UA-R-GC-1914-01-01-1978-03-02_Page-028

-2- can be estimated at $250 return from Europe and $500 return from the U.S. (this includes air fares within Egypt). This will make a ten-day trip at $592 from Europe and $842 from the U.S. which could be afforded by a broad range of middle-income tour­ists even if the fees to tour operators are added to this. Based upon our market survey it is esti­mated that 50% of the rooms in Cairo, 80% of the rooms in Luxor and on the Nile boat and ~O % of the rooms in Hourghada will be sold to this ma~ket through tour operators. The remainder of the rooms in Cairo will be sold to business visitors and expatriate residents and the remaind~of the rooms in Hourghada will be sold to Red Sea visitors such as diver~ fishermen and sun worshippers. The management company will be a joint venture between a hotel operating group, a marketing team, and Cairo Properties. It will be in charge of the overall planning and implementation of each project and be responsible for the operations and coordination of the chain. The total cost of the plan will be approximately as follows: Nile Vessel (66 cabins) $4,000,000 - Cairo Hotel (200 rooms) 5,000,000 - - Hourghada Motel (100 rooms)2,200,000 - $25,000/rm 22,000/rm "" , , " , . " ,; - Hovercraft (100 passengers)1,300,000 .. Luxor Motel (lOa rooms) '2',5'00,000- $15,000,000 2S, OOOirm, ' • Consisting of: - Equity - Debt $6,000,000 9,000,000 (10% interest, repaid over, seven years) The above plan could be e~ecuted and in operation , within 12 months. Estimated gross operating profits will be approximately as follo~s in the second year from the beginning of operatio;ls: Hi + , •• '" , ;