Today we talk tourism. Every Egyptian knows the Mugamma — the 14-floor building in Tahrir Square where, for half a century, the state kept its paperwork and its queues. Morgan Stanley recently counted resilient tourism among the buffers protecting Egypt's external finances. The question facing Egypt is no longer whether its heritage has value, but whether that value can be made bankable. Joining me is Elhamy ElZayat, Founder and CEO of Emeco Travel and former Chairman of the Egyptian Tourism Federation. Mr. ElZayat, welcome to Fintech TV.
Thank you very much. Welcome.
When one of these assets first lands on your board table, what is the first question you ask to decide whether an investor will ever want it?
First, we have to imagine what we want and then offer it to investors — not the other way around. We have roundtable discussions in the board. What we decide, we then tender to investors. The Mugamma is an excellent example — it was the first deal we made in this formula. When we thought of it, we asked: what could you make out of this building? We decided on a 160-room hotel with suites, a business centre, a medical area, and food offerings. Then we started tendering and we found very good investors — one core Egyptian investor with three American investors. They are working on it from the inside right now. You cannot see it from outside yet, but they are moving.
Morgan Stanley called Egyptian tourism resilient. Do you agree and what actually makes its dollars durable?
The World Tourism Organisation called Egyptian tourism resilient long before anyone else. They even asked Egypt's then-Minister of Tourism to become ambassador in charge of tourism problems globally — because he had managed so many cases where everyone said tourism would never flourish in Egypt again. But it did. That is why they called it resilient. It is bankable because despite everything we have been through — 2001, the Iraq war, regional conflicts — tourism remained a very important source of revenue and hard currency.
The Mugamma has no Nile view and no classic luxury credentials. How did you make that work for investors?
Initially we thought about a five-star hotel — but there are no views. All competitors have Nile views. So we adjusted. There is another hotel nearby, a four-star in the same area, no views either, and it has not had one empty room since opening. Why? Because it has the facilities for business travellers. Business tourism is very important — especially in difficult times. These people already have investments in Egypt or are contemplating them. They will come regardless of regional tension. That was our target.
What is next in the pipeline beyond the Mugamma?
We are finalising a huge project overlooking the Nile — on the site of the former National Social Union building that was burned during the 2015 events. There is a fantastic design: two towers, one office building and one with suites and hotel rooms, reaching 220 metres with 80 floors. The light was studied in a way that it will pass through to illuminate the Egyptian Museum behind it. People are already interested.
What structure actually gets international capital to sign a long-term concession and equity partnership?
Strategy depends first on who the core investor in Egypt is. The core investor is crucial to attract others. What we are seeing is a lot of interest in historical hotels — in Luxor, Aswan, El Alamein, and other parts of Egypt. Four Seasons will most probably take over the Winter Palace in Luxor — a beautiful property overlooking the Nile, long neglected. As an Egyptian, I believe we are creative. We have managed to overcome all the problems we have been through, and we will continue to do so.
Thank you very much for being with us today, Mr. ElZayat.
Thank you. It is my pleasure.
