In the third edition of EnterpriseAM: Destination Sahel, we took a look at how developers across the North Coast are building hype around their projects. From bringing in world-class entertainment to crafting a tailored sense of exclusivity and utilizing effective marketing, it seems developers have cracked the code when it comes to putting their gated communities on the coastal map.

But Sahel is undergoing shifts that could push some vacationers to rethink the appeal of gated communities: Some are growing weary of the restrictions these compounds — particularly the larger ones — impose even on homeowners. Adding to that, projects like Modon’s Ras El Hekma, and New Alamein, are reviving an old-new concept: the open coastal city. The question now is, how can a buyer accustomed to gated living be persuaded to embrace an open-city model?

GETTING GATED COMMUNITY RESIDENTS TO STEP OUTSIDE-

There is fear that a shift from gated communities to coastal city living comes at the cost of privacy and convenience, yet experts disagree. “Framing these cities as livable year-round is what will flip the narrative from ‘vacation home’ to ‘aspirational hub,’” Abdel Azim Osman, co-founder and chief marketing and product officer at Nawy tells us. Nader Elhamy, founder and lead consultant at Toolbox Marketing Consulting, would also agree. “Cities are essential for large countries like ours. Urban planning blended with coastal living offers cultural venues, marinas, and commercial districts that go beyond what most seasonal standalone resorts can offer.” he says.

The fact of the matter is that getting residents to move beyond gated communities shouldn’t be that hard, marketing consultant and founder of Atlantica Management Dina El Adly tells EnterpriseAM. It’s less a shift in lifestyle and more one in mindset. Exclusivity goes from gated compounds and manifests on other fronts; such as exclusive buildings, amenities, and private beaches — all within a more open environment.

And at the end of the day, gated-community residents can benefit from the services of adjacent open cities while still enjoying the curated, private experience their own compound provides.

QR CODES: A NEW HARD CURRENCY-

“Several videos are trending on Tiktok featuring the most beautiful beaches across Greece and Spain, which were captured by young Egyptians, with their inside joke ‘I got into this beach without a QR code.’” Elhamy tells us. This summer, we’ve noticed a spike in tourists distraught by the proliferation of QR codes — it’s even become a comedy sketch of sorts, with several Egyptian netizens abroad “pulling pranks” by asking residents in Miami and other coastal communities for their QR codes to get their reactions. Needless to say, most of those pranked were appalled by the idea.

But are QR codes — and the exclusivity they represent — all that bad? Well, it depends on who you ask, or how you ask the question. On one hand, QR codes have become a sort of hard currency. Take a deep dive into TikTok and you’ll find some residents — and dedicated businesses — selling QR codes, which defies their purpose entirely. As such, popular Sahel destinations such as (and particularly) Marassi, have fallen victim to overcrowding, with residents increasingly voicing privacy concerns.

QR codes aren’t the problem, development master plans are. “So much of Sahel is limited to owners, and that’s expected.” Mohamed Galal, chairman of TSM Mall Management tells us. “The mistake made by the developers, however, is offering commercial attractions not found elsewhere and marketing them to the general public,” he says. Galal notes that he believes the term exclusivity to be outdated, preferring instead to call it “prohibited access.” While Galal does agree that QR codes serve their purpose, and gated communities have a right to restrict access, he notes that when publicly-marketed events come into play, things get complicated.

Sahel’s Achilles heel was not taking into consideration the habits of its present and future Egyptian residents, especially those who are family-oriented and traditionally receive lots of visitors on vacation, Galal notes. “These communities weren’t designed to provide that. You can’t have a restaurant that requires visitors to go through multiple gates and infringe on residents’ privacy,” Galal says. “The masterplan is just wrong, and people are paying the price,” he adds. The problem with exclusivity isn’t the concept itself, but rather how it was executed. This, Galal notes, should not be a problem in cities like New Alamein and Modon’s Ras El Hekma.

