Because the holidays can only be enjoyed to a limited extent this year, the Egyptian tourism company offers discounts – also in Andermatt. Despite the slump due to Corona, Sawiris assumes that business as usal will prevail in many parts of the world in winter.
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Samih Sawiris in Andermatt in front of a picture on the occasion of the laying of the foundation stone for the Alpenrose house in the Andermatt Swiss Alps resort.
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Samih Sawiris is not afraid of the corona virus. So far, there has been only one confirmed case in the worldwide tourist destinations of his company Orascom – it was a Swiss man who was on vacation in Egypt. Sawiris also commutes between Egypt, England and Switzerland during the corona crisis. The multimillionaire is currently in his holiday resort El Gouna on the Red Sea. “There is no better place to protect yourself from the virus,” says the 63-year-old in a conversation via video telephony.
Your Orascom group was well on its way into the black. Now the corona virus is putting a spanner in the works. How does that feel?
Samih Sawiris: Unfortunately, this is not a new phenomenon for us. Be it a Luxor attack, the Arab Spring or war in the Gulf region: We have experienced several crises in recent years, but we have always come out of it stronger. Today we can pull out a comprehensive catalog of measures for crisis situations, so we are no longer surprised. What is new about the current situation is that the whole world is affected. That makes it psychologically easier than if only Egypt were affected. That is why I am not overly concerned about the consequences of the corona crisis. Not because Orascom is currently financially well positioned.
Originally Orascom should have made a profit this year. That will no longer be the case. When will you achieve this goal?
This is difficult to say and depends on when airports and hotels will be fully operational again. I cannot make a forecast.
How long will you survive this financial dry spell?
Without new loans and capital increases, our existing funds will surely last until the end of 2021. After that, it could be difficult. But I assume that this crisis will not keep us busy for so long. My assumption for Egypt is that we will have business as usual again in winter.
How much money have you lost worldwide because of the corona crisis?
I dont want to know it! In addition, it is too early to take stock. The first quarter was actually not that bad because we had guests until mid-March. In Egypt we were on the way to having one of the best years. The second quarter is likely to be a disaster, of course, as spring business is lacking. The question is what happens in July and August. Depending on that, a big bump will be left in 2020 or it will be a huge disaster.
Samih Sawiris studied in Germany
The multimillionaire Samih Sawiris (63) is one of the richest men in Egypt and a member of the wealthiest family in the country. Sawiris is Chairman of the Board of Directors and majority shareholder of the listed Orascom Development Holding with headquarters in Altdorf. He owns 51 percent of the shares in Andermatt Swiss Alps. The remaining 49 percent belong to Orascom. It operates nine holiday destinations, including the Egyptian city of El Gouna on the Red Sea and Andermatt in Switzerland. Sawiris attended the German Evangelical High School in Cairo and later studied at the Technical University in Berlin.
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Are your resorts slowly starting up again?
There will be a staggered opening in Egypt, probably from the end of May. Initially there will of course be a lower occupancy rate, but if we reach 50 percent it will be enough to make money in Egypt.
On May 8, the hotels The Chedi Andermatt and Radisson Blu in Andermatt Swiss Alps will be fully operational again after the corona-related closure. Have you already received reservations?
Yes, we expect good occupancy already on the first weekend. People are tired of sitting in their apartment all the time.
How does social distancing work in a luxury hotel?
This is actually not a big problem. The chedi is very spacious. We can easily guarantee the distances between guests.
Andermatt was also close to the turnaround.
Yes. We would have made more money than we spent in Andermatt this year for the first time. Now we will have to wait further.
How far does the corona crisis throw you back?
The same applies to Andermatt as to the whole group: only when the borders are open and the airports have started normal operations will we see what happens next.
In the past few years, you have invested over a billion francs in the development of Andermatt Swiss Alps and privately own the majority of 51 percent, the rest belongs to Orascom Development Holding AG. What about the plans for Orascom to take over the majority?
This plan has been postponed for a year; Orascom will not take over the majority before 2021.
Did you have a good skiing season in Andermatt until it closed?
