Helnan Hotels: A Timless Traditional, a Modern Vision
Updated 12/17/2024 8:00:00 AM
Arab Finance: In an exclusive interview with Arab Finance, Hossam Hassan, Managing Director of Helnan International Hotels, has called for a media marketing plan to promote Egyptian tourism abroad.
While praising the recent surge in cultural tourism, he emphasized the need to pay attention to industries and services that complement the tourism industry.
Hassan also added that Helnan Hotels will expand in Egypt in the coming period by managing some hotels and launching the third phase of the Helnan Hotel and Resort in Port Said in early 2025.
1-Could you please provide an overview of the history of Helnan International Hotels?
Helnan Group is a Danish-Egyptian company, founded by the late Enan Galaly in the early 1980s. It began with a single hotel in Denmark, then grew into a group of hotels.
In the late 1980s, Galaly moved from Denmark to Egypt, his country of origin. He started his business in Egypt with the Shepherd and Palestine hotels. Eventually, he expanded efforts and managed a group of 11 hotels in Egypt.
Since then, he stayed in Egypt, proud of his loyalty to the country he grew up in. Galaly, who held Danish citizenship, also had extensive international relations across the globe. He owned about 12 hotels in Europe, Morocco, and Egypt.
Helnan had been one of the pioneering groups that operate across different Egyptian cities like Sharm El-Sheikh, Port Said, Fayed, Ras Sedr, and Fayoum, elevating tourism.
Galaly passed away last year, but the group continues to follow the same approach and methods we learned from him.
The group remains committed to his practices, ensuring to preserve managing our hotel assets. Now, we are working on developing hotels under management. We currently manage seven hotels in Egypt as some contracts expired.
2-What expansions will the group undertake in Egypt in the coming period?
We will be undertaking some expansions in Egypt in the coming period. We are currently in negotiations to manage some new hotels.
Currently, we are expanding in some existing hotels after completing the second phase of the Helnan Port Said Hotel and Resort expansion. We are getting ready to open the third phase at the beginning of the new year.
The third phase of expansion will include the addition of hotel rooms to reach 220 rooms and a new conference hall that can accommodate 1,500 people at a five-star level.
We are also preparing to complete a new phase of expansion in Alexandria.
3-As a tourism expert and the managing director of Helnan International Group, how do you assess the current state of tourism in Egypt?
Egypt aims to attract around 14 million tourists annually. By the end of 2024, tourist arrivals in Egypt are expected to reach 15.5 million people. This year marks one of the great years for the Egyptian tourism industry as the sector has started to recover, whether in Cairo, Alexandria, Hurghada, Luxor, or Aswan.
Outbound tourism has started to grow and improve despite the surrounding regional circumstances that affect us in the first place. Cultural tourism is flourishing in Luxor, Aswan, and Cairo.
Additionally, the trial opening of the Grand Egyptian Museum will attract tourists to Egypt, especially since cultural tourism is mainly for wealthy tourists. The country targets this type of tourism for visitors’ financial ability to spend, unlike tourists falling under other types like beach tourism.
Egypt’s cultural tourism is currently thriving because of its significant return and economic system.
Holiday tourism is at its best in Marsa Alam and Hurghada now. This indicates how diverse tourism is in Egypt, as the country offers several attractive types of tourism, such as medical tourism.
In Safaga, medical tourism plays a great role in treating rheumatoid arthritis, which makes it one of the best sources of income. If given attention, it would be a main source of income for the country.
For example, Türkiye excels in attracting those seeking hair transplants, which is a source of income for the country. Egypt also has the advantage of ecotourism in Siwa Oasis, Dakhla and Kharga oases, and Safaga.
Attention should be paid to this type of tourism. These locations, with their unique nature and desert environments, can attract nature enthusiasts if marketed effectively.
In general, Egypt needs to fully utilize all available opportunities, including beach, cultural, medical, and archaeological tourism.
With its infrastructure, hotels, airports, roads, and more, Egypt is well-positioned to attract foreign tourists.
4-How do you see tourism marketing in Egypt?
Egypt should actively target European markets by exploring influencers there. For example, inviting influential European journalists, bloggers, and vloggers to experience Egypt firsthand can create a ripple effect on social media and encourage their audience to visit.
Highlighting Egypt’s safety, despite regional challenges, is a key to shifting perceptions and attracting both European and American tourists.
5-How can Egypt appeal to European tourists?
Engaging Europeans requires tapping into their interests. For example, we should learn if they are interested in ecotourism, cultural tourism, historical sites, or others.