“If you go to Ibiza or Monaco, you’ll never find QR codes, and yet it’s still exclusive — that’s what we need to do, to adopt that kind of exclusivity,” El Adly says. “If what you offer is indeed exclusive, you won’t even have to filter out people,” she adds. While QR codes were initially presented as a solution to rising complaints of overcrowding, we’re now “feeling their consequences,” as the model has been taken to extremes, El Adly says.

Instead of policing access, why don’t developers focus on experience personalization? Elhamy suggests. This would entail setting clear expectations, community rules, and behavioral standards. “After all, it’s about fostering respectful coexistence,” he says.

Yet, this level of exclusivity — and QR codes — didn’t just happen over night. “For over 50 years, Egyptians have migrated westward along the coast in search of [exclusivity]. This pursuit is a deeply embedded purchase driver for the Egyptian summer home buyer.” Elhamy says. It’s these same buyers, however, that are now frustrated by QR codes, he notes, adding that developers are simply trying to prevent migration from their communities by going to great lengths to preserve exclusivity. “With Sahel creeping towards Libya, it might be time to shift the conversation,” he adds.

FROM VACATION TO EVERY DAY LIVING-

Large-scale projects provide the opportunity to offer a fully inclusive range of services and experiences, Managing Director and partner at BCG Cairo Bassem Fayek tells us. It can cater to every preference, accommodating both lively social hubs and quiet, tranquil spaces. This scale is also what makes it feasible to include essential infrastructure like schools and healthcare, moving beyond simple amenities, he notes.

The balancing act: Galal draws a comparison between the North Coast and Dubai’s Jumeirah Beach, noting that in terms of master planning, JBR got it right from the get-go. “You have public areas with all the amenities, private areas, and exclusive areas. Do they have an accessibility issue in JBR? No,” he says. “They took what we call regional services and separated them from the private neighborhoods and communities,” Galal adds.

The end result is still an exclusive experience, yet one that does not infringe on residents’ privacy nor limit access to tourists and beachgoers. What is happening in New Alamein, Galal believes, is swiftly following in those footsteps, correcting course from the existing exclusivity model. By having an alternative model that balances the needs of the different strata of Sahel vacationers, untapped potential can be realized. “People are going to see a new appeal — It’s just about adapting to a new kind of luxury,” El Adly adds. The North Coast’s up-and-coming cities can still maintain exclusivity, yet do so in a manner that is uncomplicated, and doesn’t outright shun certain strata. It’s about creating “a sense of belonging people don’t want to leave behind,” Elhamy says.

Add to that year-round lifestyle, health, and educational infrastructures, and you’ve got a recipe for success for a coastal city worthy of being deemed a global destination. “Alamein could evolve into a ‘Las Vegas of the Mediterranean’ — a vibrant entertainment capital that would attract regional tourism and would operate at full capacity year-round.” Elhamy says. He further notes that it won’t be sustainable if these cities are turned into developments similar to everything else on the coast. “They need to become proper cities,” he notes, citing France’s Nice and Cannes, and Greece’s Athens and Thessaloniki, where residents live year round. .

A FRESH OUTLOOK-

Hospitality is the key to targeting the right customer, Fayek says, noting that tourism to Egypt is 80–90% agency-based rather than retail/DIY, but North Coast has lacked a hospitality supply — it’s mostly second homes — so agents can’t make deals with hundreds of individual owners. Mediterranean destinations receive roughly 200 mn visitors annually and will reach 250M by 2035, according to BCG research, and with better air links, proper hospitality, and pushing tourism further towards an end-to-end business model, the North Coast should capture a 3-5% market share or 7.5-12.5 mn tourists by 2035, Fayek believes.

The lack of hotels is a major reason as to why Sahel evolved into an exclusive homeowners territory, Elhamy agrees. “[Hotels] force a shift from compound thinking to hospitality thinking — which means 24/7 infrastructure, reliable logistics, and consistent service.” “In Hurghada, Sharm, and other destinations similar to the North Coast, you don’t feel the divide that is prevalent in Sahel,” El Adly says. “Having resorts can help out with the whole ‘I want to go to Sahel but I don’t want to suffer the consequences of renting’ dilemma — people who want to escape that system can find freedom in that.”

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