Egypt Now: An Eyewitness Account

Egypt... Many in the tourism industry are literally shaking at the mere mention of this destination—business professionals and tourists themselves have been waiting too long for the return of the Red Sea resorts. The negotiations for resuming flights have been significantly delayed, and there's no progress. For a long time, there were no specifics, and even now, when everything is more or less clear with regular flights, the question of charters remains open. To bring some clarity to all this and understand what's happening "on the other end of the line" in the lead-up to the launch of regular flights, the tour operator TEZ Tour organized an exclusive trip to Egypt, inviting the editor-in-chief TRN.

Almost every day for a week, we promptly brought you news from Egyptian resorts after meetings with participants in the country's tourism sector, politicians, and hoteliers, and posted photo reports.

In this article, we'll try to provide a more detailed look at the current state of affairs. Of course, no one but the president can name the charter flight reopening date, but we'll share everything we know so far to help travel industry representatives better prepare for the long-awaited reopening.

Opportunities at this stage

Russians who don't intend to wait for the route to open and are eager to reach Egypt's Red Sea resorts are flying there via neighboring countries, including Belarus.

We flew the Minsk-Hurghada overnight flight. We flew to Minsk on Aeroflot, and then to Egypt on a tour operator charter flight with Belavia. The layover was about five hours long and was handled well. Minsk Airport is modern and convenient: plenty of shops, cozy lounge areas, cafes, paid showers, a children's area, and free Wi-Fi.

The charter flight to the resort was loaded with 100%, mostly Belarusian citizens, but on the way back from Hurghada we saw quite a few "red" passports in the queue.

Belavia's aircraft are new and comfortable, with generous seat pitch, making them comfortable even for tall passengers. In-flight service is polite and friendly, and the food is excellent.

As reported by TRN General Manager of TEZ Tour Egypt Ehab WahdanThe company's reservation system already contains several requests for hotel reservations in Egypt for March 2018.

According to him, the first hotel booked by Russians after a two-year hiatus was Dreams Beach Resort Sharm El Sheikh 5*.

"We've already received several such requests. While there's no adequate transportation, tourists search for and purchase tickets themselves, and book hotels through our system. We, in turn, welcome guests and provide them with transfers and excursions," the speaker added.

According to current information, more than 50,000 Russians visited Egyptian resorts independently in 2017.

The cost of a visa is currently $25 at the airport upon arrival.

What to sell after launching regular flights?

TEZ Tour has announced its readiness to begin sending Russian tourists to Egypt en masse as soon as the first scheduled and subsequently charter flights from Russia are launched. The tour operator also expects to regain its market share significantly faster than other companies.

According to Ehab WahdanBefore the suspension of flights from Russia, TEZ Tour ranked third in terms of the number of Russians sent to Egypt.

"Over the two years since the Russian flights stopped, we've continued sending tourists to Egypt from around the world. We have contracts with over 250 hotels in the republic, most of them in Hurghada. Furthermore, rather than selling them, we've been upgrading our bus fleet, upgrading our staff, and expanding our range of excursions. It's worth noting that tourist flows from all markets are only increasing, with airlines and tour operators adding new routes and increasing their frequency," said Ehab Wahdan.

He noted that once carriers determine the flight schedule to Cairo from Russia, the tour operator will be ready to offer Russians a full tour package.

It will include an overnight stay in Cairo hotels and a tour of Cairo's sights for tourists from Russia.

"We already have daily excursions to the capital from Hurghada and Sharm el-Sheikh, and we want to create a product for tourists flying into Cairo. This will involve an overnight stay in the city and a visit to the sights the following day—the historical museum and the pyramids—followed by a bus to the resort. We think this will be in demand. According to preliminary estimates, a maximum of 100 tourists per day will choose this product, and we can easily accommodate that volume," the speaker said.

It's worth noting that the Cairo tour will be complimentary for passengers on the first flights. However, this is subject to the condition that guests' stays last at least seven days, as some may wish to visit Cairo for two or three days, specifically to visit the sights.

For those who want to get directly to their hotel quickly and comfortably, connecting flights from Cairo Airport directly to the resorts are available. The flight will take 1–2 hours, with a wait at the airport of up to 2 hours. This will add approximately $100 roundtrip to the tour price.

"Carriers are willing to offer group discounts, increase flight frequency, and accommodate tourists so that the price stays below $80," added Ehab Wahdan.

And again about safety

Unfortunately, there are fewer and fewer places on the planet where one can feel truly secure. However, over the past two years, the Russian side has been meticulously and meticulously negotiating with Egyptian authorities about the level of security in the country. The results of these negotiations have been reported repeatedly by national media.

Egypt's airports have now implemented maximum security measures. TRN reported this using Cairo Airport as an example. Ehab Wahdan, which is also member of the board of directors of the Association of Tour Operators of Egypt, member of the working group at the Ministry of Internal Affairs of the country on security issues.

Describing the nuances of the new system, he clarified that it has become difficult to enter the Cairo airport's lounges and its territory in general without identification documents and tickets to your destination.

