, $103.54 in Cairo, $72.90 in Johannesburg and $70.70 in Sharm El Sheikh.

With the price of a hotel room in Nairobi almost double that in Jo’berg, and the room rate in Addis is 60% more expensive than Nairobi, why are prices so different?

Thomas Emanuel, Director of Business Development, STR Global, says: “A great deal of the reason for the difference in rates across major African cities is simply supply and demand.” Addis Ababa has a shortage of top quality hotels. However, with the Ethiopian economy growing at a rapid rate of more than 10% per annum for the whole of the last decade, with more conferences coming to the city by virtue of its status as the seat of the African Union, and with Ethiopian Airways on a similar growth trajectory to the country thanks to new routes and increased passenger numbers, there is a high demand for premium hotel rooms. By comparison, Johannesburg is a long-established, sophisticated international city, with a large number of 5-star hotels and a competitive market for accommodation.

Africa Table ALooking at how hotel prices have changed over the past year (year to date June ’14-’15), there have been substantial rate rises in Sharm El Sheikh – up 42.5%, Addis Ababa – up 14.9%, Johannesburg – up 11.0%, Cape Town – up 10.8% and Cairo – up 10.6%. There has been a recovery in Lagos – up 5.8%, whilst Nairobi is broadly the same and Casablanca has suffered a 4.0% decline.

The increases in Sharm El Sheikh and Cairo can be explained as a recovery in tourism to Egypt following several years of political unrest. Cape Town’s improvement is due predominantly to increased demand and no recent increases in supply since the 2010 World Cup. In the face of the recent terrorism incidents in Kenya, Nairobi’s hoteliers have chosen to maintain rates but they have suffered with lower occupancy.

The rise in room rates in Lagos cannot be explained simply by supply and demand because there has been a combination of factors that would normally be expected to exert a downward pressure on price. First, there is a hotel development boom in Lagos, with 3,611 new hotel rooms in the pipeline according to W Hospitality Group. Second, there has been a collapse in the oil price, which is damaging Nigeria’s heavily oil-dependent economy and third, occupancy has fallen below 50%. The rate decline in Casablanca is due in part to economic weakness in France, its major source market and in part to currency fluctuations.

At AHIF, Thomas will be reporting on year-on-year hotel performance in some of Africa’s key markets and adding further interpretation and analysis of the main trends. Matthew Weihs, Managing Director, Bench Events, which organises AHIF, concluded: “The wide disparity in room rates, with exceptional prices being achieved in places where there is a shortage of supply, make it clear that there are parts of Africa that offer very attractive prospects for hotel investors. The best way to gain a deeper understanding of this industry is to come to Addis and meet the people who are driving it forward.”

AHIF is a gathering of international investors in hotels in Africa. It takes place in Addis Ababa on Sept 30 – Oct 1.

EGYPT: Tourists You Are Welcome Back

Egyptians are calling on tourists to start returning to their country, now being safe. Indeed, very low prices and an enthusiastic population create a perfect environment for Egypt travellers.

In central Cairo's famous Tahrir Square, where the revolution was won, the victory is celebrated each Friday by large festive crowds, a growing number of tourists are taking place in the celebrations. They are still few, but are warmly received by the protesters, watching out for them and making sure they are safe.

Also at Tahrir Square, many of those having secured the revolution now are joining calls for international tourists to return to Egypt. "It is safe," they assure, and it would be the best way of the international community to support Egypt at these crossroads.

Indeed, tourists have never been as warmly welcomed to Egypt as these post-revolutionary days. The world-famous Egyptian Museum at Tahrir Square, which reopened earlier this week, welcomed the first international visiters with roses.

There are scenes of joy at the Giza pyramids; at the Nile cruiseboats; at historic sites in Luxor and Thebe as the first but few tourists start returning. Local businesses express their gratitude to the returnees in many ways.

One of these ways is lowering prices. Nile cruises could never be had as cheap as now; camel rides equally. Restaurants and hotels - even the Sheraton Hotel in downtown Cairo - offer major discounts to attract foreigners. Of course, occupancy rates are still far below normal.

Under these conditions, this is actually the best possible moment to visit Egypt. The joy of the revolution's victory is still strongly felt; visitors are welcomed in the warmest way; and prices in Egypt are at their lowest.

Although tourist numbers still are at their lowest, there is a remarkable interest in the Egyptian destination. Currently, only regular flights go to Egypt. Tour operators have not resumed charter flights.

But the two major markets for travellers to Egypt - the UK and Germany - will soon revive. Germany's giant TUI already on 1 March resumes flights to Egypt from most German airports. Austria's ETI event resumes Egypt trips tomorrow, 26 February. British Thomas Cook is already operating trips to Sharm el Sheikh, Hurghada and Luxor.

