Go Gouna

Technische Universität Berlin

dp UD 2018 | 2

Go Gouna Urban Development Discussion Paper Nr. 2018 | 2 Berlin, October 2018

Urban Development Discussion Paper Nr. 2018 | 2

2

Campus El Gouna – 2018

Imprint

Imprint Volume:

Urban Development Discussion Papers

Issue Nr.:

2018 | 2

Issue Title:

Go Gouna

Editors:

Technische Universität Berlin, Zentralinstitut El Gouna, D epartment of Urban Development: Prof. Dr. Rudolf Schäfer, Dr.-Ing. Hassan Elmouelhi, Papon Dev M.Sc., ir. Paulus van der Kuil M.Sc., Ira Lemm M.A., Eslam Mahdy M.Sc., Martin Meyer M.Sc.

Author:

Saeed Nabbah, Abdulmohaimen Rajjoub, Tammam Saleh Agha, Mohommad Shakfa

Place, Date:

Berlin, 13th of October 2018

ISBN: 978-3-9820367-0-0

9 783982 036700

Department of Urban Development

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Urban Development Discussion Paper Nr. 2018 | 2

FOREWORD In October 2018, the Department of Urban Development at the Campus El Gouna started the publication series “Urban Development Discussion Papers”. In these discussion papers – published at irregular intervals – we present the results of our own research projects to an interested audience. The publications consist out of student project reports, master theses, doctoral dissertations and other research. Each paper is digitally available in PDF format on our website and as print on demand. We invite you to comment, criticise and discuss our research. On behalf of the editors

Prof. Dr. Rudolf Schäfer Study Dean Urban Development

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Campus El Gouna – 2018

Technische Universität Berlin MSc Urban Development A Feasibility Study of Regeneration Strategy Downtown & El-Bustan in El Gouna, Red Sea, Egypt

Submitted to: Prof. Dr. Rudolf Schäfer Submitted by: Abdulmohaimen Rajjoub Mohammad Shakfa Saeed Nabbah Tammam Saleh Agha

Second Term Project Report Summer Semester 2018

Date: September 2nd, 2018

Table of Content Note from the Editors .................................................................................................. 7 Management Summary .............................................................................................. 9 Methodology ............................................................................................................. 11 1. Introduction ........................................................................................................... 12 2. Location (Macro, Meso, Micro scales) .................................................................. 13 3. Site Analysis ......................................................................................................... 15 3.1. Spatial Analysis .............................................................................................. 15 3.2. Traffic Structure .............................................................................................. 19 3.3. Economic Structure (Facilities, Services, and Economic Clusters) ................ 28 3.4. Socio-Demographic Structure ........................................................................ 29 3.5. Ecological Structure ....................................................................................... 30 3.6. Investment Climate......................................................................................... 34 3.7. Administrative and legal framework................................................................ 34 3.8. Public Law ...................................................................................................... 36 3.9. Civil Law ......................................................................................................... 36 4. Market Analysis .................................................................................................... 39 4.1. Housing Market .............................................................................................. 39 4.2. Commercial Market ........................................................................................ 43 4.3. Tourism Market .............................................................................................. 48 4.4. Start-Ups and Creative Industries Market ...................................................... 49 5. Stakeholders Analysis .......................................................................................... 59 6. Conclusion (Main Finding from Market and Site Analysis) ................................... 60 6.1. Site Analysis (Main Findings) ......................................................................... 60 6.2. Market Analysis (Main Findings) .................................................................... 60 7. Development Concept .......................................................................................... 62 7.1. Approach for Development ............................................................................. 62 7.2. Vision Facts .................................................................................................... 63 7.3. The objective of Development Proposal ......................................................... 63 7.4. Alternatives of Proposed Program.................................................................. 64 7.5. Program Formulation Methodology ................................................................ 70 8. Detailed Elaboration ............................................................................................. 72 8.1. Urban Layout and Architecture ....................................................................... 72 8.2. Sociology ........................................................................................................ 84 8.3. Ecology .......................................................................................................... 87 8.4. Benchmarks for selected building projects ..................................................... 88

Regeneration Strategy Downtown – El-Bustan

5

9. Infrastructure ........................................................................................................ 93 9.1. Transportation and Mobility Guidelines .......................................................... 93 9.2. Energy Guidelines .......................................................................................... 97 10. Economic feasibility ............................................................................................ 99 10.1. Economic Development Strategy Downtown................................................ 99 10.2. Economic Strategy El-Bustan ....................................................................... 99 10.3. Financial Feasibility Downtown .................................................................. 101 10.4. Rents and Yields ........................................................................................ 101 10.5. Net Cash Flow Settings .............................................................................. 102 10.6. Development and Construction Costs ........................................................ 102 10.7. Before tax Cash Flow and IRR, conclusion ................................................ 104 11. Legal Framework .............................................................................................. 105 11.1. Public Law .................................................................................................. 105 11.2. Civil Law ..................................................................................................... 105 12. Project Management......................................................................................... 106 12.1. Stakeholders Management Strategy .......................................................... 106 12.2. Project Management Strategy .................................................................... 107 12.3. SWOT Analysis .......................................................................................... 109 13. Feasibility Conclusions ..................................................................................... 111 Table of Figures...................................................................................................... 112 List of Tables .......................................................................................................... 117 References ............................................................................................................. 118 Appendixes ............................................................................................................. 123


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Note from the Editors The authors of this report are students of the Master of Science Program in Urban Development of the Technische Universität Berlin, Zentralinstitut El Gouna (TUB UD). The assignment was part of the Module ID02 in the curriculum of TUB UD. In this Module, the students are requested to set up a development strategy and feasibility study for an urban renewal site. Coordination and teaching activities were taken care of by research associates of TUB UD under supervision of Prof. Dr. Rudolf Schäfer. The project ran from April 2018 until July 2018. In total, 16 Students in 2 teams participated in the project. In the semester of the summer of 2018, the assignment consisted of a development strategy and feasibility study for two sites in El Gouna, Egypt. El Gouna is a privately managed town, owned by Orascom Hotels and Development (Orascom). The sites were chosen in close cooperation with the town management of Orascom, for both sites Orascom was already investigating development and regeneration options and starting up measures. The students were requested to investigate a program of functions, housing and services that could diversify the existing program of El Gouna. The focus for this diversification strategy are two sites within the town; the Downtown Area as a site for the introduction of new functions and services that appeal to a younger and lower income group; and the area of Al Bustan where focus should be on the improvement of services and living conditions for employees working in the local hospitality sector. To create space for the establishment of new functions and services Orascom already started to relocate their hospitality sector employees currently living in Downtown to Al Bustan. In the assignment Orascom requested the students to seek a significant share of affordable housing in their development strategies and feasibility studies. The assignment consisted of site visits, research activities, presentations to the supervisors and stakeholder Orascom and the final report. We would like to thank Mr. Haitham Ali, Mr. Mahmoud El Baroudi, Mr. Samuel Hanna, Ms. Jasmin Hussein, Ms. Sandy Sawiris, Mr. Mohamed El Fouly, Mr. Nahawet Aly and Ms. Caroline Kamel of Orascom very much for their contribution in providing all the data and information the students required during the project. Without their guidance Regeneration Strategy Downtown – El-Bustan

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and support the students would not have been able develop a strategy and set up a feasibility scenario that meet the actual requirements of Orascom. Our special thanks go to Mr. Mahmoud El Baroudi for giving the permission to use the data provided and allow the students to investigate into the various development and feasibility options for El Gouna. Finally, our very special thanks go to Ms. Hussein of Orascom Town Management for the coordination of all data provided by Orascom, the requirements of the diversification strategy and her unrelenting enthusiasm and support of the project. Thanks to the continuous input and guidance of Orascom both student teams were able to present a diversification strategy and feasibility study that reflect realistic options for implementation.


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Management Summary "Go Gouna" is an urban development plan coming from the development of the regeneration strategy concepts for the Downtown and El-Bustan area at El Gouna, Red Sea governorate, Egypt. This project comes as a result of the cooperation between Urban Development Department in TU Berlin campus El Gouna and Orascom Development and Town Management. Downtown as a study area is a mixture of residential, commercial and tourism zones, while El-Bustan is a workers’ neighborhood includes some commercial and educational facilities besides different types of housing blocks. The project aims to diversify the community in El Gouna and introduce new target groups, including a dynamic resident group, as well as improve the quality of life for the workers' families in El-Bustan. This developmental plan started with a detailed analysis of the area through a comprehensive market and site analysis. The market analysis was carried out to understand the supply and demand of the existing and potential markets which are Housing, Commercial, privately managed town, and Start-Ups and Creative Industries market. This analysis shows there are potentials for new housing options in Downtown, for different incomes, and affordable housing, in El-Bustan, for the young workers' families. It also shows that there is an opportunity to diversify the commercial market in both of Downtown and El-Bustan. In addition, there is an unfairly distributed and abundant supply in tourism facilities between El Gouna areas. As well as, there is a potential for settling shared offices and related facilities for Start-Ups and Creative Industries. The site analysis of the area has been studied by focusing on the identified market potentials and the capacity of the site to establishing the facilities for the new target groups. This analysis is based on different aspects which are the spatial analysis, Mobility, Economic activities analysis, Demography and Social profile, Ecology and Natural Environment, Investment climate, and administrative system analysis. Furthermore, a stakeholder analysis was conducted to identify their needs as well as their influences and interests. A development approach has been adopted. Urban, social and economic objectives of the development proposal have been set. After that, four alternatives of the proposed Regeneration Strategy Downtown – El-Bustan

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program have been designed to fit with the main concept evaluated according to their achievement of those objectives. Then it has been mixed in one robust program to utilize the points of strength of each one and maximize its benefits. The project in the Downtown consists of offices for creative industries, Co-living and Co-working spaces for start-ups and youth, affordable housing and A Class housing, recreational facilities, community park for the Downtown families, a mini market larger than the existing ones, new retails, new public open spaces and new outdoor kiosks for Egyptian arts and handicrafts. The project in El-Bustan includes large-scale supermarket, affordable housing for the attracted workers, public open and green spaces, recreational facilities, and secondary school. Detailed concepts and guidelines for these projects, have been addressed, in terms of urban layout and architecture, sociology, ecology, infrastructure including mobility and energy as well as in terms of economy, legal framework, and project management. The implementation of the project will take 4 years and it will be divided into four phases. Regarding the economic viability, the total development cost will be 272,700,000 L.E, sales price will be 416,300,000 L.E, while the net present value will be 200,400,000 L.E. The project will ensure high IRR that will be 25.78%. To conclude, the project’s feasibility is verified. "Go Gouna Project" ensures a vibrant downtown with new and diverse target groups as well as catalyzes the vitality of the economy by the diverse economic bases. Also, it reactivates El-Bustan as a lively neighborhood, improves the quality of life and promotes the society.


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Methodology The site and market analysis for this project was based on site visits to the areas of Downtown and El-Bustan, interviews and surveys were made with Orascom and local residents from both areas as well as tourists and regular visitors, questionnaires during the event of Vested Summit, desktop research and previous projects made by the students of TU Berlin Campus El Gouna in the addition to documents containing prices and masterplan regarding the project delivered by Orascom Development Housing Department.


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1.Introduction Since the inception of El Gouna in the 1990s and after the stages of development, it became a place that targets mainly two groups; wealthy Egyptians and Europeans who are looking for a place to relax on the Red Sea. Nevertheless, El Gouna's vision has always been to expand the range of target groups to be an attractive town for a diverse community. The Downtown area has been designated to host facilities and services to diversify the target groups. As this area is inhabited by families employed in the field of local tourism and beverage and food branches, for that, the redevelopment of this area draws in the relocation of families to El-Bustan area after Orascom decided to establish 300-400 affordable units in the El-Bustan area, with the aim of introducing new target groups to El Gouna especially from the young and a dynamic resident group. Furthermore, create an attractive environment for Start-Ups entrepreneurs from Egypt, MENA region and/ or Europe, Creative Industries, and Artists. In addition to make the Downtown a destination for new investments and projects, and at the same time developing and upgrading the level of El-Bustan to be an attractive alternative for families employed, and to have abundant services and facilities that help in improving the quality of life in the area. This report will include the feasibility study for the regeneration and redevelopment project of El Gouna as a town for start-ups and attractive residency for middle-income families in El-Bustan and Downtown area, as well as the feasibility calculation and translate the findings into a development concept that is economical, socially, technically, legally and environmentally feasible (TUB Campus El Gouna, 2018).