"New equipment for screening passengers and employees was installed, staff underwent special training, new specialists were brought in, and the security system itself was completely revamped. At the same time, the speed of passing through all checkpoints hasn't increased due to a significant reduction in the number of people entering the airport building. This approach is now being used at all airports across the country, including resorts, and we constantly feel the impact. Even our friends in the security agencies joke that their commercial crime detection rate has increased due to the fact that they've started conducting more checks. We were fighting one issue, but we also improved our effectiveness in other areas," he said. Ehab Wahdan.

He also clarified that the new operating scheme applies to all passengers, including high-ranking officials and diplomats.

The Governor of the Red Sea Region, Ahmed AbdAlla, also confirmed this information.

He noted that security measures at the airports of resort cities, and specifically Hurghada, can be rated even higher than at Cairo Airport.

"We have very strict security checks at the airport entrance and exit. They check all buses and cars, and all documents at the entrance to the building," the head of the region added.

Indeed, the situation at the resorts and in the airport areas is calm and stable; we experienced this firsthand while in Egypt.

Along with a large group of tourists, journalists from Russia visited the Egyptian Museum in Cairo, saw the pyramids of Giza, and then separately examined the first pyramids of Egypt, including Djoser, the Cairo Citadel, and the Coptic Church.

The combined group of tourists, who departed from their Hurghada hotels at night, were escorted by a convoy. It's worth noting that the convoy was assigned to several buses, which had gathered at a designated time in a large parking lot on the outskirts of the resort.

The transfer to Cairo took about 5 hours, including a stop for breakfast near a large food court, where you could also buy souvenirs.

Security in all tourist areas is also ensured at the highest level. For example, at the Cairo Museum, tourists pass through several "security gates," and "unobtrusive" police officers patrol the halls. A similar situation exists at the Giza pyramid complex and other attractions.

Throughout the entire excursion, a security officer was present on the bus and accompanied our group.

"Of course, we hope that the Russians will return soon. Moreover, the security level in Egypt is currently very high, and the problem with the delayed resumption of air travel is not at all related to this...," he stated, commenting on the topic. Regional Manager of the Italian hotel chain Sharm Dreams Holding for Tourism&Hotels SAE Aldo Stinchetti.

Tamer Saed, Co-Partner & COO TEZ Tour (Hurghada), also supported this position: "Currently, Egypt ranks first in the world in terms of security. And that's true. We've done everything we can to achieve this. We want to change the world's perception of Egypt's security situation. This applies not just to the airports, but to the entire system.".

Egypt Hotels: Prices, Conditions, and Forecasts

During our visit, we met with Egyptian hoteliers, who discussed their planned pricing policy, their market outlook, and their forecasts for the near future.

So, in response to TRN's question about whether Russian tour operators and tourists should expect an increase in accommodation prices, General Manager of the Egyptian-German chain Jaz Aquamarine Hany Gamaleldin reported that the chain's hotels do not plan to increase prices after the opening of charter flights from Russia.

"We won't be changing prices; that's not part of our plans. However, everything has become more expensive over the past two years—gas and groceries. We can't operate at a loss, nor can we compromise the quality of our services. I can't speak for other hoteliers. It all depends on the hotel's policies," he said.

According to him, Egyptian hotels are not currently in active negotiations with Russian tour operators; everyone is waiting for the exact start date of air service, which is constantly being pushed back.

"In general, we expect a very rapid recovery in Russian traffic after charter flights resume. It's worth noting that before 2015, Russians accounted for 20% of our guests," the speaker clarified.

Joining the conversation regional manager of an Italian hotel chain Sharm Dreams Holding for Tourism&Hotels SAE Aldo Stinchetti He added that in his network, the Russian market accounted for at least 50% of the flow.

"Meanwhile, it's crucial for hoteliers to have a flexible marketing strategy to avoid losing business. For example, those hotels that exclusively served the Russian market were forced to close after the incident with the Russian plane in 2015. We, however, relied on multiple sources," he said, adding that it's necessary to adapt to the market.

Earlier, the general manager of TEZ Tour Egypt Ehab Wahdan stated TRN, Hotel prices in Egypt are now much lower than in 2015. There are two reasons for this: under-occupancy due to the lack of Russian tourists and the dollar exchange rate, which changed sharply against the Egyptian pound about a year ago.

"Instead of 8 pounds, it's now almost 17. This has helped the country's hoteliers reduce their sales prices. They spend in pounds and earn in dollars. It's profitable for them. Perhaps later, if Russia and the UK launch charter flights simultaneously, prices will increase. But for now, these several thousand tourists on scheduled flights won't affect rates. Moreover, hoteliers are very interested in recapturing the important Russian market. We currently have numerous applications from hoteliers to participate in the MITT exhibition in March. They want to go to Moscow, connect with potential partners, promote their presence, and share their new offerings, even if charter flights don't open yet," he said. Ehab Wahdan.