"Our experienced teams on the ground assure us that no tourist areas at the Red Sea have been affected in any way by the recent demonstrations," Thomas Cook Ltd says in an Egypt update issued yesterday. "They are fully operational and holidaymakers are continuing to enjoy the popular resorts of Sharm el Sheikh and Hurghada."

Other countries are slower in normalising their Egypt travel operations, in some cases cancelled until April or even May. But this is quickly changing as governments are removing their Egypt travel warnings. Swedish operator Apollo yesterday announced that, following the lifting of the Stockholm Ministry of Foreign Affairs' travel warning, its first flight to Hurghada was to be precipitated by one month, to 2 April.
Egypt is safe; Tourists, come back
Egyptian authorities are doing their best to hasten such changes in Europe - their main travel market - despite the problems at the Ministry of Tourism, where the ex-Minister and several of his aides have been fired over corruption allegations.

Visiting German Foreign Minister Guido Westerwelle yesterday met his Egyptian counterpart Ahmed Abul-Gheit and other ministers, in talks that to a large degree addressed the tourism sector. Minister Abul-Gheit urged Germany to keep "the flow of tourists to the country" and Minister Westerwelle said government had not only lifted the trave warning, but was urging German tourists to visit Egypt.

Minister Abul-Gheit urged Germany to keep "the flow of tourists to the country" and Minister Westerwelle said government had not only lifted the trave warning, but was urging German tourists to visit Egypt.

Meanwhile, potential Egypt travellers all around the world are investigating ways to go and experience the new spirit in this ancient destination. Travel agents in the US are reporting on growing numbers of reservations and about tourists that had to cancel trips to Egypt earlier now are looking for new possibilities to go to the country.

From Finland, tour operator Finnmatkat reports a large request of people wanting to go to Egypt. These are both people made curious by the revolution and people that had to cancel their trips earlier this year. Among those having to cancel their trips, "many customers wanted to go Egypt in particular, which is why other destinations did not necessarily attract them", Finnmatkat reports. Following the pressure, trips from Finland to Egypt are to resume in mid-March.

Also TUI in Germany is noting an increased interest in its planned resumption of Egypt trips, which still remain fairly cheap. Interestingly, non-Germans are seeking to book Egypt travels through TUI as tour operators in their countries are slow to resume flights.

But despite these optimistic signals, the revivial of the Egytpian tourism industry is still very slow.

March will be the make-or-break month for the recovery of the country's tourism industry. Then, it will be seen if the 2011 season can be saved and if the large labour force in the sector can be maintained.

JORDAN: Air Arabia Jordan Introduces Amman To Dammam Flights

Doing the honours in Amman cutting the new route cake were: Capt. Nadhem AlHamad, Air Arabia Jordan CEO; Nabil Hajjarah, Dnata Catering, Customer Services Manager; Svitlana Scrypai, Air Arabia Jordan, Cabin Crew; Riad Al Khashman, Air Arabia Jordan, Chairman; Stella Saleh, Air Arabia Jordan, Cabin Crew; and Capt. Mohammed Al Omari, Air Arabia Jordan, Accountable Manager.

Air Arabia Jordan commenced twice-weekly services between its Amman (AMM) base and Dammam (DMM) on 2 September. The 1,460-kilometre sector becomes the LCC’s fifth route from its latest hub, and the second in Saudi Arabia, adding to its existing flights to Jeddah.

The airline also flies to Erbil, Kuwait City and Sharm El Sheikh. The A320-operated service will face direct competition from Royal Jordanian, which offers a 10 times weekly service on the city pair.

EGYPT: Tourism Livelihoods Low In Luxor

Mohamed Abdelhadi is struggling to make ends meet as the dip in the tourism industry hits his tourist reliant business in Luxor

Local tourism industry workers tell MEE about the difficulties they have faced since the Egyptian revolution of 2011.

The main cobblestone street stretching between Luxor’s train station and the Temple of Luxor, a massive complex of ancient Egyptian columns, walkways and statues abutting the Nile, is empty in the midday sun. Shopkeepers sprawl on plastic chairs in front of their shops piled to the rafters with carpets and pottery. Young men stand idle on the walkway beside the Nile, hoping to attract a customer for a ride on a felucca, a triangle-sailed boat used to cruise the waterways of Egypt.

Mohamed Abdelhadi, 27, leans back on the seat of his horse-drawn carriage parked in Luxor’s main street, his sandals up on the footboard. Wearing a long, light robe called a galabiyya, he smokes one of the handful of cigarettes he can dig up the money to buy each day. Abdelhadi is waiting for a few tourists to pass by who might pay him for a ride on his carriage. “On the TV, they say that tourism, is coming back,” Abdelhadi says soberly. “But what I see right in front of me is that there’s nothing.”

