Egypt Hopes for Hotel Market Revival

Egyptian government dignitaries and local celebrities last November gathered on the banks of the Nile for the opening of Egypt's only Ritz-Carlton hotel complete with a lavish dinner and traditional dancers.

The glamorous launch stood in contrast with Egypt's ailing tourism sector, which has suffered from a drop in arrivals mainly because of concerns over the country's security situation and political instability.

Still, those forging ahead with new openings are putting on a strong face. While tourism is in a deep slump, they point to such positive factors as the increase of domestic travel among Egyptian and regional businessmen.

"We don't have a short-term mentality, we've been here for a long time," said Bob Kharazmi, global officer of worldwide operations at the Ritz-Carlton Hotel Company.

Cairo's hotel market currently has a total of 28,030 rooms, according to some estimates, including the Ritz-Carlton and a new hotel opened by Munich-based chain Kempinski last year.