Yes, very much, and we are optimistic about the next season. We have had bottlenecks and teething problems here and there in the past, which we were able to improve last winter and will not have again next year. In principle, we were able to record an increase in sales in all segments, i.e. hotels, skiing and real estate.
Andermatt is primarily considered a winter destination.
The share of sales that we make in the summer is increasing. The golf course is excellent. We didn’t just build a concert hall for my personal pleasure. Andermatt will be a festival destination in summer, companies are also becoming increasingly interested in conferences, and we are also expanding bike routes and hiking trails and expanding the summer offer. We earn money in Andermatt in summer, the off-seasons before and after summer are still deficient. I am confident that we will achieve what we have always said: Andermatt Swiss Alps will be a year-round destination.
How does the sale of vacation rentals work?
Sales have continued relatively normally, we also have a lot of new reservations. I was amazed that people bought apartments during the corona crisis. I’m assuming we’ll sell a little less than 2019, but not dramatically less. We experience the same thing in the Arab world. I can only explain it this way: People had less to do in the lockdown and started dreaming of a second home.
Could Swiss apartment owners even go to Andermatt?
Yes, apartment owners could of course use their property. So far, however, a rental has not been permitted. From May 8th this will change again. But of course it was only partially fun when everything was closed. With the opening, things will change again.
A discount battle is now likely to occur in Swiss tourism. Are you also participating?
Discounts are the fairest solution. Because of the fear of the virus, social distancing and other measures, people around the world are no longer getting the best vacation. You have to accommodate them in price. We will offer a discount of up to 20 percent. This means that you can book a room in the Chedi from CHF 400, in the Radisson from CHF 175.
Orascom CEO Khaled Bichara was killed in a car accident in Egypt in January. Since then, in addition to your office as Chairman of the Board of Directors, you have also been temporarily CEO. How do you deal with this double burden?
Khaled organized the company very well. I have to intervene less than I thought. He rightly delegated a lot to the different country CEOs, so the CEO role is not an undue additional burden for me. I also get really great support from the board of directors.
How is the search for a permanent CEO going?
We have a few candidates and hope to be able to present a name later this year. However, we do not have any time pressure because, as I said, Khaled has built up a good structure that can do without a permanent CEO for a long time. This gives us more time to find the best candidate.
Ten days ago, you took over the majority of the ailing German travel group FTI after you saved the company in 2014. Why do they do that?
On the one hand, I couldn’t be responsible if a company in which I was involved had to go bankrupt with thousands of employees. On the other hand, one should not forget that FTI has made an enormous contribution in recent years to fill new Orascom destinations faster. For us, survival of the FTI is essential.
How will tourism develop after the corona crisis?
I don’t believe that there is a life before and after Corona. I have learned one thing from the many crises of the past forty years: people have a short memory and return to old habits surprisingly quickly. As soon as a drug or a vaccine is available, everything will soon go back to the way it used to be. The important thing now, however, is that you don’t take too much time to start the economy up again.
How do you judge the state measures against the spread of the pandemic?
In my opinion, Switzerland reacted best of all countries. Short-time work permits at Andermatt Swiss Alps were issued very quickly. Germany also reacted quickly and generously. There are no such means in Egypt. We had to spend our own money there to pay bridging wages. But that is well invested money, because people appreciate it if you take care of them in a crisis.
The loosening is not going too fast for you?
Yes, of course. I had to close all of my hotels! But I’m careful with my criticism. Much of the corona virus is still unknown and is only gradually coming to light. And afterwards you are always smarter. With the latest data and figures available, it seems clear to me that the restrictions were sometimes too drastic. The focus would probably have been much more on the older sections of the population. They should have been isolated even more, combined with extensive support. As the canton of Uri intended. Then one would not have had to choke the economy as badly.
They have financial interests in FC Luzern, HC Ambri-Piotta and El Gouna FC. Sport also suffers from corona measures. Are you rushing to help the clubs now?
At FC Luzern this is nothing unusual. So far, however, no invoice has been received (laughs). Seriously, I expect money will be needed, but that’s not my priority right now.
At FC Luzern there has also been a dispute among shareholders for months.
That is now in the background. But if an investor later wants to take over the FCL, I would like the existing shareholders to exit if the offer is right and the buyer can offer the FCL good development prospects.
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