How to sell Egypt

Tourism to Egypt took a major hit in the aftermath of the revolution, but authorities are now doing all they can to safeguard the influx of GCC visitors this summer. Kathi Everden reports on Egypt’s tourism recovery

After the euphoria of the January 25 revolution toppling the rule of Hosni Mubarak, the travel industry in Egypt is still counting the cost, and the impact will linger into early 2012 as mass markets from Europe in particular turn to alternative sun destinations.

For the upcoming summer season, where regional visitors have tended to lift occupancies particularly in city hotels, the outcome of last minute incentives and consumer marketing campaigns is in question, but given the last-minute nature of the market, hoteliers and agents are cautiously optimistic that business will come good.

From the top, the Egyptian Tourism Authority (ETA) has been active with a dedicated marketing campaign aimed at the regional Arab market.

First assistant minister of tourism, HE Hesham Zaazou explains the strategy: “Because we do not have a network of offices or a presence of the Egyptian Tourism Authority here [in the Gulf], we are depending more on above-the-line promotions — with television, press, online and poster advertising to stimulate the market in the Arab world,” he says.

“We are working with the JWT agency in Cairo and their network across the region on a PR campaign, inviting media as well as the travel trade to come to Egypt and experience it.”

Initiatives designed to cater to the needs of the pre-eminent European market have included incentives for charter operations — offering payments for empty seats to guarantee profitability, as well as joint marketing with tour operators — a measure the ETA has implemented for several years with more than 180 companies.

However, Zaazou acknowledges that a lack of information about this potential support has been a cause for concern in the Arab world:
“We have had little response from the offer of charter incentives and nothing has happened concerning the offer of dollar-for-dollar marketing,” he admits. “But this is partly due to the fact the trade does not know what we are offering.”

“In countries such as Jordan and Saudi Arabia, we are seeing some business, with a trial charter from Amman last month for instance which might be extended through out the summer,” he adds.

Trade relations
As a stopgap measure to reach the trade, Zaazou says the Tourism Ministry has requested that Egyptian embassies around the region get in touch with key tourism and travel players in their countries to disseminate the offer of financial and marketing support.

“In the medium term, we have plans to extend our network of worldwide offices to South America, Malaysia and the GCC, and we will open an office, probably in the UAE.”

In the meantime, Zaazou stressed that the ministry and ETA was ready, willing and able to support any trade initiatives to boost arrivals this summer: “Any enquiries can be made direct to our offices in Cairo, we can supply brochures, POS materials and host those who want to see the situation for themselves.”

While hotels are putting packages together to incentivise the market, the ministry approach to place Egypt at the forefront of the GCC traveller’s mind is to couple an exciting entertainment programme with advertising — highlighting family attractions, beaches, shopping and nightlife.

“Last year, we experienced 11.3% growth in GCC visitors, up to 2.1 million, as well as a 17.3% increase as a result of our Fawanees Ramadan campaign which will be run again this year,” expains Zaazou.

“Our message this summer is to ask the Arab world to support us as we start to build a new Egypt.”
On that calendar of events designed to draw in the crowds, will be a host of big name Arab singers as well as Egyptian stars, with more than 100 music and dance performances already scheduled in.

“We will create different events pre-, during and post-Ramadan and the travel industry in Egypt has been very supportive with this initiative. Hotels such as Hilton and IHG have responded to our plans and suggested venues that will be not only in Cairo, but also in Alexandria, Hurghada and Sharm-el-Sheikh too.”

One problematic factor could be the curfew in Cairo which is still in place — last month operating from 0200 hours to 0500 hours — potentially a big deterrent for Arab travellers (particularly during the month of Ramadan). However, Zaazou is keen to emphasise that moves are in place to lift this: “We have made representations to have this removed for the summer and we have been advised this should be the case — we know it is an issue with the GCC market and once it goes, I believe there will be interest to come to Cairo again.”

Packaged goods
Following a plea from Egyptian authorities not to trash rates to win back business, the major hotel groups, at least, are heeding the message with standard summer packages coming in to the market, offering discounts of up to 25% on average.

For many resorts, however, pressure from agents and operators is resulting in off-message price cutting with discounts of 50% or more — an inevitable outcome of the fact that tour operators and agents virtually ‘own’ the room inventory, says Jeff Strachan, Marriott regional VP sales & marketing.

“Egypt is far more reliant on the trade than a market such as Dubai where there are more direct bookings,” he explains. “However, as the end decision is a consumer one, we have to wait to see where the market goes given that regional choices are becoming limited, and Dubai, Cairo and Sharm-El-Sheikh are probably the top three.”

Marriott has launched a summer promotion across its six Egyptian properties, capitalising on the ‘emotional pull’ of the 25 January revolution by stressing the ‘2’ and ‘5’ in a variety of guises, from free nights to room rate discounts.

“This will target leisure travellers but also meetings, corporate business and local trade,” explains Nadia El Ansari, director of sales & marketing at the Marriott Cairo Hotel. “It covers all our properties as we are promoting Egypt first, as well as the individual hotels.”

“We were at ATM to emphasise that it is business as usual, corporate travel is coming back but we know the regional leisure market will wait until the last minute before making a booking decision this summer.”

Wholesaler Destinations of the World recorded demand for Egypt during the show too, although not as high as previous years, according to group chief operating officer, Steve Harrop: “There is more confidence in the market, interestingly from Asia Pacific where we have seen a 10% year on year growth in to Egypt, while local business selling Egypt hotels to Egyptians has risen by 89%,” he said.