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2.Location (Macro, Meso, Micro scales) El Gouna located on the western coast of the Red Sea, and it has easy access to several governorates in Egypt, it is only 20 Km north of Hurghada, and 435 km from Cairo making it very far from the capital in a highly centralized country, it is also 250 km away from the upper Egypt cities like Qena and Asyut, although it still near to the rest of the world and between 4-5 hours to Europe because of Hurghada international

Figure 2 El Gouna region map shows the distance from Cairo. Source: (Google maps, 2018)

Figure 1 El-Gouna region map shows the distance from Hurghada Airport. Source: (Google maps, 2018)

airport which is only 30 minutes from El Gouna. For the local level, El Gouna’s location lies in The Golden Triangle Project which is planned by the GOPP to make the area the second largest development project in Egypt after the Suez Canal, aiming to establish a new industrial city (N Gage Consulting 2016). Start-Ups’ Location in Egypt El Gouna has the potential to be the center of attraction for startups and entrepreneurs in Egypt, and the MENA region because of its location near to the start-ups centers as shown in

Figure 3 El-Gouna region map shows the distance for the startups cities in the Red Sea region.

Figure 3 which shows the distance and Source: (egyptinnovate.com/innovation/map, 2018)


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the number of startups center for each Egyptian city, it could attract labor from the red sea region. El Gouna as total area is 37km², much of its area is vacant land or under development, and the developed area is only 14.7km². During the past 24 years, El Gouna developed into touristic resort town with a vision of growing into a Green City. The focus of this study was on El-Bustan and Downtown area in addition to taking into consideration Marina Abu Tig and the surrounding compounds such as Ancient Sand, Zarzara, El-

Figure 4 The study sites in El-Gouna. Source: (Google Earth, 2017)

Manfa, and Sacarub (Orascom Development, 2014).


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3.Site Analysis 3.1.Spatial Analysis 3.1.1.Downtown Area The downtown area is divided into three main zones. The first is the residential zone, in the western part, for TUB students and the employees of the nursing institute and Orascom departments, including the international school as an educational facility. While, the middle zone, which is called “TAMR HENNA” can be observed as a commercial zone, that contains retail, banks and bazaars as well as restaurants and cafes. This zone targets mainly the residents in El-Kafr area, the third zone in the east of Downtown, which can be considered a touristic zone with private households, hotels and some shops plus restaurants and bazaars. Furthermore, in the outer eastern border of downtown, the medical and educational zones are located without any noticeable linkage with the internal areas. Thus, as mentioned above, each zone has its specific use in isolation from the rest of regions inside downtown and its surroundings, which, sometimes, causes weak connection between these parts.

Figure 5 Main finding of the spatial analysis, Downtown area. Source: (Team B, 2018)

In Downtown, it can be observed the existence of some focal points, such as Tamr Henna, Bestway area and the intersections in front of Misr and CIB banks, most of these points are not obvious enough and sometimes indiscernible, as a result of the


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orientation of the buildings and the concentration of some activities in one area without any landmark or clear street signs informing the tourist, where he/she is, and where his/her next destination is. In addition, there are no clear and continuous pedestrian paths, in many cases, which makes some shops and facilities invisible to pedestrians. Also, several empty open spaces were noted, in the downtown parts, some of them, as a big vacant and sandy land, like the space beside G-Space, in front of the international school, which are used normally by the visitors as a public parking in the important events and in the high tourism seasons. As well as, the empty space in the north of the TAMR HENNA region, where Tuk-tuks, Taxis, and Shuttle bus stations are centralized. In addition, the huge square in the middle of the western residential zone, with a middle island of palms, is a dangerous intersection with no clear function, as it used currently as a shared space for pedestrians and cars.

Figure 6 The palms square in the western residential zone. Source:(Team B, 2018)

Figure 7 The big empty and sandy land in front of the international school. Source:(Team B, 2018)

On the other hand, there are few inefficiently used spaces such as the one in El-Kafr zone or the open space, behind TAMR HENNA square, which is known as the Art Village, this place where many significant Egyptian handicrafts workshops are located. Although this open space was designed as a significant place to attract tourists, it has weak access and inadequate visibility. Because of the unclear orientation and the architectural style of the variant buildings in Downtown, and because of the irregular alignment with the streets and the organic distribution of these buildings, as shown in Figure 5, many private and semi-private courtyards were created. Most of these inner courtyards are not utilized and lots of them have no clear social function in many cases.


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Figure 8 Semi-private courtyards in the Downtown area. Source: (Team B, 2018)

3.1.2.El-Bustan Area Main and secondary streets divided El-Bustan area into five main residential clusters, as separated islands without any form of linkage, whether functional or urban linkage, thus there are weak relations between these parts. Furthermore, each housing cluster has its own urban fabric, as well as, each one of them contains different types and sizes of open spaces between the housing units. And most of these open spaces are neglected without design or a clear usage, and most of them are

currently

used

as

shared

spaces

for

pedestrian

and

cars.

Figure 9 Main finding of the spatial analysis, El-Bustan area.Source: (Team B, 2018)


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Figure 10 Current situation of the open spaces in the residential clusters, El-Bustan area. Source: (Team Bs, 2018)

Regarding the exiting open public spaces, where families can take their children for playing and entertainment, there are a few of them. And these public spaces suffer from a lack of maintenance, poor capacity, and safety issues, especially the stray dogs, such as the abandoned space beside the kindergarten, on the main street, or the square in front of "Bayn Alqasrayn" cluster.

Figure 11 The small plaza in front of the "Bayn Al Qasrayn" cluster, Al-Bustan area. Source: (Team B, 2018)

Figure 12 The abandoned public open space beside the kindergarten, El-Bustan area. Source: (Team B, 2018)

From the site visit, it was observed that people in El-Bustan used to sit in the huge parking area, which is located beside the stadium and utilized as an open space during the night. Moreover, many families have a built seat in front of the gates of their houses, in order to use it at night for sitting and communicating. Furthermore, some teenagers complained about the lack of playgrounds and higher prices of the existing ones.


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Figure 13 People utilize parking area as a place for sitting at night, El-Bustan area. Source: (Team B, 2018)

Figure 14 People have their own seats in front of the house gate at night, El-Bustan area. Source: (Team B, 2018)

3.2.Traffic Structure 3.2.1.Transport means There are several means of transportation in El Gouna. Most of them are available and have a station in the Downtown area. The list of these transportation modes is: Transport means

Destination

Shared E-Bikes

A

person

can

From

the

stations

Available

different

hours

distributed

from any station

places, two of them in the

of

downtown area, one near

the

ten in

Gouna

El

the

in

Schedule

take an e-bike

stations

Tuk-tuk

service access

international

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school

and

and one in the Tamr Henna

return it at any

area, and third station in

other station.

Alkafr region.

Any place within

Directly from the streets,

From

morning

the boundaries of

from the Tuk-tuk station in

till

am

the El Gouna

Downtown, or by using

average

mobile

applications

2

on

like

Uber and Careem.

Taxi


19

Any place in El

Directly from their office in

Available

Gouna

the Downtown bus station

hours

and

Hurghada

24

or calling them by phone.

including Hurghada Airport

Budget Shuttle bus

Marina,

From the bus stations in

From 8 till 24,

Movenpick, Golf

downtown

except

and

along the lines

west

Golf

or

bus-stops

areas

the

West Golf line which does not run between 3 pm – 5 pm

Orascom Shuttle bus

Marina

and

Al

Bustan

From bus stops along the

Used to transfer

streets

workers groups

as from

their residential areas to their workplaces and vice versa Shuttle boats

El Gouna hotels

From Kafr El Gouna boat

From 9 am Till 5

and areas along

station

pm

Al Bustan and

From the main bus station

From 7 am till

Hurghada

in downtown or from the

midnight

Movenpick and Zeytuna Lines

Hurghada bus

bus stops along the line

Regional bus


20

Cairo,

From the two bus stations

More

Alexandria, and

in Downtown

daily trips with

Qena

than

7

different times

Table 1 Transport means in El Gouna, Source: (Project team survey, 2018).

El Gouna has its own airport but it is only for private flights. So, if visitors want to travel by air, they can reach Hurghada airport in 30 minutes. This airport has internal flights to Cairo and the other Egyptian cities as well as it has external flights to several European and Russian cities (HURGHADA International Airport, 2018). In addition to its main function in linking El Gouna and Hurghada, Hurghada buses connect Al Bustan to El Gouna and Hurghada, as the main public transport, in the area, for this purpose. The available seats on these buses can take up to 40 passengers and these Buses depart every 20 minutes and take around 1 hour from and to Downtown. But, in fact, sometimes it takes more than one hour because of the frequent stopping and in many cases, the buses are very crowded especially in the morning as it takes several groups such as students, workers, and employees as well as some tourists who move to and from Hurghada. There are also, as mentioned above, two types of shuttle buses, one of them serves Al Bustan area, but it is only for workers which have monthly subscriptions, and ordinary and non-staff people should pay 10 LE for one ticket a day to take these buses. That makes them expensive for this category of people in the area. In general, most of the transport modes are not affordable to several groups in this current economic situation, and sometimes they are expensive compared to the normal transport costs in Hurghada and Egypt as a whole. Also, regarding transportation in El Gouna, it was observed that Taxis and Tuk-tuks are controlled by a specified pricing system to prevent manipulation by drivers. 3.2.2.Status Quo Analysis Downtown Area The Downtown area is generally covered by a good transport network which consists mainly of the motorized streets that link the different inner zones and other areas in El Gouna. Furthermore, the area has a bike network, and there is also a good pedestrian Regeneration Strategy Downtown – El-Bustan

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network that is generally designed as sidewalks and as pedestrian public areas, e.g. “TAMR HENNA” and “El-Kafr” zones, where people can enjoy walking. The area is easily accessed by the main street on its outer borders and several secondary streets. With the expectation of Elkafr region as there are only two paths for cars accessibility, one of them from the outer highway and the second one as a bridge from “TAMR HENNA” area, while the rest of the region is accessible mainly by

Figure 15 Accessibility and Roads hierarchy map in the Downtown area. Source: (Team B, adapted from Google Earth, 2018)

pedestrians and bikes.


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Figure 16 Public and private transportation stop in Downtown. Source: (Team B, 2018)

Most of the streets in the area are well lit, and most of them are paved, with a few unpaved streets due to their function as shared areas. There is a usage of some techniques of the deliberate slowing of traffic by utilizing a speed limitat and streets with stony surfaces to ensure a safe environment for pedestrians. But there is a lack of streets signs with maps informing people about their current location and their destination in Downtown.

Figure 17 Stony surfaces as a technique of the deliberate slowing of traffic in El-Kafr area.

Source: (Team B, 2018)

On the other hand, the site contains some dangerous spots, as shown in Figure 15, represented in not well-planned intersections and roundabouts, which sometimes cause accidents as a result of visibility issues and excess speed. Also, the lack of crossings for pedestrians and

Figure 18 The street without crossing points, in front TUB Campus, the Downtown border.

cyclists was noticed, especially the streets with Source: (Team B, 2018) high traffic and allowed high speed. Thus,


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weakening the interconnections with the surrounding areas at times. Moreover, street capacity, sometimes, is inadequate for the current and increasing traffic volume; traffic jams occur in some cases, especially in places with only one path for cars such as the cars bridge in Alkafr or surrounding streets such as the one leading to Marina. This causes congestions in the tourism seasons and events that are at the level of El Gouna as a whole.

Figure 19 Traffic jam in the street, in front TUB Campus, Friday 11/5/2018, Afternoon. Source: (Team B, 2018)

Most of the residential blocks have their own parking places, some of these places are well designed with good shading but most of them need to be improved. And the available public parking areas at Down Town in front of “Best Way” supermarket, which can accommodate only between 30 to 40 cars, are not adequate for the number of cars to meet the high car traffic within this area especially in high tourism days and events. Furthermore, there is a lack of dedicated parking for the handicapped.