Luxor, a city along the Nile in southern Egypt some 650 kilometers south of the capital Cairo, has long depended on tourism to hold together its local economy. While the lush fields around the Nile support vibrant agriculture, most locals hoping to make a decent living outside of agriculture or the nearby sugarcane factories look to tourism. But with the revolution of 2011 and the ensuing unrest in Egypt and throughout the region, locals say tourism has plummeted, and so have their livelihoods.

“In 2009, there was business. I picked people up, dropped them off. The whole area was moving. Since the moment the revolution broke out, tourism dropped off,” said Abdelhadi, speaking on the scarcity of clients for his horse carriage, which he has been driving for tourists since he was a teenager.

In the bedroom of his brother, Ahmed Ali, 30, in their family’s home in Luxor’s Karnak al-Qadima neighbourhood, Abdelhadi discussed the rise in prices in post-revolution Egypt that has compounded difficulties in getting by.

“Everything’s gotten more expensive,” Abdelhadi said. “For example, prior to the revolution I used to give 50 Egyptian pounds to my mother and father, and they would buy food for lunch and dinner. Now, I’d have to give them 100 pounds.”

Indeed, the past several years in Egypt have witnessed inflation and rising living costs nearly across the board. According to Trading Economics, a market research and statistics organisation, the “cost of food in Egypt increased 9.79 percent in April of 2015 over the same month in the previous year”.

Further, long-standing fuel subsidies were cut last summer by the administration of President Abdel Fattah al-Sisi, in an attempt to reel in the country’s ballooning budget deficit. The move sparked protests throughout Egypt, and has driven prices for a variety of goods and services still higher.

There are nine people in the family’s modest apartment where Abdelhadi lives. His brother, Ahmed, also a horse carriage driver, said his wife and two children, along with his parents, are on the breaking point without tourism and the work it brings.

“I’m thinking hard about how to pay for food, drink, a pack of smokes, the rent for the house.” He added: “I think of this so much so that I can’t sleep.”

Rasha Azaizy, spokeswoman for Egypt’s Ministry of Tourism, showed optimism for the future of tourism in Egypt. She said that the number of visitors to Egypt is on the increase, with a 6.88 percent rise in visitors between January and March. She also noted an 8.4 percent increase in the number of nights reserved in hotels over the same period.

The areas most negatively affected by what she casually refers to as “the events of 2011”, said Azaizy, were Cairo, Luxor and Aswan. “The tour usually begins in Cairo and ends in Aswan,” she said.

Azaizy ran through the hotel occupancy rates for 2014. With the exception of Egypt’s largest Red Sea resort towns like Sharm el-Sheikh and Hurghada, most of the numbers were well below 50 percent. Luxor’s hotel occupancy stood at an abysmal eight percent.

However, Azaizy says that the Ministry of Tourism has ambitious plans to remake Egypt as a regional hub for tourism. According to Azaizy, by August the ministry will have a dedicated advertising agency which will embark upon an “integrated campaign” to target tourists from specific countries like Russia, England, Germany and Italy. The campaign, which aims to attract 20 million tourists and $26 billion of revenue by 2020, is intended to draw tourists inland to sites like Luxor and Aswan for cultural sightseeing - tourists who might otherwise venture no further than the beaches of Red Sea resorts.

“We will focus on destinations that are suffering. We’ll remind the world that Egypt has more to it than just beaches,” Azaizy said.

Waheed Lawandy, 42, an English-speaking tour guide in Luxor, has depended on tourists for his livelihood since the 1990s. Working as a freelancer, he says that prior to the January 2011 revolution and the upheaval that has followed, work was never in short supply.

“We tour guides used to get phone calls from companies to go work. One day one company would call, the next day another company. We hardly had any rest.”

Working with tourists primarily from Japan, South Korea, the the United States, England, France and Germany, Lawandy says the entire local economy was stimulated. “I was bringing in lots of money. I rented carriages, cars, went to clubs and cafés. Even people not working in tourism were making money.”

Lawandy thinks that with the right efforts, the tourism economy could be rebuilt in Luxor in a matter of months. “I see the solution as reactivating tourism through social media, traditional media and the Ministry of Tourism. They need to show tourists that these areas are not dangerous.”

But for Abdelhadi, the idea of recovering work - and a life - in tourism is clouded by pessimism. For him, there’s not much that can be done to save Luxor. Instead, he sees emigrating as his best bet.

“I want to get out of here, to travel abroad, frankly. I would go to any country that has work,” he said while dragging on a cigarette in his brother’s bedroom.

But without a means to make the money required to travel abroad to work, Abdelhadi seems trapped in unemployment, like one in three Egyptian youth, and constantly hovering on the margins of Egyptian society. Unable to leave the country, and trying to survive off of an industry highly sensitive to security in a country that hasn’t been so unstable in decades, is waiting for a solution from above.

“How do I bring work to my area? I’m waiting for it to come. It’s up to the powerful people on top to do that.”