Just when you thought Egypt was close to saturation point for attracting overseas tourists, fresh holiday homes in Egypt developments on the southern Red Sea coast are gearing up to draw even greater numbers. Port Ghalib, an integrated port and resort community being built on 18 kilometers of pristine Red Sea coastline some 210 kilometers south of Hurghada, is moving from blueprint to reality as marketing efforts begin in earnest on the first batch of prime residential units later this month. Developed by Kuwait’s M.A. Kharafi Group, the project is following a $1.2 billion master plan commenced in 2000. The plan envisions a multi-purpose resort community – served by air and sea – comprised of nine uniquely themed villages that include luxury residential units, resort hotels, retail space, a golf course, a yacht club and conference center – all served by privately operated water desalinization, sewage treatment and power production facilities. Whereas other resorts accommodate Egypt’s mainstream or already existing hotels brands, Port Ghalib will introduce a spa developed in collaboration with Sun International, the creators of the famed Sun City in South Africa. Already in operation is the 200-room Coral Beach Diving Hotel, a dedicated diving resort that opened I September 2005. Three themed luxury resort hotels under construction will add 950 rooms by 2007. The proximity of Marsa Alam International Airport, just five minutes’ drive from port Ghalib, has had undeniable impact on the region’s rooms inventory. “In 1998 after we were awarded the airport BOT (build, operate, transfer) contract, there were about 800 rooms in the area served by the airport. In 2001, when we opened the airport, there were about 1500 rooms in the area. At the end of 2005, there were 7500 rooms in the area served by the airport.” Says James Pringle, senior counselor for the M.A Kharafi Group. “The airport has been a major driver of tourism investments in the area, creating 25,000 new jobs and establishing the Masa Alam destination on the international market.” The privately operated airport is intended to feed the Port Ghalib resort community, which is being developed in three phases over 12 years. All area dedicated to te Marina Village core project- Port Ghalib International Marina, the three luxury hotels and the Sun International spa, the conference and exhibition center, 15,000 square meters of retail and entertainment space, and 480 waterfront residences – is planned for launch in July 2007, about six months behind schedule. Pringle says the delay was due to unforeseeable circumstances. “Contractors have had a difficult time getting security clearances for workers since the Sharm Al Sheikh [bombing] incident in July 2005, which in turn affected execution productivity by about 60%, “he explains. “Today, we are working closely with authorities now that the tragedy is behind us. We anticipate opening next year.” The construction holdup has consequently delayed the marketing campaign of the resort’s residential units. Pringle relates that M.A. Kharafi Group president Nasser Kharafi felt that unlike Dubai, where units are often sold off-plan before anything I actually built, it was important that the Port Ghalib project approach completion before any sales and promotions began. “Due to the challenges of Egypt and for our own credibility, Mr. Kharafi felt Port Ghalib had to be very well under construction before we even start marketing houses,” he said. “This way, people could come see, feel and touch the infrastructure, the marina, the hotels, the housing, and have confidence in the development and company.” Pringle is bullish on the prospects. He predicts that when the marketing campaign for the first 480 residential units begins later this month, Gulf and European buyers will snap them up. “We expect to sell out 480 units almost immediately.” He is equally confident about the project’s future. “Port Ghalib is a long-term project, which started when Egypt was receiving just 2 million visitors a year. We forecast that Egypt will get 15 to 20 million visitors annually by the time Port Ghalib’s final, longer-term phase is up and running,” he said.