Figure 20 Well designed parking with good shade, Downtown. Source: (Team B, 2018)

Figure 21 Parking needs to be improved in the western residential zone, Downtown. Source: (Team B, 2018)

The bike network is disconnected and sporadic in the Downtown area as it unexpectedly ends in some places without any clear reason. Bicycle lanes are specified in some parts but in other places, they are sometimes like a shared space with stony surfaces which are unfriendly for bicycles. A limited number of public bicycle parking was observed, as there is only one place in front of TUB campus without any Regeneration Strategy Downtown – El-Bustan

24

type of shading, as same as most of the lanes that do not have any shading elements like trees, thus leading people to refrain from cycling especially in El Gouna's hot weather, which is contrary to El Gouna's policy of encouraging walking and cycling.

Figure 22 Unfriendly stony surfaces for cycling in ElKafr zone. Source: (Team B, 2018)

Figure 23 The only public bicycle parking near the Downtown area. Source: (Team B, 2018)

Figure 24 Interrupted bicycles network, Downtown. Source: (Team B, 2018)

Figure 25 Bikes lanes without shading in front of TUB campus. Source: (Team B, 2018)


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El-Bustan Area Al-Bustan area as a gate of El

Gouna

has

good

accessibility from the main roads that are connected to the regional road, which links

El

Gouna

with

Hurghada and Ras-Gharib. Streets network, which is consisted

of

main and

secondary streets, does not link the whole area but divides El-Bustan region into 5 main Islands without clear roads.

inner

residential

Figure 26 Roads hierarchy map in El-Bustan. Source: (International Winter School: Renovation of Downtown El Gouna, TUB Campus El Gouna, 2014)

Main streets in Al-Bustan are well paved but they have no shading elements or vegetation. And there is a lack of sidewalks in many streets, which causess walkers to use the places of cars regardless of whether or not they are designed as shared spaces. Furthermore, most of the secondary and inner streets are sandy and in a bad condition and some places are not even paved.

Figure 27 Sandy secondary streets in El-Bustan area. Source: (Team B, 2018)

Figure 28 Most of the Streets without sidewalks in ElBustan area. Source: (Team B, 2018)

An obvious absence of pedestrian facilities was observed in El-Bustan area. As there are no clear and paved pedestrian paths that link between the different parts of AlRegeneration Strategy Downtown – El-Bustan

26

Bustan area as well as the lack in the paths that connect residential clusters with main services and surrounding streets, where people reach daily transportation. So, children, women, and all residents are always forced to walk through random paths in the vacant lands in the middle of the desert for their daily journey from the residence to their usual destination and vice versa.

Figure 29 Absence of pedestrian facilities in the area. Source: (Team B, 2018)

Figure 30 The lack of clear and paved pedestrian paths in the area. Source: (Team B, 2018)

Furthermore, street lighting is not adequate in some places. All of that decreases the sense of security in the area and makes the walk uncomfortable and unsafe for residents, especially from stray dogs at night, as the residents complained about. In addition, there is a shortage in crossing points of streets especially the main ones, thus endangering pedestrians' lives. Also, most of the bus stops in the area are in poorly served concerning shading, seating, and lighting at night.

Figure 31 Main streets in El-Bustan have no shading elements. Source: (Team B, 2018)

Figure 32 Street lighting is not adequate in some places, El-Bustan area. Source: (Team B, 2018)


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Figure 33 Bus stop without Shading and seating, ElBustan area. Source: (Team B, 2018)

Figure 34 Bus stop in El-Bustan without adequate lighting at night. Source: (Team B, 2018)

3.3.Economic Structure (Facilities, Services, and Economic Clusters) 3.3.1.Economic Structure El Gouna and Hurghada depend mainly on tourism which is not at its best situation in this period because of the political instability and the Russian airplane crash of October 2015. Orascom Development Holding running the economic structure of El Gouna and the financial transaction. For El-Bustan we found small commercial activities and it is lack but for the Downtown, most of the economic activities are concentrated there. 3.3.2.Facilities G-Space works as a Co-Working space by providing private offices for startups and small companies or sharing space in addition to meeting rooms and services. TU Berlin Campus El Gouna for post graduated only which contain workshops, conference rooms, small studios and the Audiomax Theater. Nursing School and international school as educational facilities in Downtown. For El-Bustan there is only a kindergarten and the Hotel management school. Employment Structure: most of the employees in the Orascom area tertiary (Management staff in Orascom). In addition to the working in the hotels, maintenance, restaurants, services, etc.). Also, there are few workers in the Educational facilities and medicine (Orascom Development, 2018) . 3.3.3.Tax revenue The tax law is not clear and only the rents and services are paid to El Gouna administration.


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3.4.Socio-Demographic Structure The population in El Gouna is estimated to be around 17,000 inhabitants,

(Jasmin

Hussein,

2018) this number is including the permanent residents of workers, employees, employers, investors, and

temporary

residents

like

tourists. Whereas, in El Gouna people

are

divided

into

46%

foreigners, from countries such as UK,

Italy,

Belgium,

German,

Others, they come to El Gouna for tourism due to its beautiful climate,

Figure 35 percentage of Nationalities in El Gouna. Source: (Jasmin Hussein, 2018)

or because there are opportunities for investment, they live in either Downtown, Marina or perhaps in private villas, and mostly they are from older age groups, over 40 years old. While 54% of its residents are Egyptians some of them are workers and employees who are living in El-Bustan area, migrated from Upper Egypt and mainly from Qena governorate, and they are young people aged between 20-30 years, and some of them emigrated with their families and were already married and others were not. Furthermore, a significant proportion of them don't have a high level of education, except some of the hotel school certificate holders, and many residents working in the tourism sector (Hotels, restaurant, souvenir, etc.)(Team Survey, 2018). Most of the workers and the employees, who are living in El-Bustan area, can be classified as low-income people, and the purchasing power of them is estimated to be, based on the survey, around 1000 L.E per month. In addition, the other Egyptian people who have high and middle income such as investors, students, and tourists as well as some of the employers and employees also live in classy places such as Downtown and Marina, where the people have high purchasing power estimated to be, based on the survey, more than 2500 L.E per month (Team Survey, 2018). From the above, it can be observed that there is an apparent difference between ElBustan and Downtown residents, in terms of quality of life, available services and


29

income, as well as education level and nationality plus culture of people, all of that, may lead to a sense of social segregation between those two regions. 3.5.Ecological Structure 3.5.1.Topology and Geology El Gouna’s ground surface and the sea located on the east side are on the same level. Moving to the west, the surfaces slightly changes reaching the chain of mountains lying in a parallel position to the coastal edge that lies in the east side of El Gouna. Focusing on the two main study areas, the Downtown area that lies in the center of El Gouna and looks to the artificial lagoons and the Red Sea and El Bustan district that lies in the south side and

has

a

more

significant

compared

to

Downtown

with

Figure 36 El Gouna Master Plan.

area Source:

(www.egyptrealestatehub.co.uk,

more 2018)

expansion in the arid lands. 3.5.2.Climate The wind statistics are based on observations from the weather station at El Gouna Kiteboarding Club. The average high temperature in summer is near to 32 Celsius in August and the low is nearly 19 Celsius in January. Prevailing winds come from the northwest with an average speed of 13 knots (Windfinder, 2018).

Figure 37 Average wind speed and temperature in El Gouna.


30

3.5.3.Landscape and Open Spaces Downtown Area The downtown contains a lot of vegetation distributed around the area, some of them are well maintained and others are not. This vegetation reflects a nice view of the downtown area and provides shading for some sidewalks, bike lanes, and passageways. These plants and trees are irrigated through the water source that comes from the water treatment and desalinization plant located in El Gouna. The distribution of lampposts around the area should be reconsidered because some zones, particularly in Eastern Downtown area, lack lightning features creating constant darkness in the night.

Figure 38 Central Downtown. Source: (Team B, 2018)

Figure 39: Road connecting Downtown with Marina. Source: (Team B, 2018)

El-Bustan Area El-Bustan lacks lighting features and vegetation in most of its area which does not reflect a civilized and nice view compared to the Downtown area. There are no trees along the airport runway to act as a buffer zone and block the noise coming from the airport. It contains different types of housing units, most of these units are built separate from each other which does not provide shade. Other units surrounded by a fence of trees provides shade for these units and protecting them from the dusty wind. Besides, the open space areas are vast compared to the height of the surrounding buildings which does not provide shade to help to decrease the temperature in these spaces. Regeneration Strategy Downtown – El-Bustan

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Some bus stations in the area lack the shading functions which make the passengers vulnerable to the direct sunlight.

Figure 43 Unshaded housing units in El-Bustan. Source: (Team B, 2018)

Figure 40 Shaded housing units in El-Bustan. Source: (Team B, 2018)

Figure 42 Shaded bus station in El-Bustan. Source: (Team B, 2018)

Figure 41 Unshaded bus station in El-Bustan. Source: (Team B, 2018)

3.5.4.Solid waste collecting and disposal Downtown Area The trash is collected twice a day from different types of trash cans distributed around the area. There are trash cans in front of every unit, dog waste trash cans, as well as bins which are categorized by type of waste. The solid waste collected from these trash cans are sent to a waste separation plant located in El Gouna for recycling purposes.

Figure 44 Categorized bins. Source: (Team B, 2018)


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Figure 45 Dog waste bin. Source: (Team B, 2018)

El-Bustan Area The garbage if first collected from trash bins and garbage trollies in front of the housing units and educational facilities by garbage collectors and gathered in an empty room located in the area, waiting for the garbage truck to carry it to the waste treatment plant in El Gouna.

Figure 46 Garbage trolley in El-Bustan. Source: (Team B, 2018)

3.5.5.Water distribution network and wastewater treating Desalination units located between Downtown and El-Bustan area supply the three tanks of El Gouna with treated water, serving the town with water delivered in a pipe system to the housing units, services, and other facilities There is one case in El Bustan area where water tanks are used to serve the Hotel schools’ dorms. There are two Wastewater treatment plants (WWTP) located in Downtown and El Bustan area, treating the wastewater coming from the districts of El Gouna (Tzoupanos, 2015).


33

Location of WWTP and Desalination units in El Gouna Source: (Tzoupanos, 2015)

3.6.Investment Climate “Improving the investment climate is key to accelerating the growth of income and employment in Egypt and building a better climate for firms to invest, generate jobs and growth is one of the main pillars of a strategy for development” (Stern, 2003). Based on site analysis and field survey, El Gouna is a well-secured town far from any political instability and it is highly unlikely that a person might experience any problems regarding security and safety issues. It has an adequate quantity of leisure activities which makes it an attractive destination to combine work with pleasure. However, El Gouna’s real estate investment targets only wealthy people by offering luxurious villas and high-end apartments in various locations. Moreover, there has been a marked rise in real estate prices with a percentage of 33% (1594 € /m2 - 2017, 2355 €/m2 - 2018) for the average selling prices in El Gouna between the year of 2017 and 2018 (Orascom Development, 2018). 3.7.Administrative and legal framework 3.7.1.Administrative Framework According to Egyptian local government law, El Gouna is part of the city of Hurghada. In reality, it is a privately managed town. The land is still owned by the government but the whole process of managing land use and building activities are done by “Orascom Development Holding”. The main office for this company is in Cairo, however, it has


34

constructed several specified companies (departments) to run and operate El Gouna. (Haitham Ali, 2018) -

Orascom for Hotels management: which is responsible for the process of

running and operating Hotels of El Gouna in addition to all Orascom’s Hotels around the world. -

Orascom for Housing: This company is the responsible body for managing the

housing units such as apartment buildings, villas, the university dorms and all other types. In addition, this company also runs the economic activities in El Gouna by employing other departments especially for the economic activities. The finance department in this company is the one responsible for reviewing and auditing the contracts between the concerned parties. -

Orascom for Operating: Here the processes of human resources management

are being done. -

Orascom for Customer Services: This company is also responsible for

transportation management in El Gouna. -

Orascom for Marketing: all of the organization processes for the events that are

held in any facility or building in El Gouna should be discussed with and supervised by the company. However, it is not responsible for the marketing of El Gouna itself. This issue is in the responsibility of the Cairo Office. -

Orascom for Security: It coordinates with the Egyptian Police, but it is a private

security company. -

Orascom for Infrastructure: Here the outside works are being done.

