Desperate times have called for desperate measures with Cairo hotels slashing rates to attract a handful of guests, but an underlying buzz of activity provides hope for the city’s tourism industry as investors and operators look past the unrest
On the surface, downtrodden Cairo hotels are stooping to their lowest levels yet to attract a handful of extreme tourists and brave businessmen in an attempt to keep their skeletal operations alive.
But underneath the surface, a flurry of international consultants, bargain-hunting investors and hospitality optimists are at work planning a new future for the city, home of one of the seven Wonders of the Ancient World, The Great Pyramids of Giza, and a wealth of other attractions.
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The level of Cairo hoteliers’ current state of desperation varies depending on the area. While occupancy levels were up across the whole of Cairo in 2012 on 2011, the occupancy levels were still meagre.
TRI Hospitality Consulting results show an average occupancy of 40.5% in the month of December 2012, compared to 36.3% in December 2011. Furthermore, this increase in occupancy came at a price, with most areas seeing reduced average daily rates in 2012 on the year before.
Downtown, not all dull
Looking at Downtown Cairo and the famed Tahrir Square — recognisable from the disturbing images of violent uprisings frequently broadcast in the media — the area surprisingly received the biggest hike in occupancy seen across Cairo in 2012, up by a considerable 30.1% on 2011.
This increase is perhaps less surprising when you look at the 11.7% slump in average daily rates in 2012 compared to 2011, according to Colliers International statistics, which highlights the extent to which hoteliers have cut rates to lure tourists.
A quick search on Expedia exposes luxury five-star hotel bargains such as Conrad Cairo and InterContinental Cairo Semiramis going at under US $110 per room night due to their rather hairy locations.
The InterContinental Semiramis, located close to Tahrir Square and the US Embassy, was forced to close down completely at the end of January after masked gunmen stormed the building. Panic-stricken staff called for help on the hotel’s Twitter page.
“A group of people forced their way into the property and caused significant damage to the reception and ground floor areas of the hotel. We secured our guests and colleagues during this time and no-one was hurt in the incident,” IHG VP of operations for the UAE, Near East and Africa Ignace Bauwens told Hotelier at the time.
“The situation unfolded rapidly and the hotel used all means at their disposal to ask for the help of police and security forces to ensure the safety and security of our guests, colleagues and the property,” he added.
Fortunately there were no reported injuries and the hotel has since reopened, but it’s fair to suspect the incident failed to instill confidence in potential visitors to the area.
“Downtown Cairo used to be the main attraction for tourists, but it’s been affected dramatically by what’s happening as most of the hotels are close to Tahrir Square. The Ritz-Carlton, next door to the Semiramis, is closed for renovation,” says Jones Lang LaSalle Misr LLC head of Egypt Ayman Sami.
“The Fairmont Nile City Cairo nearby is still operating but has also had certain events that have reduced occupancy dramatically. You also have the Conrad and Four Seasons further south, which continue to operate,” he adds.
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