Hotel Prices and the Local Economy

 This year, one of the early concerns for attendees was finding affordable lodging.   Many booked hotel rooms months ago, only to find that the reservations were cancelled and they were rebooked at much higher prices.  Rooms booked for $100 are now booking for $500 or more.  The ECO-NGO Newsletter writes that "COP observers have the right to a safe, secure and accessible accommodation, at the prices agreed to when reservations were confirmed, and not to be left out on the streets."  To me, that seems like a common-sense request ... especially since I had booked a year ago and was afraid until the moment we checked in that I would be one of the people on the street! 

However, today I took a taxi to another part of town for a sponsored panel discussion.  I ended up at a hotel that had only a skeleton security staff in what looked like a once-thriving but now abandoned part of the city. There were no residents at the hotel -- they were renting out a couple of meeting rooms to an organization for meetings. This is the other story of Sharm el-Sheikh.  Many of us are staying at the (mostly newer) hotels that have managed to stay open.  But daily we pass dozens of abandoned construction sites left undone.  Other hotels and venues are simply boarded up. Other than the construction of the COP facilities, there is no current construction.   

According to my taxi driver, Sharm el-Sheikh was booming in 2015. Resorts were being built, and the infrastructure was updated. The first blow was when the Islamic State claimed responsibility for downing a Russian plane, which caused a six-year moratorium on direct flights. Then, COVID hit tourism hard, and everything was put on hold.  Just as tourism started up again, with Russians and Ukrainians representing the bulk of the tourists, Russia invaded Ukraine.  I remember reading an article at the time talking about how the resorts were beginning to recommend different restaurants to the tourists, in an effort to keep the peace.  So now, there are no Ukrainian tourists, and the Russians are much fewer in number.  There are some tourists from other countries, but not as many.

In addition to the severe reduction in tourists for Sharm, Egypt is also facing its own financial concerns.  Six years ago, Egypt was forced to devalue its currency and take out a loan from the International Monetary Fund. Like much of the world, they are experiencing inflation, reaching 18% in September. It is estimated that the Egyptian pound has lost up to 25% of its value against the US dollar in 2022 alone, and foreign investments are dwindling. 

With this backdrop, I am just a bit more understanding about the letter from the Egyptian Hotel Association to the Sharm-el-Sheik hotels describing the UNFCCC as a "unique tourism opportunity."  This letter, as reported in the ECO-NGO Newsletter,  suggested the higher pricing models, with five-star hotels charging at least $500/night.  With much of the pricing from taxis to meals stated in US dollars, the COP must have been seen as a temporary relief from a dismal outlook.  

Unfortunately, there have not been appropriate alternatives for the young activists or others for whom even $120/night is out of reach, and suggestions like camping venues were turned down by the Egyptian organizers.  While I understand the price gouging a bit from the local perspective, there must be more done to be inclusive and inviting to the civil society observers.