-

Orascom for Urban Development: Here the planning laws and buildings

regulations are taken into consideration to get the plans for developing El Gouna spatially. Additionally, there are other activities which do not have separate departments and directorates to be run. They are to be discussed with the General Manager Office directly such as the educational and health facilities. Therefore, any new education


35

facility an investor is willing to operate inside El Gouna must provide the request to the GM office (Haitham Ali, 2018). The coordination between all these companies/ departments is done by nonregular managing meetings where all of them sit together with the General Management of El Gouna (Haitham Ali, 2018). The issues of El Gouna’s urban development are conducted by Orascom Hotels and Development in Cairo supported by a local office in El Gouna. 3.8.Public Law 3.8.1.Planning Law In the Strategic Plan for Hurghada 2020 (not yet approved) El Gouna is designated as a touristic area. Up to now there are no areas in El Gouna with detailed plans according to section 14-17 of the Building Law 119 (2008) and sections 17-44 of the Executive Regulations of the Building Law (2009). As El Gouna wanted to be a residential town and it is located in a touristic place in the Red Sea Governorate the Egyptian government made an obligatory condition for Orascom in El Gouna: Orascom must build one hotel room for each residential unit there. Besides, no more than three stories for the building are allowed to be built regarding the sea near to it (Orascom Development, 2018). 3.8.2.Building Regulations Building activities in El Gouna have to follow the Egyptian Building Regulations in sections 91-108 of the Executive Regulations of the Building Law (2009). 3.8.3.Side Law Currently there are no side laws (e.g. monument protection law, nature protection law) relevant for the project areas in Downtown and El Bustan. 3.9.Civil Law There are essential conditions to be taken into consideration when signing a contract with Orascom. All of the following articles are from those contracts: •

Article 9 in Housing lease contract: The Lessee may not, under any

circumstances whatsoever, transfer and/or assign to a third party all or some of his


36

rights arising from this agreement, nor sub-contract third parties to carry out or present all or part of the agreement, •

Article 10 in Housing lease contract says that ”the lessee agrees to leave the

unit and to move to a similar one whenever The Owner requests due to operation circumstances.“ •

Article 4.1 in the commercial lease agreement: The Lessee shall provide the

Owner, at the end of each month, with a profit and loss statement reflecting the revenues generated from the performance of the Licensed Services. •

Article 6.4 in the commercial lease agreement: In the event, the Lessee is

approached by a third party concerning the display of promotional or marketing material in the Leased Area, the Lessee shall immediately inform the Owner. If the Owner approves the foregoing in writing, the Lessee may proceed, subject to Owner’s prior written approval of form and substance of the material, and shall pay the Owner a commission amounting to 15% of all fees paid to Lessee. •

Article 6.5 in the commercial lease agreement: The Owner hereby reserves the

right to enter into bulk sponsorship deals whereby advertisement in El Gouna will be given on an exclusive basis to El Gouna sponsors (“Bulk Sponsorship”). In this event, the Lessee hereby agrees to comply with the terms of the Bulk Sponsorship against a share of the sponsorship revenue to be determined by the Owner •

Article 9.1 in the commercial lease agreement: In the event of Owner’s approval

(transfer or assign any of its rights or obligations or sub-contract third parties to carry out or provide all or part of the Licensed Service all or some of its rights), the Lessee shall pay to the Owner a transfer fee amounting to i) 15% of any amounts paid to the Lessee against the assignment or transfer of this Agreement or ii) four months Rental Value, whichever is higher. •

Article 10.2.5 in the commercial lease agreement: in the event, the Lessee does

not vacate and deliver the Leased Area back to the Owner at the end of the term of this Agreement, the Lessee shall pay the Owner a penalty fee of ten thousand Egyptian Pound for each day of delay.


37

Competition between the local commercial activities is also regulated by Orascom by civil law: To avoid competition in fields with similar activities Orascom decided not to give permission for similar activities to operate in the same area (Haitham Ali, 2018).


38

4.Market Analysis 4.1.Housing Market El Gouna is characterized by the design of its buildings that draws on influences such as architect Hassan Fathy with domes, ventilation systems, and rich earth tones, and the most of the town is constructed so that it follows same architectural style (Soraya Morayef, 2012). The study area in El Gouna is divided into two regions; Downtown and El-Bustan 4.1.1.Housing in Downtown

Figure 47 Downtown map with zones. Source: (Team B, 2018)

It is an area located in the center of El Gouna, characterized by a high-quality infrastructure with services and shops covering the entire of population need, the area has several open spaces and entertainment places (Team Survey, 2018). Downtown consists of 32 buildings belonging to Orascom Development, 900 apartments are distributed in it, (Jasmin Hussein, 2018), the height of buildings ranges from two to three floors, the buildings are either used for housing or commercial, and most of the Downtown residents are tourists, students and some of the staff.


39

Figure 48 Housing Blocks in the Downtown. Source: (Team B, 2018)

The residential units in El Gouna are divided into categories by the type of finishing (A, B, and C), according to the classification of Orascom, also the number of units per type is distributed to; (A) Class there are 314 units, (B) Class 537 units, and (C) Class 49 units (Jasmin Hussein, 2018). In addition, the prices of rent vary depending on quality of units and other factors such as type of contract (long, or short-term), required period (times of high season, holidays, events, etc.) and there are special prices for staff of Orascom, as the table below shows the differences in the rental value of some units, depending on the factors;

Table 2 All amounts in L.E., Source: (Ismael Rkabi, 2018).

4.1.2.Housing El-Bustan Area located at the entrance to El Gouna from the south-west side, it is a poor area in terms of services and entertainment places, there are 39 buildings that distributed into four areas; Bain Al Kasrain, South El-Bustan, Al Deiar, and Al Monkhafad.


40

Most of the buildings in El-Bustan have a bad condition and also classified into categories by type of finishing (A, B, and C), and the rental prices are low compared in Downtown to meet needs each class of the residents, as we will mention below in the table, some of the rental prices for units in El-Bustan, depending on the type of its finishing (Ismael Rkab, 2018).

Figure 49 Map of El-Bustan Area with zones. Source: (Team B, 2018)

Bain Al Kasrain The most serviced area in El-Bustan, where there are restaurants, shops, etc., moreover there is a public square where residents meet for recreation. This area contains two residential buildings, those buildings consist of one floor and a ground floor, in addition, it has a better condition compared the whole area, therefore it is classified from finishing type (A), and its rental prices are the highest in El-Bustan (Team Survey, 2018).


41

Figure 50 Housing in Bain Al Kasrain area. Source: (Team B, 2018)

South El-Bustan This area is at a lower level than Bain Al Kasrain in terms of services, it has 20 residential buildings, 19 of them with finishing type (C), and the remaining building type (B), and the buildings also consist of one floor, and the ground floor with shops (Ismael Rkab, 2018).

Figure 51 Housing in South El-Bustan area. Source: (Team B, 2018)

Al Deiar, and Al Monkhafad These are located on the southwest corner of El-Bustan, next to each other and are separated by an unpaved street and a dirt yard, and this area is composed of 17 residential units with a classification finishing type (B) (Ismael Rkab, 2018). In Al Deiar, the residential units with one floor, additionally there are buildings with mud-walled, and Al Monkhafad consists of buildings with one floor and a trees fence called (Old Al Monkhafad) and two floors that called (New Al Monkhafad), and all the houses in this area have private gardens (Team Survey, 2018). Regeneration Strategy Downtown – El-Bustan

42

Figure 53 Housing in Al Deiar area. Source: (Team B, 2018)

Figure 52 Housing in Al Monkhafad area. Source: (Team B, 2018)

In the end, the table below shows the difference rental value in some of the areas in El-Bustan;

Table 3 All amounts in L.E., Source: (Ismael Rkabi, 2018).

4.2.Commercial Market The economic conditions with its importance are always noticeable which occupies the first ranking factor that shapes our alternatives during the selection of each function for the developed area. In El Gouna especially through the current economic conditions, there is a need for an insightful study of the market to be able to define the market mechanism in the city that most of its activities are based on tourism. In addition to, the need for diversifying the economic activities should be based on market analysis to choose and compare.


43

The commercial activities in El Gouna can be categorized according to the type of commercial use and the location such as Marina Abu Tig, Downtown, and El-Bustan. This categorization can be defined for two main parts: Big commercial activities like (restaurant, banks, home supplies, Tuk-tuk maintenance and Beer Factory. And small commercial activities such as (mobile, supermarket, clothes, grocery stores, and tourism bazaars). 4.2.1.Commercial activities in Downtown Downtown is the main assembly point for various commercial activities in the town such as restaurants and retails, souvenir shops. These shops are distributed in several locations in Downtown and specifically in Tamr Henna Zone and El-Kafr Zone as shown in Figure 56. Big commercial activities in Downtown are distributed in different places in Tamr Henna zone such as banks (Banque du Cairo, CIB Bank, Crédit Agricole), home stuff (B.Tech) and restaurants. The renting price for these places higher than the smaller shops with an average price for square meter per month 250 LE. (14 big shop tenant in Downtown, 2018) and the total number for this activities is 20 (Survey by project team, 2018).

Figure 55 Small commercial activities In Downtown. Source: (Team Bs, 2018)


Figure 54 Big commercial activities In Downtown. Source: (Team Bs, 2018)

44

The small commercial activities in Downtown such as the mini market (Obaid, Best Way) and retail (Barber, Souvenir shops, Clothes shops, Etc.…) are concentrated in Tamr Henna zone. In addition to some retail stores, jewelry and a small supermarket (AL-Saaedi) in El-Kafr zone with rental price average for these shops lower than the big shops with a price for square meter per month 170 LE (9 small shop tenant in Downtown, 2018) and the total number of these shops is 57 (Survey by project team, 2018).

Figure 56 Downtown Zones and commercial activates locations. Source: (Team B, 2018)

4.2.2.Commercial activities in EL-Bustan In fact, El-Bustan which located on the entrance of El Gouna define as a neighborhood for workers and stuff housing without tourists, therefore, commercial activities are limited only for the daily needs of the residents in the retails. These shops are distributed in several locations in EL-Bustan districts as shown in Figure 57.


45

Regarding the big commercial activities in El-Bustan, there is only an oil station and one restaurant located in Bain AL Kasrain district, as well as Tuk-tuk Maintenance and a Beer

Figure 57 El-Bustan Zones and commercial activates locations. Source: (Team B, 2018)

factory in the workshops district. The rental price average price for these shops is only 70 LE/m2 (Big shop tenant in El-Bustan, 2018). The small commercial activities in EL-Bustan provides only the basic services for residents such as pharmacy, retails (Barber, tailor, Clothes shops, laundry, Etc.) in addition to three cafes and a small library. All activities are concentrated between the residential clusters. With a rental price average for these shops lower than the big shops with a price per square meter per month of 45 LE (Small shop tenant in El-Bustan, 2018). Regeneration Strategy Downtown – El-Bustan

Figure 58 Small commercial activities In EL-Bustan. Source: (Team B, 2018)

46

4.2.3.Hotels Orascom Development owns, manage and operates 17 hotels in El Gouna. In addition to some international hotels such as Movenpick, Sheraton, and Steigenberger which are not operated by Orascom, the ownership of the buildings belongs to Orascom in partnership with the main company of those hotels. Panorama Hotel is only one hotel in El Gouna which is not owned or operated by Orascom (Gada Amin, 2018). Most of the Hotels are located on Marina Abu Tig and Downtown and Golf district near to Downtown as shown in Figure 59. All hotels provide good rooms in terms of service and furniture, as well as swimming pools with clean beaches on the Red Sea. Some of these hotels offer other services such as cafes, restaurants, and shops for buying and selling gifts. The total number of hotel rooms in El Gouna is 2,655, with Occupancy for the rooms up to 70%, and the price average for a double room per night between 1000-2000LE (Q18 Orascom Development, 2018).