He also emphasized that, for the most part, Egyptian hotels have maintained their standards over the past two years. This, of course, applies to those hotels that continued to operate in other markets throughout the period of Russia's flight suspension. "We have a strong quality control department within our company. We constantly monitor the level of service we provide to tourists and employ so-called 'mystery shoppers,' in this case, mystery tourists. Hotels that significantly deteriorate in their performance are blacklisted, and we stop working with them or temporarily suspend cooperation until the issues are resolved. These procedures are stipulated in our contracts with hotels," Ehab Wahdan emphasized.

According to him, there is currently no labor shortage in the Egyptian labor market, including in the hotel sector.

"Hotels are currently being cunning and allowing their employees to work shifts in order to retain their staff until the Russian market fully returns," the speaker emphasized.

Meanwhile, Tamer Saed, Co-Partner&COO TEZ Tour (Hurghada), Estimating the potential increase in hotel prices after the resumption of charter flights from Russia, he clarified that it is expected to be in the range of 10–201 TP3T. However, in reality, this will only be a return to pre-crisis levels.

"We expect a very large influx from Russia in the initial phase. Then the market will stabilize. Most hotels, especially large chains, are prepared for such a surge and will be fully adjusted within a month—this applies to almost 901% of the hotel market at our resorts," he explained.

According to his forecasts, Hurghada and Sharm el-Sheikh will be almost equally popular, but the speaker predicts particular demand for 4-star hotels.

"More likely, Hurghada will be the first to open, and this is due to several reasons at once,” noted Tamer Saied.

By the way, at the moment Hurghada hotels are occupied by 50–70%. This was stated by TRN Governor of the Red Sea Regions Ahmed AbdAlla. According to him, hotel occupancy will increase significantly with the return of Russians. Hurghada currently has 76,000 rooms in 267 hotels.

New excursion and infrastructure developments

"The city of Hurghada and the surrounding region are becoming more convenient for tourists. They may not notice it when they arrive, but many expensive projects have been implemented specifically for their convenience. For example, a new road to Cairo has been built, which takes tourists on daily excursions. A good road to Marsa Alam will soon be built. A large water treatment plant and a wind farm have also been launched. We are ready to show guests that we have a good environmental situation and offer a safe and peaceful vacation," he added. the governor said.

According to him, in Egypt, in Hurghada, they are really looking forward to the return of Russians and there are many hopes are entrusted with the launch of charters.

"Our tourism industry is eagerly awaiting Russian tourists, just as Russians are eagerly awaiting the return of vacation opportunities in Egypt. We've opened a large new airport terminal in Hurghada, ready to handle around 13 million tourists a year. On average, it currently handles around 5 million tourists, plus another 2.5 million through Marsa Alam Airport. Furthermore, a new airport will soon open in Berenice, 270 km from Marsa Alam, which will also provide additional opportunities for tourism," the governor reported.

The head of the region also stated that by the end of the year in Hurghada A new historical museum will open.

"Of course, it will not be as big as the one in Cairo, but we expect that this attraction will start to be in great demand," he said.

By the way, in Giza (a satellite city of Cairo) we stayed in a hotel Mercure, located just next to the new Grand Egyptian Museum (GEM) under construction, the first stage of which will open by the end of 2018.

The exhibition dedicated to the life of Tutankhamun will launch first. It is expected to include more than 15,000 objects discovered in the Valley of the Kings in Luxor.

The museum will fully open in a year. It will house over 100,000 relics. The total area of the museum complex will be 480,000 square meters.

In addition to the main building, the complex will include a cinema, a library, classrooms, conference rooms, a multimedia center, a children's museum, a museum for people with disabilities, an entertainment center, exhibition halls for temporary exhibits, and parks. For the convenience of tourists, the museum complex will be connected to the Giza pyramids by a special road.

Egyptian authorities expect the Grand Egyptian Museum to welcome 8 million visitors annually within five years of its opening. When it opens, its exhibits will include the collections of the current Egyptian Museum in Cairo's Tahrir Square, including many objects currently in storage.

TEZ Tour also told us about their new excursions.The company will soon launch a tour on a stylized pirate yacht in the popular new area of Sahl Hasheesh near Hurghada.

The yacht will offer a variety of activities, including a delicious seafood lunch, banana boat rides, fishing, and "pirate forays" at sea. Tourists will be able to see the new Sahl Hasheesh district, which is currently undergoing rapid development. New, luxurious hotels are being built there, and experts are confident it will become the most popular and famous in the region due to its newness, respectability, and the beautiful coral reefs in the coastal waters of the Red Sea.

Incidentally, in this area, we were warmly welcomed by the luxurious Baron Palace Sahl Hasheesh 5* hotel, offering 645 rooms of various categories. The hotel opened in 2014, and they also have high hopes for the Russian market. The sheer number of Russian-speaking staff (at the bars, at reception, and among the entertainment staff) speaks volumes.

"Russians, real Russians? Finally!" the hotel staff were pleasantly surprised when they met us on the beach and immediately peppered us with questions about the intricacies of launching flights.