At IHG, regional VP operations Pascal Gauvin was optimistic that regional traffic would be back soon: “Even in a normal year, this is very short booking business with perhaps two weeks’ lead time, but we have done everything possible to make people come,” he said.

“We have seen some recovery especially in the city hotels with corporate business, local MICE and some banqueting, and one advantage we will have with our three properties at CityStars in Cairo is that this is a city-within-a-city, with on-site entertainment, restaurants, etc — and we will be opening the latter 24-hours a day this summer meaning visitors will have no need to go out.”

While discounted rates were unlikely to persuade travellers to come to Egypt if they had doubts about security, Gauvin said IHG had a range of promotions rolling out across both business and leisure sectors: “As well as the 25% room discount, we will offer double points to our business club membership, special honeymoon packages, ‘all-in-one’ packages for both resorts and Cairo hotels, bespoke leisure packages for our corporate clients and added value corporate rates.”

Sample hotel packages:

Marriott
Marriott has launched a summer promotion across its six Egyptian hotels capitalising on the emotional pull of the 25 January Revolution by stressing the ‘2’ and ‘5’ in a variety of guises. The promotions target both leisure, corporate and business travellers. Deals include: book seven days in advance and save 25% on any room or suite rates; stay for five nights in any Diplomatic or Executive suite and get two nights free; book 25 rooms and get two free rooms or five upgrades to a higher room type.
Contact: www.marriott.com

Movenpick El Gouna
Receive a 25% discount on rates through the summer with rooms from US$90 per night inclusive of breakfast and taxes. The resort is nestled on a peninsula with an exclusive beachfront presenting a spectacular view of the Red Sea. The 554 spacious rooms and suites are distributed in eight clusters, all enjoying views over the lush gardens, the lagoons or the sea. The hotel also offers family rooms and four-bedroom villas which are perfectly suited to the GCC market.
Contact.resort.elgouna@moevenpick.com

Fairmont Nile City
Book three nights stay and get a fourth free at the Fairmont Nile City, with a free upgrade thrown in too — subject to availability. This is a great time to stay at the Fairmont Nile as the hotel has recently opened a 20,000 sq ft Willow Stream Spa offering private hammam for both men
and women, as well as nine single and two couples’ treatment suites. Plus travel agents
are offered a US$10 bonus
payment for bookings made at
the hotel.
Contact: www.fairmont.com/NileCity

Dusit Thani Lakeview Cairo
Dusit Suites are available until September 15 at an exclusive rate of US$220, plus service and taxes. Included is breakfast and all-day refreshments for two at the Club Lounge, welcome drink, free local land-line calls, laundry and pressing up to $10 per stay, use of the meeting room for two hours and entry to the fitness centre. The resort has 30 new apartment units this summer aimed at the GCC market, offering discounts on food and beverages, laundry and kids’ activities.
Contact: +20 2 2614 0000

Intercontinental hotel group (ihg)
IHG has a range of promotions on offer across its nine properties in Egypt, including 25% on advance purchase bookings, double points for business club members, special honeymoon packages, bespoke leisure packages for corporate clients and added value corporate rates. There are four different brands to choose from in Cairo —
the Cairo Staybridge Suites, Holiday Inn Cairo, the luxury Cairo Semiramis and the
Citystars Cairo.
Contact.www.ichotelsgroup.com

KEMPINKSI nile & kempinski soma bay, red sea
Kempinski Nile Hotel has a ‘Stay four and pay three nights’ offer valid until the end of September. It includes complimentary butler service, internet, video on demand, in-room soft bar and access to the spa.
The Kempinski Soma Bay, Red Sea has a “We are a family” package including two rooms for parents and children under 12 for three nights, daily breakfast, airport transfers from Hurghada Airport, and free access to kids’club and kids’ pool.
Contact: www.kempinksi.com

How to sell
How to get there:
Airlines in the region are upping flights to Egypt this summer following
increased demand

Jazeera is offering a full schedule of services to Egypt this summer via Kuwait with daily flights to Alexandria and Cairo; five times weekly to Luxor and two services a week on Thursday and Saturday to Sharm-El-Sheikh between June 1 and July 31, and again from September 1 to September 24. Return fares are from KD80 ($290) with hotel rooms offering on its website from US$39 a night.

Emirates has added three additional flights between Dubai and Cairo, and now flies 12 times a week.

FlyDubai has put on more flights to Alexandria, offering two services daily from Dubai. CEO Ghaith Al Ghaith said the airline is looking to add more routes in Egypt.

Nile Air has launched services between Alexandria and Jeddah, operating three times a week.

Royal Jordanian is offering special rates from Amman to Sharm-El-Sheikh in conjunction with Jordanian tour operators.

How to sell
What to do:
The Ministry of Antiquities has announced a number of new archaeological and tourist sites will be opened up this summer in order to help with the revival of Egypt’s tourism sector.

Among these attractions are the restored Hanging Church
in Cairo, the Serapeum and New Kingdom Cemetary at Saqqara, plus the new Suez National Museum and the Crocodile Museum in Kom Ombo on the Upper Nile.

With the fall of the old government, new attractions in Egypt focus on the recent Revolution and places of interest associated with it — such as Tahrir Square.

Both the old and the new are featured in new tours around Cairo which combine the Pyramids of Giza, and Egyptian Museum, with a visit to Tahrir Square, taking in protest sites and even meeting with people who experienced the events of the January Revolution first-hand. Prices are around US$50 per person depending on the size of the group.
Contact:
www.ramsestours.com