Figure 59 Hotels Location in El Gouna. Source: (Team B adpted from Google Earth, 2018)


47

4.3.Tourism Market El Gouna, like the rest of the Egyptian tourist resorts, in turn, has been strongly affected by the decline of foreign tourists, although El Gouna is the least affected because most foreigners in El Gouna, in fact, are residents and not tourists. As most of them have chalets, real estate, yachts, restaurants, and shops, and turned El Gouna for them from a place of space to the homeland they live throughout the year (Gada Amin, 2018). In the morning, the destination of tourists concentrated on the beaches to enjoy the sun, at the night people in El Gouna usually go to AL-Kafr and the Down Town, especially for those who want to go shopping in the retail shops and bazaars, have a drink in the bars, or go to Marina Abu Tig. (Mohammed Hesham, 2016) In an attempt to increase the incoming tourism to Egypt, Orascom Hotels and Development has a cooperation with FTI which is one of the largest travel and tourism companies in Germany and the RTK which cooperating with a television channel for tourist advertising. (Gada Amin, 2018) German tourism to Egypt is among the top five tourist markets exporting tourism to Egypt and accounting almost 70% of inbound tourism to the country, as well as they represent the backbone of European tourism received by Egypt (Ayman Saleh, 2016). El Gouna tourism market is divided to four main parts of the visitors stating from the German-speaking market (Germany, Austria, and Switzerland) with an approximate percentage 35%, in addition to the local Egyptian market with 35%, the Russian market does not constitute a significant difference in the tourism movement in El Gouna with only 5%. Finally 25% of the visitors come from different countries around the world (Gada Amin, 2018). Large numbers of tourists in El Gouna are elderly people and retired. In fact, El Gouna is not a tourist destination for young people, although there are many sports activities such as kite surfing, horseback riding, cars racing, swimming and sunbathing. This is because advertising campaigns on TV channels are only interesting for older people (Gada Amin, 2018). The tourist season in El Gouna starts in the month of May every year until the end of September, and the peak time to be in holiday periods such as Muslim holidays such as Eid al-Fitr, Adha, New Year, Easter, Sham ElNessim and the opening of the season


48

in October due to discounts offered by tourist companies at the beginning of the season (Book first and save) (Gada Amin, 2018). In addition, the social events taking place in El Gouna are an attraction for tourists whether local or international such as the Sand Box and El Gouna Film Festival, which significantly increased the interior market and for real estate market, Cairo Orchestra, opera nights and sports activities. Where it gives a picture of El Gouna as an integrated city and not just for tourism. (Haitham Ali, 2018) 4.4.Start-Ups and Creative Industries Market 4.4.1.Start-Up A start-up is a young company consists of one more member in its early phase of development offering a service that has not been offered in the market. These companies are funded by different parties like investors, NGO’s, private sectors, Government etc. (Fontinelle, 2012). Egypt comes in the second position with a percentage of 12% for the number of Mena Start-Ups it hosts (The National, 2018). It has more than 250 Start-Up from different fields such as Health, Energy, Agriculture, IT & Technology, Transportation, Water, and Environment etc. (Egypt Innovate, 2018). It’s worth mentioning that Egypt ranks in #101 for the best countries for business with a GDP of $332 B (Forbes, 2017) and there are 13 Egyptian Start-Ups who made it to Forbes’ Top 100 in the Middle East, which is a global leading business magazine company that focuses on investment and entrepreneurship (Cairoscene, 2017). 4.4.2.Creative Industries There are many definitions related to the creative industry, but they have often been similar in term of the content. Perhaps, the most comprehensive one, the definition of UNICEF, it describes the culture and the creative industries as “sectors of organized activity whose principal purpose is the production or reproduction, promotion, distribution and/or commercialization of goods, services, and activities of a cultural, artistic or heritage-related nature” (UNESCO, 2017). UNCTAD classifies creative industries into four extensive categories which are heritage, arts, media and functional creations. These categories, as shown in Figure 60, are in turn consisted of nine subgroups (UNCTAD, 2008). According to the basic economic properties of creative industries in (Caves, 2000) and according to his principle of “nobody knows”, the demand is Uncertain because “the


49

consumers' reaction to a product is neither known beforehand nor easily understood afterward “ (Caves, 2000).

Figure 60 UNCTAD classification of creative industries. Source: (UNCTAD, 2008)

In Egypt, there are many different sectors of Creative Industries such as handicrafts, jewelry -and metal works, plus advertising, photography, audio and video products, publishing, books, and magazines, as well as cultural heritage such as antiquities and tourism (Al-Attar, 2017). In addition, the majority of cultural and creative industries, in Egypt, are completely integrated, especially in the design-based Industries and in cultural transmedia, which are mainly concentrated in Alexandria and Cairo (UNIDO, 2015). Egyptian exports of creative goods and products increased from $619 million in 2008 to $1.1 billion in 2010, then to $4.4 billion in 2014. The most important of these creative exports are acoustics and visuals such as films, as well as sculpture, carpets, jewelry design, decoration and game design. As for creative services, there are advertising, market research, and public opinion polls (Al-Attar, 2017). 4.4.3.Start-Up and Creative Industry Supporters in Egypt Egypt has more than 70 Co-working spaces, 40+ private sectors, 15+ academic bodies, 20+ NGO’s, 10+ Governmental agencies, and 30+ Funding agencies and


50

Investors (Egypt Innovate, 2018). Below are some examples of different types of startup supporters and ecosystem players in Egypt (Radwan, 2018): 1. Academic: TU Berlin Campus El Gouna, Nile University, Asyut University, Mansoura University 2. Private Sector: AXA Egypt, Orascom, Orange, Etisalat, Mansour El Swedy, Sawiris, CIB, AAIB, Egy Bank, 3. Co-Working Spaces: G-Space, Al-Maqarr, District, Urban Station, Bee Cell, Seedstars, Ed Zone, Flux, Kareem's Awesome World, Ra7baya, CoworkInn Dahab, The following chart shows that the prices for a private office per month in G-space, El Gouna is the most expensive price among other workspaces in Egypt but cheaper than the ones in Europe like the United Kingdom and Berlin.

Co-Working offices prices/ month $1.200 $1.000 $800 $600 $400 $200 $0

G-Space

G-Space

Al-Maqarr

Al-Maqarr

District

District

CoworkInn Dahab (Desk)

Bee Cell

CoworkInn Dahab (Desk)

Makanak

Bee Cell

Uk

Makanak

Berlin

Uk

Berlin

Figure 61 Co-Working offices prices/ month. Source: (Team B, 2018)

4. AID Organizations: Inno Egypt, GIZ, UNICEF, Jisr, 5. Events: Vested Summit, SPARK Ventures, Nawah, Creative Industry Summit, Rise Up, Startup Weekend, Orange Cup, Manifesto, Tech Invert, IBM, Google, Microsoft, 6. Government: Ministry of Investment International Cooperation, Ministry of Industry & Trade, Ministry of Finance, Ministry of Communications & Information Technology, Information Technology Industry Development Agency, AAST Regeneration Strategy Downtown – El-Bustan

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7. Legal: Law of Investment, Parliament, Amir Marghany, Trust Law 8. NGO’s: Nahdet El-Mahrousa, Awtad, Misr El-Kheir, El Nada Foundation, 9. Investors: Below is a list of some of the Egyptian venture capital and seed funds, and angels who are investing in tech-based startups in Egypt (Cousin, 2016).

PURE-TECH INVESTORS IN EGYPT

$250.000

CAIRO ANGELS

A15

4000000 $2.000.000

$1.000.000

$150.000

Pure-Tech Investors

SAWARI VENTURES TAMKEEN CAPITAL

IDEAVELOPERS

Figure 62 Pure-Tech Investors in Egypt. Source: (Team B, 2018)

Another Angel investor called Nile Angels consists of 10 investors at its early stage is willing to invest in Startups based in Upper Egypt this year with support from the German development agency GIZ (STARTUP SCENE Team, 2018). Below is a chart that shows the annual average salary of a Start-Up developer in Cairo (about $10000) compared to other cities all over the world (Startup Angels).


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Annual Developer Salary $120.000 $100.000 $80.000 $60.000 $40.000 $20.000 $0

Cairo Cairo

São Paulo São Paulo

Paris Paris

Berlin

Berlin London

London

Washington, D.C.

Washington, D.C.

Figure 63 Annual Developer Salary. Source: (Team B, 2018)

4.4.4.Supporting Facilities in El Gouna El Gouna has many facilities that provide the Start-Ups and Investors with the necessary services needed for meetings, events, and work. All these facilities are just walking distance from each other which saves a lot of time away from the traffic in other cities. These facilities are: G-space is a Co-working space located in the Downtown area of El Gouna which contain shared and dedicated desks, as well as private offices (14m2 and 15m2) for Start-Ups and business owners. The place also has meeting rooms and the main hall for various events that take place in El Gouna. G-Space has starts-ups like Tarek Noor (Media), El Shalaany (El Gouna Tv) and the majority are Web Developers such as (In Touch) a company from Ireland. No. Phase 1

No. Phase 2

Phase 3

3

Private Offices

8

Private Offices

Running track

8

Large workstations

1

Large Meeting Room Fun Zone

18

Regular workstations

Dog-friendly area

2

Lazy Boy room

Music

recording

room 2

Bar and beverage area


53

Table 4 G-Space implementation phases, Source: (An interview with Hanane Abdelrahman; G-space manager, April 2018).

Type

Price

Private office (14 m2)

6000 LE/ month

Private office (15 m2)

7000 LE/ month

Dedicated desk

2500 LE/ month

Hot desk

1500 LE/ month

Shared desk

100 LE/ day

Table 5 G-Space renting prices, Source: (An interview with Hanane Abdelrahman; G-space manager, April 2018).

TU Berlin Campus El Gouna Consists of: Venue

Equipment

Capacity/ guests

AudioMax

audio/visual presentation and

390

instant translation facility Main Court

Open Area

400

5 meeting rooms

Audio/visual presentation

25

6 meeting rooms

Not equipped

25

26 small meeting rooms

Not equipped

10

PC Pool

PCs and visual presentation

Studio Rooms for recording

Audio equipment

The

pilot

and

Lap-scale

plants for wastewater Chemical

analytical

Lab

laboratories Workshops

(metal

/wood/

welding) Table 6 TUB Campus El Gouna supporting facilities, Source: (www.campus-elgouna.tu-berlin.de, 2018).

Hotels like Movenpick, Sheraton, and Steinberger that provides equipped halls for various events such as weddings, conferences etc. These facilities host Start-Up events like “Vested Summit” all year long which introduce start-ups to investors from all over the world to help them create their companies or expand it. El Gouna’s weather and environment create an atmosphere that plays a major role in the prosses of running a business. Kwame Hall (a former El Gouna Regeneration Strategy Downtown – El-Bustan

54

resident) thinks that El Gouna has a huge potential to be a center for attraction for Start-Ups by describing El Gouna’s great and flexible lifestyle which helps create good companies (Hall, 2017). Ramy Khorshed (Spark Ventures program director) says “if you’re doing something purely tech-based that you regularly communicate with your clients over the internet, then being in El Gouna is no different from Cairo except that you are a better, happier more effective and efficient person” (Khorshed, 2017). El Gouna must follow the footsteps of Station F which is the largest startup incubator in the world by building the region’s largest hub. It must invest in the necessary infrastructure and provide ultra-fast internet connections to attract Startups to create a unique startup Ecosystem (Dessouki, 2017). 4.4.5.Startups and Creative Industries Questionnaire The questionnaire was made to know more about the branches of Start-Ups and creative industry participating in the Vested Summit Event, how do they work, what is the relationship between them and the investor, how much is their living costs, the reason behind establishing their companies in Egypt and what they found interesting in El Gouna. The questionnaire was distributed among 26 participants, 20 males and 6 females, 90% of them were Egyptians and have different experiences in Start-Ups. Some of them had more than 4 years in Start-Up and some were still at the early stage. The questionnaire was only targeting Start-Ups but other interviews were also made with different investors, mentors who want to share their experience with the beginners and the interested persons, and groups of hackers from different fields, that during the event to know more about their point of view and experience in this field. Questionnaire Main findings Regarding the identification of the nature of the start-ups and creative industries, more than a third of these

Start-

Ups

and

creative industries were specializing in

business

Figure 64 The field of the participants in the Start-Up and/or Creative industries. Source: (Start-up and Creative Industry Questionnaire, 2018)


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innovation and the others in fields such as marketing, Fin Tech, and game development, as well as, Health and TV and media. 5 of them work individually, while the majority works as teams, as more than half of these teams are members of (2-5) and two of these teams with members of (25 - 30). About their willing to pay,40% of them willing to spend between (250 - 500) US $ per month on housing,

Figure 65 The numbers of the members of their teams. Source: (Start-up and Creative Industry Questionnaire, 2018)

while the largest percentage of them willing to spend less than 250 US $. Furthermore, the largest percentage of them willing to spend less than 250 US $ on business space, in the second place, there is who willing to spend (1000-1500) US $. And almost half of them willing to spend less than 250 US $ on the cost of living.

