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New hope for tourism industry
Published in The Egyptian Gazette on 23 - 02 - 2011

SHARM EL-SHEIKH - “There's no one at the reception desk,” said the security guard in front of the Cataract Hotel in Naama Bay. I had decided to explore the current situation in Sharm after the January 25 revolution and use the percentage of occupancy in this famous hotel as an indicator. However, the hotel was closed; there were no visitors and no business.
I want to stay optimistic in the wake of this revolution and hope that the expected change will be for the better. A new beginning, a new government, a new hope for a better life for millions of Egyptians. Perhaps even a new way for Sharm el-Sheikh to survive on its own without pinning its survival on one industry alone.
The days seem to pass too slowly on the streets of Sharm with the extraordinary events taking place in Cairo and other cities. The disappearance of tourists has encouraged the local residents to explore creative solutions that lessen the impact of the severe blow to its primary industry.
However, I believe Sharm's magnificent beauty will ultimately prevail. With the ability to overcome all obstacles, beauty may be the feature to save Sharm.
Sharm el-Sheikh's empty streets, dotted with few visitors, convey a feeling of desertion.
The large number of local residents who own businesses that cater for the visitors have been forced to downscale their operations or close them.
Samia, who owns a travel agency, said: “They stated on the news that hotel occupancy is less than 15 per cent. But that is not even close. All groups have cancelled for the next two months, and hotels in Nabq (a suburb of Sharm) and around Sharm have shut down.”
The residents are experiencing a tightening of the economy. One of Sharm's successful entrepreneurs, who owns several resorts and shopping centres, postponed the rents for store tenants. Since there was no business, it was obvious that they couldn't afford to pay the rent. Other property owners offered reductions.
Governor of South Sinai Mohamed Shoosha postponed the paying of three months' rent to a later date. He also reduced the rent of Government-owned property by 30 to 70 per cent, depending on the size of the space and likelihood for business.
“With President Mubarak stepping down, the hope that tourism will return to Egypt and Sharm in particular is growing in our hearts,” Samia said.
Egypt now focuses on establishing a transitional government, which will create the foundation for democracy and pave the way for the upcoming presidential elections.
The ‘New Egypt' emerging from that process will help tourism flourish and send the message that Egypt is a peaceful country and Sharm truly ‘the City of Peace'.
When the January 25 revolution started, more than a million tourists were afraid of violence. They doubted the peaceful nature of Egyptians and left. Many embassies asked their nationals to evacuate. No one can blame them for being scared for their lives.
However, the Egyptian people avoided most of the violence so many feared and proved that this was truly a ‘White Revolution'. A few foreigners with unshakeable faith in Egypt stayed behind, but not nearly enough to maintain this once vibrant industry.
With tourists and foreign nationals flocking back to their countries, many hotels had to close their doors, and thousands of employees lost their jobs. The ripple effect on bazaars, restaurants, diving centers and other businesses is unimaginable in terms of economic loss.
Naama's famous promenade is empty, with only a few tourists here and there. Standing outside their shops, staff try to attract customers. When comparing this scene to happier times when tourists filled the pavements and shops, any lover of Sharm will be sad.
In the old market, fruit and vegetable sellers are stuck with their produce. If the situation continues, it will be the worst period in Sharm's history.
Sharm was able to bounce back after the terrorist attacks in 2005 and 2006, and had just started to recover after the shark attacks last December.
According to estimates, more than a million tourism employees in Egypt and around 50,000 in Sharm el-Sheikh are affected by the current situation. They have families and need to put food on the table. The domino effect of the tourism industry on others like restaurants, souvenir manufacturers, entertainment, sports, safaris and Bedouin crafts will multiply that figure.
We all have to work together to spread a message that was posted on the Facebook page of ‘Kolena Khalid Saeed' to anyone who has an upcoming holiday.
We have to encourage them to come to Egypt, particularly Sharm el-Sheikh, Hurghada and Luxor. The campaign should be intensive and taken up by international and local media outlets.
On a positive note: Thomas Cook continued some of its chartered flights from England to the Red Sea resorts Hurghada and Sharm, demonstrating true belief in the Egyptian people and the safety of both cities.
In addition, on February 20 Russia sent two chartered planes with tourists to Sharm, signaling the resumption of operations to Egypt. Most importantly, it was said that Russian tourists preferred to come back to Egypt than to go to other destinations.
In the meantime, we need to brainstrom and find ideas on how to rebuild Sharm's economy.
Sharm needs a new look, a facelift and new attractions. If it depends solely on tourists to make or break its economy, the future will be constantly up in the air. In fact, if the new look focuses on offering medical services and health centres that teach customers the skills to lead a healthy life, or start agricultural projects, build ‘green' factories and so on, then Sharm will build new economic strength. This growth will reduce the impact of events like the ones we have just witnessed.


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