Floating hotels: The pound's flotation has offset higher operating costs and is the reason prices for foreigners are stable
By Akram Medhat
Positive indicators and a state of optimism prevail among floating hotels and tourism companies working in cultural tourism, amid rising booking rates for the coming winter season in Luxor and Aswan, which will begin in November.
Tourism investors agreed that the Chinese market will see a boom and account for the largest share of hotel occupancy during the winter season. They noted that President El-Sisi's visit to China had a great positive effect in raising demand for Egypt, continuing the recovery of this important market since last season, in addition to thriving traffic from the German, Japanese and Indian markets, to the extent that most hotels have been fully booked.
In this context, Hany Youssef, chairman of "Planet Tours", said that all the Nile boats between Luxor and Aswan that are fit for operation have been booked under the contracts concluded for tour groups from markets interested in cultural tourism, adding that most of the floating hotels fit for operation do not exceed 100 boats and are operating at about half capacity.
Youssef revealed to "Travel Yalla News" that the Chinese market tops foreign arrivals for the coming winter season, followed by the Japanese, American, German, Indian and Latin American markets, with the Australian and Indonesian markets at the bottom of the list because their numbers are small to begin with, noting the absence of British tourism in Luxor.
He noted that all flights on EgyptAir's new direct route from Japan to Luxor, scheduled to start operating at the end of October, are full throughout the season, which has compensated for the suspension of Qatar Airways, which had played a major role in bringing large tourist traffic from Far East markets.
Stable Prices for Foreigners
Youssef explained that hotel prices have not changed significantly compared with last season. Despite the rise in operating costs after the fuel price increase, the flotation of the pound and the doubling of the dollar exchange rate had a positive effect in balancing the pricing system, offsetting the difference in expenses and achieving relatively acceptable profits, he said, noting that some prices increased by a small margin not exceeding 5 or 7%.
He added that prices at 5-star floating hotels for foreigners range from $35 to $60 per person in a double cabin, noting that there was an attempt to raise prices from last year, but the supply of hotels and cabins exceeds demand, so competition is fierce, in addition to the importance of retaining tourists and not shocking them with high prices.
The Best Season
In a related context, Mohamed Osman, a member of the Luxor Tourism Marketing Committee, expected the coming winter season to be the best for inbound tourism to Luxor and Aswan since 2011, based on the rate of bookings from the various markets focused on cultural tourism. The average occupancy rate in floating hotels is expected to reach 50%, led by the Chinese market, he said, noting that Japanese bookings have risen by 50% compared with last season, along with a large influx of Indians.
He added that the rate of foreign arrivals to Luxor from China, Germany, Japan, India and Latin America is promising, compensating for the mysterious absence of British tourism, noting that Spanish tourism is promising and optimistic and that requests have been submitted to increase flights from the Spanish market.
Osman stressed the importance of coordination between the ministries of tourism, civil aviation and antiquities to bring tourist traffic back to Luxor, calling on national carrier EgyptAir to operate a direct route from China to Luxor. He said that promoting the anniversary of the discovery of Tutankhamun's tomb on November 1 and organizing a celebration worthy of Egyptian history would draw a strong response in countries interested in cultural tourism, noting that 12 archaeological and cultural events for the winter season have been submitted to the Minister of Tourism to be part of effective promotion mechanisms.
Osman noted that the boats fit to operate trips between Luxor and Aswan during the coming winter season number about 80 floating hotels.
Osman stressed the need to improve the quality of the trains carrying domestic tourists in terms of service and waiting stations, as they are in high demand given the rise in air ticket prices, so as to avoid any criticism or shortcomings at the start of the season with the arrival of a large number of tourists.
He explained that floating hotel prices have risen by the same percentage as the fuel price increase approved last July, as boats rely on diesel, whose price rose by 30%.
Royal Viking, Meeting Point and German Activity
For his part, Ramadan Hagagy, head of Viking Group for tourism and hotels, revealed the return of the floating hotel "Royal Viking" to Luxor in preparation for the winter season, after spending the summer season in Cairo on the Maadi Corniche. Its first winter cruise between Luxor and Aswan starts on November 6 with fully booked German and English groups, under a contract with "Meeting Point", owned by German tour operator FTI, one of the largest companies in Europe. He added that there is great interest and publicity through the company in the German and English media, which is receiving a strong positive response, noting that the boat has 67 cabins with a capacity of 135 beds.
Hagagy explained to "Travel Yalla News" that floating hotel prices have risen by only 12% in contracts with foreign tourism, despite operating costs rising by as much as 30%, because the pound's flotation offset the difference, noting that the boats qualified to operate next season will reach about 70 floating hotels between Luxor and Aswan.
He pointed out that floating hotels have split, with some focusing on domestic tourism and others on foreign tourism, as bookings rise from the main major markets targeted for cultural tourism.
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Booking Season Begins for Domestic Tourism in Luxor as Floating Hotels Prepare for Peak Season