6-Can Egypt’s current hotel room capacity support the goal of attracting 30 million tourists by 2028?
Egypt works on many initiatives, including those by the Central Bank of Egypt (CBE) or other banks. These initiatives aim to boost investment in the tourism sector and increase the number of hotel rooms.
Hotel rooms are a main component of tourism infrastructure for being a source of foreign currency and tax revenue.
They also contribute to offering direct and indirect job opportunities, with each hotel room providing one direct job and five indirect jobs.
Attention should be paid as well to complementary industries, such as airports and transportation means like taxis. This would create an integrated tourism ecosystem that competes globally.
7-How do tourists’ impressions after leaving Egypt influence their likelihood of returning?
Egypt must learn from leading global tourism countries like France, Spain, and Italy in how they treat tourists. We do not need to reinvent the wheel.
In Egypt, we already have a very good tourism infrastructure, including airports, hotels, and roads. However, we need to be more aware of how we deal with tourists.
For example, a taxi driver should not focus solely on quick profits from tourists but should consider the tourist's overall experience. A positive impression encourages tourists to visit Egypt again and recommend it to others.
We have already seen great examples in both Luxor and Aswan, where locals deal with tourists in a civilized manner.
8-Has Helnan Hotels started adopting sustainable practices to align with global interest in environmental sustainability?
Yes, indeed! All our hotels have received green stars from the European Union (EU), demonstrating our commitment to environmental standards.
Complying with environmental standards is required by many organizations and bodies, and we follow them. Implementing these practices is a top priority for us because our hotels in Denmark have long adhered to environmental sustainability standards.
This allowed us to follow similar measures in Egypt, ensuring clean energy and food safety. So, we continuously develop this area as we have competencies to rely on in this field.
9-How does Helnan address the shortage of skilled labor in the hospitality and tourism sectors?
The COVID-19 pandemic caused many workers in the tourism and hospitality industry to leave their jobs and shift to other industries, creating a labor shortage.
Fortunately, we managed to retain many of our employees during that period. Before the pandemic, we trained our employees in Denmark, where they attended Danish hotel schools and completed their training in our hotels. These employees now form the core of some of our departments.
We are keen to continue training our employees as we believe that human capital is our most valuable asset. Although we face a shortage in some departments when opening new hotels, we overcome this by redistributing trained staff from our existing locations.
For example, during the opening of Helnan Port Said, we sent some trained employees there. Helnan Port Said now receives excellent customer feedback.
10-What are Egypt's main competitors in the tourism sector?
Egypt has immense tourism potential due to its diverse tourism offerings. However, the country needs to rehabilitate and market its current image, particularly its safety, as some mistakenly believe it is affected by regional tensions.
Therefore, it is crucial to communicate the correct image to people in Europe and the US and change their misconceptions.
We can leverage international models like international football players Mohamed Salah and Omar Marmoush to promote tourism in Egypt.
Also, advertising global platforms like the English Premier League or the German League, as other nations do, can enhance the country’s image.
Ultimately, a well-thought-out media marketing plan is essential to promote Egyptian tourism.
11-How do you assess domestic tourism in Egypt?
Domestic tourism, including holiday travel, is a cornerstone of the sector. However, one area needing focus is honeymoon tourism.
Instead of many tourists traveling to Asia, destinations like Malaysia or Indonesia, for honeymoons, Egypt can promote this type of tourism.
Egypt offers tourist attractions that are unparalleled by competitors and we should promote domestic tourism and encourage citizens to vacation within Egypt instead of traveling abroad.
12-How has local inflation affected tourism in Egypt?
Inflation is a double-edged sword. Tourists, whether from Europe, the US, or the Arab World, can visit Egypt now at a fraction of the cost compared to their home countries due to the exchange rate and the rise of the dollar against the Egyptian pound.
That is why we should take advantage of this point and work on promoting it to attract more tourists.
For instance, a meal in Egypt might cost as little as $15 or €15, which is far more affordable than similar options in the US or Europe.
Not to mention Egypt’s favorable climate as a key tool to attract more tourists.
13-Finally, how do you see the challenges facing Egypt’s tourism sector?
The mindset of those dealing with tourists is one significant challenge that must be changed.
It is also crucial to convey to the world that Egypt is safe, while promoting the different types of tourism we offer.
I am very pleased with the state's plan to develop the pyramids site through private-sector involvement. Tourism in Egypt also needs better organization and enhanced services at key sites. This will ensure tourists leave with positive feedback.
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