War threat hits Egyptian tourism

Egyptian hoteliers are experiencing a drop in bookings of up to 50% as a result of the threat of war against Iraq. Adel Bibars, general manager of the 300-bedroom Sheraton Sharm El Sheik on the tip of the Sinai peninsular on the Red Sea, one of Egypt's prime tourist destinations, said occupancy was running at 42% compared with 80% this time last year.

Alexander Bieber, general manager of the 338-bedroom Sheraton Miramar El Gouna, also on the Red Sea, said he had experienced similar drops in occupancy levels and that revenue per available room had fallen to $25 (£15.62) when it would normally be $40 (£25).

Hoteliers are hoping that any war will be short, allowing them to get back to business as usual as soon as possible. Starwood Hotels and Resorts, owner of the Sheraton brand, said it would not be discounting. "We see this as a short-term situation and we are not going to start interfering with rates," said Jirayr Kececian, Starwood director of sales and marketing, Africa and Middle East.

Visitor numbers to Egypt are expected to fall to 3.2 million this year compared with 5.2 million last year as a result of the current political situation.

Source: Caterer & Hotelkeeper magazine, 13-19 March 2003