Figure 66 how much they are willing to spend per month on housing in US $, inclusive utilities. Source: (Start-up and Creative Industry Questionnaire, 2018)

Figure 67 How much they are willing to spend per month on office/business space (for the whole team). and Creative Industry Source: (Start-up Questionnaire, 2018)

As for the nature of their relationship with investors, more than half of the investors are financier and supervisor, and most of their regular meetings with the startups are held monthly and face to face.

Figure 68 The nature of the periodic meetings with their investor Source: (Start-up and Creative Industry Questionnaire, 2018)


56

Moving to the required location of their work, almost all of them work in Egypt for many reasons; as they claimed, Egypt is a huge market with many opportunities and the cheapest labor cost than other countries. And when they have been asked about the required factors in their potential work locations, proximity to customers and clients, skilled labor, and own residence came in the first place, then proximity to the potential partners and entertainment places. Concerning the factors that have a generally positive impact on their work, they claimed the important factors are related to mobility, internet connection speed and networking with partners. About the factors that have a generally negative impact on their work, they spoke about mobility, customs, and tax, as well as, legal issues.

Figure 69 The current workplace of their business. Source: (Start-up and Creative Industry Questionnaire, 2018)


57

Figure 70 The favorite workplace of their business. Source: (Start-up and Creative Industry Questionnaire, 2018)

On the one hand, they liked

the

available

facilities

El

provides

which

found

Gouna

supportive

they for

their type of work like, Gspace and the available PC pool, workshops and studio rooms provided

Figure 71 The available facilities in TUB that are relevant to their business. Source: (Start-up and Creative Industry Questionnaire, 2018)

by TUBCG. On the other hand, when asked about the services needed to be found or improved in El Gouna, most of them complained about the slow internet connection which is very important for them, the lack of labor and legal work concerning customs etc. The majority worked in a single commercial space and preferred to work in a culture economic center that provides a shared community space with shared pools and fitness studios.

Figure 72 The amenities that they expect to be included in their housing. Source: (Start-up and Creative Industry Questionnaire, 2018)

Figure 73 The required space for their businesses/ their activities. Source: (Start-up and Creative Industry Questionnaire, 2018)


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5.Stakeholders Analysis Stakeholder analysis aims to identify the main and possible stakeholders in the site area, their demands, and needs, the expected roles they play in the project and their power. The following table lists the stakeholders affected by the project in El Gouna in both areas of Downtown and El-Bustan and lists their demands based on field and internet surveys. Stakehol

Orascom

ders

Central

Kafr

El-Bustan

Hurgha

Visitors

Eastern

Downtown

Residents

da

Mid-term

Downtown

Residents

Residen

Tourists

Residents

&

Short-term Tourists

ts

In/ Ex

Internal

Internal

Internal

Internal

Demand

Diverse

Building and

Bigger market,

Building

community

street

gym,

maintenance

school

dance

External

External

External

Improve

Affordable

More

street

transport

long-term

activities,

maintenance,

ation

housing

long-paved

open spaces,

network

and

passageway

services Interest

High

High

Intermediate

High

Low

High

Intermediate

Power

High

Low

Intermediate

Low

Low

Intermediate

Intermediate

Table 7 Stakeholders Analysis Table, Source: (Project team, 2018)

The table indicates that there is a group of internal and external stakeholders with different interests and power in this project. The main internal stakeholder in this project is Orascom who wants to create a diverse community and attract middle-class families to El Gouna. The residents of Central East Downtown have low power over the project, they demanded maintenance for the buildings and the streets in the area. The residents of Kafr Downtown have intermediate power and interests in the project, they demanded a bigger supermarket in the area as well as a gym and dance school for their kids. The residents of El-Bustan have low power and interest on the project, they demanded maintenance for buildings and streets in addition to open spaces and services which the area lack. Some of the surveyed people were residents of Hurghada who come to El Gouna on daily basis for work, they demanded a better and more reliable means of transportation between Hurghada and El Gouna especially during the peak hours (6 am – 9 am) and (6 pm – 9 am). There was a huge demand for affordable long-term accommodation from visitors of other Egyptian Governorates and Mid-term visitors. As for short-term tourists, they asked for more diversity in activities that take place in the Downtown area as well as a better WI-FI connection and a longpaved passage-way.


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6.Conclusion (Main Finding from Market and Site Analysis) 6.1.Site Analysis (Main Findings) In the Downtown, there are few focal points and there is an opportunity to restructure them, to increase their number and to make them more obvious. Furthermore, There are lots of semi-private courtyards that are not utilized and with no clear function. As well as, there is a weak connection between the Downtown parts and its surroundings. Moreover, there are many empty open spaces to be utilized. Regarding El-Bustan area, also, there is a weak relation between its parts and there are many unused open spaces in the residential clusters and the existing public open spaces are neglected and sometimes abandoned. El Gouna has good accessibility. And in Downtown, there is an opportunity to improve bike and pedestrian networks, treat the dangerous intersections, and diversify travel destinations to more Egyptian cities. There is an opportunity to improve the conditions and the lighting of the streets and bus stops in El-Bustan, to create proper facilities and networks for pedestrians and bicycles, and to increase the number of trips between Hurghada and El Gouna plus diversify public transport means and make them affordable not only for workers but also for their families and other visitors. There is an opportunity to diversify the community in the Downtown and attract young people to the area. Also, there is an opportunity to have a promoted and equal community and to decrease the sense of social segregation in El-Bustan. The ecological aspects in El-Bustan like vegetation, shading, open spaces and waste collection is neglected compared to the ecological aspects in Downtown. 6.2.Market Analysis (Main Findings) Regarding Housing market, in Downtown, there is an opportunity to establish short and mid-term housing for new target groups investors, in addition, affordable housing for young families and students in the area. While in El-Bustan, there is an opportunity to improve the living conditions by increasing the services in the area and established affordable housing to attract El Gouna employees and workers who live in the


60

Downtown as well as in Hurghada and Fayroz, additionally the new target groups in El Gouna. Regarding Commercial market, in the comparison between the shops in Downtown and Marina Abu Tig with the commercial shops in El-Bustan, it was found that the shop's areas and conditions meet the needs for the tenants, but it is not affordable as rent prices. In contrast, the shop's areas and conditions in EL-Bustan do not meet the needs but the rent prices are at hand and affordable for the tenants in the area. Regarding the Tourism market, TV Advertising for El Gouna from the tourism companies is attracting older, retired people. And the German Tourist market is the biggest tourist market with a percentage of 35%. As well as, the social events in El Gouna are showing an attraction for tourists. In addition, the tourist's movement concentrated on the beaches, shopping in retail shops, bazaars. Regarding Start-ups and Creative Industries market, El Gouna has facilities like Gspace and TU Berlin Campus that serves the Start-ups and entrepreneurs and meet their needs. And there is an opportunity to settle some of the creative industries in El Gouna, especially industries that do not require large spaces and large numbers of workers. Creative industries that are consistent with the nature of the town, as a tourist city with a good climate and attractive landscapes or in terms of its additions to El Gouna and the related events such as El Gouna Film Festival.


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7.Development Concept 7.1.Approach for Development The development approach in El Gouna is based on two important and basic facts. The first one is that El Gouna is an urban tourism destination that must maintain its attractiveness and improve the living conditions of its workers. The second one, it is like any city or town whose downtown needs to be revitalized permanently to accommodate the variables and to stay vibrant. So, our approach in Downtown depends on some principles. One of them is understanding the community by considering the interests and the needs of different involved stakeholders in the community such as tourists, residents, owners, and retailers etc. The other principle is creating an attractive place by activating empty spaces in the short term by, for example, installing outdoor kiosks to rent them out to entrepreneurs working in handicrafts or selling souvenirs and artwork, as well as improving public spaces and introducing high quality ones to encourage people to spend more time in downtown. Furthermore, facilitating redevelopment in the long term by renovating the old buildings and creating mixed-use ones and making underutilized public lands available for private sector development (Smart Growth America, 2015). Making the town more walkable and improving the transportation infrastructure is also one of the principles, which can be achieved by improving pedestrian and bikes networks as well as improving the signposting, to help pedestrians find their way within the area, plus providing multiple transportation options and making them more affordable. The approach also depends on diversifying the economy by expanding the types of activities in downtown which encourages people to come to the town for many reasons, coming up with supporting retails, and creating a more diverse retail and business environment and concentrating it in a walkable place. In addition, attracting companies in specific sectors such as some types of creative industries, creating shared office spaces, and motivating people to stay downtown by having sport and leisure facilities. Also, Plan for equity by building a variety of housing types in Downtown for different categories of people, including housing for low-income families and units at a diversity of price points (Smart Growth America, 2015). While, the approaches of development in El-Bustan is based on providing the needed services and infrastructure and inserting densifying strategies to accommodate the expected


62

increase in the population, with taking into account the enhancement of the environmental and social issues in the area to make it a lively workers settlement. 7.2.Vision Facts El Gouna is the unique place in Egypt that can combine between work and pleasure trough targeting tourism, students, workers and entrepreneurs from the local market and all over the world. GO Gouna is our vision for the development

proposal

for

El

Gouna. Because GO Gouna it can be the place that people can go there for Work, Invest, Live, Enjoy, Study, Shopping. 7.2.1.Vision statement:

Figure 74 Go Gouna Vision Logo.

Source:( Team B, 2018)

“Having the center that embracing the diversity of the community by enhancing the quality of life through a sustainable beach village by meeting the demand for the foreigner's and the local startups market to achieve the growth in El Gouna and the Red Sea region” 7.2.2.What is expected? The whole idea of what is expected from the project is a proposal of community facilities which caters to economic growth (improve the economy, increase job opportunities and tourism) and livability or sustainability (improve community quality of life and promote sustainable growth). 7.3.The objective of Development Proposal The objectives of the project were determined, according to the main findings of market and site analysis, from different perspectives; the urban, social and economic objectives. These short and long-term goals were defined for both the downtown and El-Bustan area. So, the purposes of the development proposal are: Urban objective


63

Having a vibrant downtown by realizing the best exploitation of its buildings and open spaces. Reactivating El-Bustan as a lively neighborhood by enhancing the quality of life and Providing the needed services.

Social objective Attracting new and diverse groups by introducing new markets to the town. Promoting the society through the fill in missing social infrastructure to decrease the sense of social segregation.

