Good morning, friends, and welcome to the second installment of our special series EnterpriseAM: Destination Sahel, where the season has officially kicked-off. There was a noticeable difference in traffic on the weekend as cars started to line up at the entrances of Hacineda White and Marassi, Gourmet began running out of staples, and daytime temperatures leapt upward, although it’s still refreshingly cool in the evenings. (Spain and Greece, please don’t give us the evil eye).

The chatter last weekend was all about three things: the soaring price of ice (a 3kg bag of cubes is going for EGP 117-130), our disappearing sand (beach erosion is real and many compounds are panicking about their rapidly shrinking coastlines and looking for ways to combat climate change by building very expensive wave breakers), and fires.

Yes, fires. Not just the Ramses Central fire that knocked out the internet, but one that erupted at an elaborate party venue on the beach at Waterway North Coast on Saturday. The incident happened the day after thousands of people flocked to the venue for a party that featured international DJs (an every weekend occurrence now in Sahel). There were no injuries reported and investigators are still probing the cause.

The fire sent parental worrying (and the rumor mill) into overdrive: What if it had happened the day of the event? Who’s responsible? How can we keep these things from happening?

And so it is official: The start of Sahel season. We hope that you and your families stay safe, cool, hydrated and healthy.

IN TODAY’S ISSUE- We sat down with our friend Dasha Badrawi, the executive vice  chairman of Marakez, for a special episode of our Making It podcast. We have a rundown of healthcare options and fitness facilities on the Coast, an overview of the F&B market in Sahel and much more.

THE ARABS ARE COMING, THE ARABS ARE COMING…

The coast is seeing one of its busiest summer seasons on record, with hotel occupancy hitting 100% across popular destinations from Alamein to Sidi Abdel Rahman, Mohamed Fathy, head of the Recreational Tourism Committee at the Restaurant and Establishment Chamber, told us.

Arab tourists now account for 60-70% of hotel guests on the North Coast, with the balance made up mostly of Egyptians. “It’s hard to find a booking anywhere in Sahel this summer — entertainment venues, concerts, and big-name performers have driven up demand, especially among Gulf nationals,” Fathy said.

The influx is driving up prices across the board: Service prices are expected to continue rising in the second half of July and peak in August when Gulf tourism peaks. Arab tourists now spend an average of USD 500-600 per day on dining and entertainment, with hotel stays averaging USD 800 per night — and rising to as much as USD 1.2k on high-demand nights.

Still, the lack of hotel rooms remains a drag, Fathy says, pushing many Gulf visitors to opt for rentals instead, where spending is often lower. That could soon change: At least seven new hotels are in the pipeline across the coast. (A point that Dasha Badrawi comes back to in our Making It interview.)

Meanwhile, a government proposal to allow foreigners in Sahel to pay in USD — similar to Red Sea resorts — is under review, a government source confirmed. For now, all prices are listed in EGP, though 90% of Arab visitors pay by card in foreign currencies, creating a natural inflow of FX.

Go West — this is our destiny (with apologies to the Village People): The boom this season is also pulling global brands and service providers further west, with more activity shifting from Marina to developments beyond Sidi Abdel Rahman. “This is the first year we’ve seen major events outside of the usual hotspots — a sign of how both supply and demand are growing in tandem,” Fathy said.

MEANWHILE- Egypt is still waiting to hear from Modon on the first launch of its Ras El Hekma megaproject. Speculation is mounting on social media about the size and pricing of the first phase, as observers await the Emirati company’s first comments on what it’s planning to do with what many in the industry could become the premier destination in the western Mediterranean.

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