Earlier in March, when news of an Egyptian law that would eliminate visa-on-arrival at the airport broke, the cries of small tourism business owners became loud enough for people to take notice of a market segment that is rarely spoken of.
It was a cry loud enough to question who were the actual beneficiaries of the government’s efforts to boost tourism and who remain the underdogs of the industry? In a three-part series, StepFeed investigates: Can small Egyptian tourism operators withstand another blow? Monday, StepFeed spoke to the owner of a budget hotel in Downtown Cairo about his struggle to remain open and today we look to Upper Egypt for a different take.
Away from Cairo, in the far end of Upper Egypt’s Marsa Alam is the eco-lodge Deep South. Marsa Alam, which lies on the Red Sea, is known for its laid-back and chill atmosphere, distant from any security concerns. But this hasn't left the camp's owner, Karim Nour El-Din, any happier with the current status of tourism, nor where it’s headed.
After spending 10 years in the diving centers of Sharm El Sheikh, Nour El-Din got the land where his camp rests in 2001, leasing it for semi-ecotourism investments and camp sites.
For a couple of years, Deep South was a diving center that, thanks to a substantial revenue stream, Nour El-Din was able to refurbish into an African-style camp.
Yet for Nour El-Din, the first battle he fought wasn’t one against a recession, but rather the competition posed by bigger travel agencies and hotels that formed alliances and monopolized the market.
“It was natural for them to offer people more appealing packages than those of the smaller camps,” Nour El-Din says, explaining that the revenue Deep South made was no match to that which the bigger alliances made from the hundreds or thousands of vacationers they hosted.
“The big hotels’ all-inclusive policy kills everything around it,” he says, pointing out how they deprive the smaller businesses of the surrounding cities, from shops to supermarkets and restaurants or cafés, of any chance at making profit.
“A while back, the big company owners used to buy the successful small businesses. Now, they just monopolize the market, and force any young investors out,” Nour El-Din says.
Despite the challenges, Nour El-Din managed to grow his business, and in 2010 Deep South was registered as the only diving eco-lodge on one of the biggest Scandinavian tour operators.
“We were pushing for a different approach through green tourism, which was prevalent in foreign markets, yet not as popular in Egypt.”
But it wasn’t long before everything crumbled in 2011.
“The tour operator shut down in Egypt, and all its tours were diverted to Turkey, Jordan and Israel,” Nour El-Din says.
Although the market had become more challenging than ever, Nour El-Din had a rather different idea for a business rebound. In 2013, he launched the music festival 3alganoob, which started off with three local bands, 350 campers and three days of workshops, yoga, arts and crafts, and music.
“We redirected our attention to a different market, trying to attract the younger travelers who are likely college students,” he said, “We were trying to revive not only our business, but the businesses of those around us as well.”
3alganoob proved to be a success, and was repeated in 2014 and 2015.
“To be honest, tourism in Egypt is history,” Nour El-Din says with barely any optimism in his voice.
“Unless the entire system changes, there’s nothing that’ll make much difference. And I personally can’t change the system,” he says. “Until that happens, I’ll just enjoy staying away from the city and chilling with my dog by the sea. Here, the camp becomes home.”
Part I: A Small Hotel Business Struggles in Downtown Cairo
Part III: Tour Operator Looks to the Unconventional For Success