Economic objective Catalyzing the vitality of the economy by depending not only on tourism but also on diverse and sustainable economic bases. 7.4.Alternatives of Proposed Program 7.4.1.Alternative 1 Socio-Economic Sustainable Profile This alternative has been worked out keeping in mind El Gouna as a tourist destination and the need for diversity for the commercial, recreational centers, open spaces for the public. The objective behind this proposal is to sustain a higher quality of life by taking the benefits from the unique character of El Gouna to make all the districts equally and available for all the residents, workers, and visitors. The main land uses and functions are Affordable housing, various business activities,

Social

facilities

and

Services. Forcers and drivers which led for this proposal since El Gouna is a touristic town and there is a variety of nationalities and there is a need for

Figure 75 Proposal Development 1 Downtown Map. Source:( Team B, 2018)


64

affordable housing and public space and activates in the town, need to diversify the economic activities and the socio-cultural activities. For that this proposal targeting all of the residents and private investors, students and tourism workers and employees, real-estate developers, Orascom

Development,

Children

and young people. As shown in Figure 75 for the Downtown the evacuated buildings will be under renovation in addition to increasing the number of social activities and adding new recreational facilities in El-Kafr

to

strengthening

the

connection with Downtown Parts. And for EL-Bustan as shown In Figure 76 the social activities will be

Figure 76 Proposal Development 1 EL-Bustan Map. Source:( Team B, 2018)

between the residential clusters. In addition to increasing the number of affordable housing units and services and build new recreational facilities near to the church. 7.4.2.Alternative 2 MENA’s first Co-living & Co-working space Co-working space is a place designed to hosts teams and individuals, employed by companies or self-employed, together in a shared space which creates a sense of community by sharing ideas, experiences and knowledge between each other through their work (American Library Association, 2018). Similarly, Co-living space is a place designed to host individuals, with different backgrounds and ambitions, together in shared living spaces like kitchens, bathrooms, bedrooms, dining rooms and theaters that creates a sense of community and social life between these individuals (American Library Association, 2018). This type of space has many advantages: since the people are working and living in the same place then they will save money and time spent on transportation, there is no need to rent an apartment and rent a desk or office in a


65

working space, they don’t need to comply with the operating hours of a working space because a co-working and co-living space is designed to serve 24 hours a day, and the sense of community such spaces may create due to the daily contact with its residents. From the site and market analysis of El Gouna it was found that it has considerably features, starting from its safe strategic location and mild climate to the leisure activities and availability of necessary services and facilities, that qualifies it to host a successful co-living and co-working space which can be the first of its kind in the MENA region. From here came the idea of creating this kind of space that incubates individuals that are mostly depended on the internet and relaxing weather to run their businesses like entrepreneurs, start-ups, programmers, designers, travel bloggers and Ph.D. students. From the evacuation phasing diagram provided by Orascom Development, we

chose

building

H18

to

be

developed into a co-living and coworking space. This building has an area of 1940m2 that consists of 3 floors and 45 units. These units will be divided into bedrooms, co-working spaces, laundry room, skype room and a theatre. The architecture style and building orientation in El Gouna

Figure 77 Building No.H18 in the Downtown. Source:( Team B, 2018)

gave this building a unique design with an indoor private space that can be used as an inner court which serves the objective of a co-living and co-working space and full fill its needs. The large area of the building gave it the capacity to host up to 70 people in both single and double rooms. 7.4.3.Alternative 3 El Gouna as a National Hub for Creative Industries In this alternative, it was planned to catalyze the vitality of the community and the economy in El Gouna by branding it as a national creative hub through attracting new economic investments in fields such as audio and visual production companies, advertising, marketing, and media sector. Moreover, attracting skilled workers to


66

activate the community, as well as offering professional training for creative entrepreneurs and talented youth, and providing regularity economic support for the existed general public venues by interacting between the proposed functions and these venues such as the existing retail, shops, educational and housing facilities plus El Gouna festivals and events. The

program

of

this

alternative consisted of coliving and co-working spaces for talented people and young skilled

workers,

who

are

coming from different national Egyptian destinations, interim affordable housing for the attracted

young

families,

pending the completion of the construction

of

affordable

housing units in El-Bustan.

Figure 78 Map shows the proposed uses and functions in the Downtown, in alternative 3. Source:( Team B, 2018)

As this alternative aimed to improve the quality of life in El-Bustan by building a large number of affordable housing and needed services for those skilled labors and their families as well as it aimed to improve the mobility sector in El Gouna in order to have a better connection between El-Bustan and Downtown. Also, the program included offices for the target companies and creative industries plus training centers for people how to want to work in these fields. Moreover, It was planned to utilize the existing facilities in the Downtown such as TUB Campus, Nursing Institute, and the G-Space by using their halls, high-quality small workshops, recording studios and laboratories. Furthermore, having a mixed-use building with commercial and A-Class housing for the investors' accommodation and needed recreational and commercial facilities plus high-quality open spaces for those new groups. So, this Alternative was targeting investors, international and local creative entrepreneurs, local and national skilled workers and students as well as Rental owners, TV and Film companies and Business innovation groups.


67

From the site and market analysis, it was found that El Gouna has several factors support this alternative. Concerning investment, there is a varied group of supporters and investors( international/national level) plus the secure and safe environment for investment, and the cheapest cost than Europe. Regarding the location, it has good connectivity, transportation, and existing supporting facilities as it was mentioned above. Also, El Gouna, as an intercultural friendly place, has a diversity of nationalities and it has a significant natural environment and landscape. In addition, it is close to the needed skilled labors in northern and southern Egyptian cities. Moreover, different related events and festivals supporting this program, such an El Gouna Film Festival. 7.4.4.Alternative 4 El Gouna as a Smart Village The smart village is a complex specialized in advanced technology, aims to increase the foreign investments, by attracting the information technology companies, therefore encouraging local companies additionally stimulating and assisting the startups, build an economic information sector and expanding the local market. (Waleed Nassar, 2008) After analyzing the market and site in El Gouna we found an excellent opportunity to introduce the smart village concept in the area, and make El Gouna an attractive brand for International and local experts in the field of ICT and government institutions associated with those industries, due to many advantages are available,

starting

from

the

location, where El Gouna located near

Hurghada

International

Airport, as well as the beautiful climate which

and

beautiful

nature

helping to combine the

work with pleasure, also it has a sophisticated infrastructure and there are many facilities needed

Figure 79 The elements that are needed for the success of smart projects. Source: (Waleed Nassar, 2008)

for the success of smart projects, and places to perform recreational activities such as; sports (tennis, football, squash etc. ), cultural (Seminars and conferences) and


68

personal activities (restaurants and cafe), and there is also the campus of TU-Berlin, which can be used for scientific research in cooperation with the existing companies so that companies benefit from the scientific research issued, and the campus is benefited by creating opportunities to implement its research directly nearby, and the following figure shows the elements that help to the success of Smart Village projects. (Team Survey, 2018) As an example of this proposal, the Smart Village which located on the Cairo-Alexandria desert road

was

established

with

percentage of construction 10% of the total area of the village to be a comprehensive center for the tech work in the region, and already

there

are

many

international companies have invested in Smart Village such as Microsoft, Alcatel, Vodafone, and other international brands

Figure80 Smart Village in Cairo. Source:( www.mena.com.eg, 2018)

(Waleed Nassar, 2008). 7.4.5.Comparative analysis of alternatives “benefit analysis” The alternatives of the proposed program were compared with each other, as shown in Figure 81, and they were assessed according to their achievement of the development objectives. Each one of them has its strong points. So, the four alternatives were mixed to utilize their aspects of strengths as well as to maximize the benefits of each alternative, to come up with a robust development proposal based on outputs of the market and site analysis.


69

Figure 81 Comparison between the four alternatives. Source:( Team B, 2018)

7.5.Program Formulation Methodology The methodology for formulating the development program for GO Gouna was based on: 1. Market & Site Analysis We found that there is a need for affordable housing for startups in Downtown for longterm accommodation, and for workers and employees in El-Bustan. In addition to the need for social activities and social life near to the supportive facilities, and the need to diversify the economic activities. 2. Survey and Questionnaires During the vested summit conference by meeting with the startups and investors and they agree that they are looking for attractive factors, improve facilities and high-speed internet. 3. Assessment of the alternatives A combination of strong points of each alternative has been taken into consideration and we found:


70

From the social-economic sustainable profile, we need to sustain a high quality of life and reduce the social gap between Downtown & EL-Bustan. From The first Co-Living and Working space in the MENA region, we have to offer more Co-Living & Working space to incubate the entrepreneurs from all over the world. From El Gouna as a National Hub for Creative Industries, we are looking for attracting new economic investments and skilled workers. From El Gouna as a Smart Village, we need to make El Gouna an attractive brand for international and local experts. 4. Comparative analysis of the alternatives To be able to identify the strengths and weaknesses of each alternative, the comparison between them has been made to find similarities and differences. 5. Managing conflicts and Maximizing the benefit Assessing the alternatives with comparative stand gives the opportunity of managing the conflicts between those alternatives and seeing how to reduce or eliminate them to maximize the benefit. 6. Finishing the Development Plan after mixing the potentials of each proposal.


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8.Detailed Elaboration 8.1.Urban Layout and Architecture 8.1.1.Land Use, Zoning, Allocation, and Synergies Downtown Area In the Downtown, it has been tried to achieve the best utilization of its buildings that are planned to evacuate by Orascom, as shown in Figure 83, as well as to utilize the existing open spaces in the best way. So, the proposed concept is a combination of different functions and usages and in between these usages several types of high quality public open spaces. The land uses are designed to realize the development objectives.

Figure 83 Map shows the existing land uses in the Downtown. Source:(Team B, 2018)

The

proposed

contains

three

program types

of

Housing; Affordable housing for young families and startups, Co-Living space for students, and youth who works in the field of creative industries and start-ups, and A class housing, for the mid

Figure 82 The proposed new functions in the Downtown. Source:(Team B, 2018)


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and long-term accommodation for tourist and investors. In addition, it includes different types of offices for creative industries and start-ups, such as Co-Working spaces, small studios, and small workshops, as well as offices for small branches of companies. Moreover, it was proposed a mini market larger than the existing ones. And a community park, for the residents, and high-quality open spaces with some new retail, were also proposed.

Figure 84 Map shows the proposed land uses in the Downtown. Source:(Team B, 2018)

a) The Creative Industries Offices These offices include small studios for recording and photography, offices for architects and other designers and programmers as well as small workshops for the technology and innovation workers. Also, it includes types of creative industries that are consistent with the nature of the town, as a tourist city with a good climate and attractive landscapes or in terms of its additions to El Gouna and the related events such as El

Figure 85 Creative industries' offices in the Downtown.

Gouna Film Festival and the other different Source:(Team B, 2018) events, such as small branches of audio and


73

visual production companies plus marketing, advertising and public relations offices, as well as graphic design and publishing offices. It is located in buildings H25 and H26, as shown in Figure 84, to benefit from their architectural style with the semi-private courtyards, and it lies on the main street in the outer border of the Downtown because this type of offices need to be close to the traffic in sometimes as well as it is synergizing with supporting nearby facilities such as TUB Campus and Nursing institute with its workshops, laboratories, halls, and recording studios. b) The Co-living and Co-working Spaces Building H18 was chosen to be developed into a co-living space because of its architectural style and its private courtyard that can serve the objective of a co-living. This building consists of 3 floors and 45 units, as it was explained in detail in the alternative 2. These units in turns will be divided into bedrooms, co-working spaces, laundry room, skype room and a small theatre. The large area of

Figure 87 Proposed Co-living space in the Downtown with its current courtyard.

the building gives it the capacity to Source:(Team B, 2018) host up to 70 people in both single and double rooms. The same for buildings H15, H16, and H17 which

have

a

semi-private

courtyard between them. This inner space will be utilized as a landscape linking these three buildings that are developed into a co-working

space.

