ONE COUNTRY , TWO STORIES |
Samih Sawiris
There are two sides to the story of Egypt , says Samih Sawiris , chairman of Orascom Development , Cairo . The Mediterranean coast is still bearing the brunt of Western media reports that paint it as unsafe after a Russian airliner
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crashed in October 2015 ( the Islamic State claimed responsibility for downing the plane ). Then there is the Red Sea , which “ is more or less living off Egyptians and repeat guests who aren ’ t influenced by the media ,” says Sawiris , who handed over the reins in January to a CEO charged maintaining footing and growth lost over the past six years .
The devaluation of the Egyptian pound , in March , along with Germania , a German airline , resuming flights in October to the resort city of
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Sharm al-Sheikh , is expected to help rekindle tourism . Cairo , which currently has 28,000 keys , will add 2,300 by year-end 2018 , including a St . Regis . The city had double-digit increases in ADR and RevPAR year over year in Q2 2016 , according to STR .
Orascom ’ s development arm has 17 hotels in El Gouna , a self-sufficient holiday town on the Red Sea . The company is behind nine such developments , in Egypt and the Middle East , including Oman and the UAE , and in the U . K ., Montenegro and Switzerland .
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In Oman , which navigated the 2008 recession and wasn ’ t affected by the Arab Spring in 2010 , Orascom ’ s four hotels are doing well , Sawiris says . But the past few years have taken a toll on the company : Five Orascom hotels were closed to await a recovery , leading to layoffs .
A potential positive : The International Monetary Fund in August tentatively agreed to lend Egypt US $ 12 billion in return for economic reforms . Another : “ The Egyptians are traveling a lot more ,” Sawiris says .
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A hotel beach in El Gouna |
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October 2016 hotelsmag . com 47 |