These

coFigure 86 Proposed Co-working spaces in the Downtown with their current semi-private courtyard. Source:(Team B, 2018)


74

working spaces create a sense of community and social life between their occupants. The location of this co-living and co-working spaces facilitates the serging with the GSpace and the nearby educational facilities on the northern and western borders, such as TUB Campus, nursing institute, and the international school, which will strengthen will strengthen the spatial connection with the surrounding. c) The Affordable Housing These affordable housing units are for the young people who are coming from startups and creative industries. They are placed in Buildings H20 and H23. Figure 84 The location of these units was chosen in the residential zone, to be close to the proposed Co-Working spaces and the proposed new small plaza. In addition, these buildings are overlooking a community park that was specified especially for the residents of these units as well as students and the attracted young families. d) The A-Class Housing The A class housing is for the tourists, investors, and the managers who want to have mid or long-term accommodation, as they asked for in the survey. And Orascom, by renting out these type of Housing units, will gain a high return. All the buildings lie in the active area where the retail and shops are. As well as their location was chosen close to the lagoon and one of them is overlooking it, that makes them more attractive. e) The Mini Market "Ebeid" market is one of the buildings that are planned to evacuate, as shown in Figure 83, from this point came the idea of relocating "Ebeid" market to another building with larger space than "Ebeid", the building H11, this mini market provides the daily need and goods for the inhabitants of the Downtown. The mini market lies in the middle of the Downtown, making the area more attractive for newcomers. This location on the proposed walkable street, between the residential and commercial zone (Figure 84), would make this place more active not only during the day but also in the night and would strengthen the connection between the Downtown parts, where tourists, residents, students and the visitors would come from all the destinations to this place. Regeneration Strategy Downtown – El-Bustan

75

f) The Retail These retail spaces include more new restaurants, coffee shops, and street cafes distributed in the ground floors of the mixed-use residential buildings; Building H4, H7, H8, H10, and H12. They are located, as shown in Figure 84, in the active area and the proposed new public open spaces.

Figure 88 Jobo's Sports Bar & Restaurant in the Downtown, an example of proposed new retail. Source: (jobos.elgounarestaurants.com, 2018)

g) The Recreational Facilities This type of facilities puts the Downtown in competition with Marina. There are buildings H13 and H10 as a sporting and leisure facilities providing Gym, Ballet classes, dancing school, and Spa. As well as Building H6 which comes as a leisure facility providing cafe with billiard and ps halls. All of that in line with the requirements of surveyed inhabitants and visitors . They are located, in the active area, in the middle of the Downtown, where, after the long day of work, workers in start-ups and creative industries and students, as well as tourists and residents, can go and enjoy their time in these facilities due to its proximity to all

Figure 89 The accessibility to the gym from its surrounding. Source:(Team B, 2018)

buildings especially the Co-Living and CoWorking spaces plus the offices. h) The Community Park The vast sandy area with some trees, which already exists behind the housing blocks in the residential zone, is utilized as an entertainment space, with no fees for all ages, Regeneration Strategy Downtown – El-Bustan

76

with an area of around 15000 m2. This space will work as a safe and vibrant spot, providing students, talented workers, inhabitants and the kids with the needed shared space to participate in activities that can bring them together and ensure a safe playground for the children, far from dangerous shared spaces, as well as it will enhance an interactive community in the Downtown. For that, it was proposed to reallocate it as a public garden by installing durable seating and different landscape elements, improving lighting in the place, providing shading elements, and maintaining the indigenous trees planted to provide natural shading plus providing an outdoor gym.

Figure 90 Examples of proposed outdoor GYM in the community park. Source:(www.google.com , 2018)

Figure 91 Example of proposed playground for kids. Source:(www.google.com , 2018)

Figure 92 Example of proposed playground for kids. Source:(www.google.com , 2018)

The location was chosen to be close to residential buildings, the Co-Living and CoWorking spaces, where students or other people who cannot find a free place for sitting and working, can bring his/her laptop and enjoy, study or work. As well as, the park was placed in a way that doesn't threaten the attractiveness of other paid open spaces that are specified for tourists. i) The New Public Open Spaces Regeneration Strategy Downtown – El-Bustan

77

It was suggested to utilize the huge asphaltic open spaces; the palm square and the broad street between "TAMR HENNA" and the residential zones , and convert them to public spaces with stone surfaces to make them more walkable and to calm the traffic in some places as well as to make it available for inserting street cafes and restaurants where people, from different cultures, can sit and interact with each other . That will ensure a vibrant and active area, in the night, with affordable entertainment places.

Figure 93 Example for street cafes in a square, Tamr Henna Cafe in the Downtown. Source: (www.7-ayam.com , 2018)

Figure 94 Example for a commercial street as a public open space with street cafes, Downtown in Beirut, Lebanon. Source: (www.lebanonfiles.com, 2016)

Figure 95 Example for a commercial street as a public open space with street cafes, Downtown in Beirut, Lebanon. Source: (www.alarabpost.com, 2018)

j) The Relocated Arts and Handcrafts Kiosks It was proposed to relocate the "Art Village" which suffers from the weak visibility issue, as it was mentioned in the previous analysis. The new suggested location is along the wide main street, in front of the international school on the outer border of downtown, where, the daily route of the several types of tourist buses lie.


78

It was proposed to install outdoor kiosks of the significant Egyptian arts and handicrafts, such as the one in Figure 96. This place, as shown in Figure 84, was chosen for two main reasons, the first one is making these kiosks more visible, especially for tourists, in the nearby hotel, and the Downtown visitors, while the second reason is providing shading for this

Figure 96 Example of the proposed outdoor kiosks.

street to encourage people to walk and Source: (www.asimn.org, 2017) cycling. As well as it was suggested to convert the empty space of the "Art Village" to an administrative square with some of Orascom offices. El-Bustan Area Regarding our vision and objectives, we found that we need to add five flagship projects to achieve the development in El-Bustan and its surrounding which is: Affordable Housing, Hyper Market, Educational Facilities, Recreational Facilities, Public and Green Spaces


79

In fact, these projects reflect the market demand that El-Bustan has for the social, educational, commercial and environmental aspects. As shown in Figure 97 for the existing land-use we can observe that the buildings are scattered without an

Figure 97 Existing land use in El-Bustan. Source:(Team B, 2018)

interconnection between El-Bustan districts and the services.


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EL-Bustan can be divided into five deferent zones: residential closure, El Gouna private airport, workshop area, the services, and the athletic facilities Figure 98. Then following the zoning, we proposed our new land uses to be relative to the existing one.

Figure 98 El-Bustan Zoning. Source:(Team B, 2018)

a) The Hyper Market Big Hypermarket to provide the residence in El-Bustan with the missing shops (grocery, food, and beverage, butcher, dry food, ETC…), with area occupies 5000 m², this hypermarket will be the destination for residence in El Gouna to buy weekly goods in addition to attract the people from Fayroz and Hurghada to come for shopping as well as attract tourists how want to buy souvenirs and handicrafts products , all of that will cause high crowding traffic, which in turn will draw attention to El-Bustan neighborhood and will lead to improve the infrastructure and economic conditions by offer job opportunity in different majority like woman whom working in handy crafts and


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small industries. It can also give an advantage for the farms in El Gouna and provide fresh organic vegetables to make competitive with Hurghada market.

Figure 99 Proposed Land use In El-Bustan. Source:(Team B, 2018)

The proposed location for this Hypermarket near to El-Bustan gate on the highway between El Gouna and Hurghada to keep the privacy for El-Bustan residence and to be more visible for easy access and to take advantage of the location to support the marketing reasons. Figure 99 b) The Affordable Housing It is one of the needs that we identified through the analysis for the market in the El Gouna, as that we expect from the upcoming development to increase the population, so it is necessary to increase the affordable housing units that support the residence for long-term accommodation. The proposed location for it supposed to be supportive Regeneration Strategy Downtown – El-Bustan

82

to the existing housing and related with it, in addition to its proximity to open spaces and the public park for a better view and the recreational and educational facilities and services for easy access. Figure 99 c) The Recreational Facilities An entertainment and leisure facility (Provide Gym, Ballet, Dancing school, Spa, Provide Billiard & PS Hall) that will work as a lung for the area, besides providing the inhabitants with the needed space to participate in activities that can bring them together and strengthen their sense of belonging. The proposed location for these facilities is close to the athletic facilities and religious and residential clusters for more interdependence and easier access. Figure 99 d) The Secondary School Basically, of the lack of educational services in El-Bustan and the students forced to go to Hurghada every day, in addition to the need to improve the educational level for the residence we suggested a secondary school. It is location proposed to be in the educational zone near to the hotel management school, sports facilities with easy access from the students in the neighborhood. Figure 99 a) The Public and Open Spaces A zone with environmental and social orientation, starting with the public park near to the residential cluster with a playground for kids and social events, then the social activities between the buildings in El-Bustan districts to improve the social life and finally the green buffer to cut off the view and pollution from El Gouna Airport. Figure 99


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8.1.2.Program Function All flowing projects were proposed to achieve the objectives and the vision as shown in the Table 8 below to help the inhabitants in El Gouna to enhance their quality of life and skills and achieve economic stability and diversity in Downtown and improve the social life and reduce the sense of segregation between El Gouna Neighborhoods.

Table 8 Summary of the projects area, functions, objectives and target group, Source: (Project team, 2018).

8.2.Sociology 8.2.1.Downtown Area The development proposal in the Downtown has come in harmony with the vision for El Gouna targeting facilitate not only wealthy Egyptians and Europeans owners plus Regeneration Strategy Downtown – El-Bustan

84

European tourists but also other various groups to keep the town attractive for a diverse community. Co-living

and

Co-working

spaces as well as creative industries, would diversify the community and attract new groups especially young and talented people. In addition, the free community park, behind the housing blocks, would bring the

new

groups

of

young

families and talented youth plus the students together, and that would

give

a

sense

Figure 100 Sociological impacts of the development proposal on the Downtown area. Source:(Team B, 2018)

of

community to the area, moreover, it would ensure safe playgrounds for their kids, far from the traffic. While, the renovated wide main street, between residential and "TAMR HENNA" zones, with its street cafes and proposed new usages especially the relocated mini market plus the new recreational facilities, would attract several groups such as tourists, residents, young and elderly people, then it would let them sit with each other thus having an interactive community and promoting a vibrant and lively Downtown. 8.2.2.El-Bustan Area Regeneration process, as a whole, in El-Bustan area, by improving the quality of life and providing the area with the needed services would increase the productivity of the workers who are living with their families in the neighborhood when they are feeling that their employers considering the improvement of their living conditions, and that would decrease the sense of social segregation and negligence. And this process would benefit Orascom itself by promoting and their marketing slogan “Life as it should be”, as the improved living conditions in a workers' neighborhood like El-Bustan would add positive points, in marketing, to El Gouna and thus Orascom (TUB Strudents, 2017).


85

Proposed school in El-Bustan would contribute to the alleviation of the financial and physical burden on ElBustan students, who must go daily to their schools in Hurghada, with more than 45 minutes. This school with the park and the improved open spaces, in the residential clusters, as well as the recreational facilities, would fill in missing social infrastructure in the

Figure 101 Sociological impacts of the development proposal on El-Bustan area. Source:(Team B, 2018)

area. Furthermore, recreational facilities, community park, and the beach, which would be only for El-Bustan residents, would ensure the safe environment for social and recreational activities, especially for women and children, from the point of view of the local residents according to their cultural perspective and these activities would also strengthen the social relations and interaction in the area. Moreover, the Affordable housing would be appropriate for low-income families and young people. Regarding the large-scale supermarket, on El Gouna border close to El-Bustan area, it would increase the attractiveness of El Gouna, as a whole, for the future residents who would be able to find their shopping requirements without the need to go to Hurghada malls and markets plus it would provide job opportunities for the women in the area, who are coming from upper Egypt, with their experience in several significant handcrafts as they can market their products to the tourists in this large-scale supermarket.


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8.3.Ecology The development concept provides several techniques and solutions regarding the ecological problems and environmental requirements observed during the site survey, in both areas of Downtown and ElBustan, which helps in the adaptation of the climate by reducing the energy consumption and improving the urban environment. techniques

The

concept

regarding

includes energy

conservation and thermal comforts like a solar chimney, skylight systems on roofs and wind towers in buildings as well as the usage of high albedo materials like

Figure 102 Skylight Shades. Source: (www.galagala.org, 2018)

grass and white paint. These techniques will be implemented during the renovation process of the buildings that will be developed into the creative industry offices, coworking/ co-living spaces, and residential buildings in both areas. In Downtown, water fountains will be placed in the central eastern part between the co-working spaces and the residential buildings which give aesthetic shape and helps in the reduction of temperature in the area. The Art Village behind Tamer Henna restaurant, which will be relocated along the road between G-Space and Three Corners Hotel, will provide shading to the pedestrians similar to the Sunday Bazaar in Karachi shown in Figure 103 below. In addition to the community park that will be implemented in the south part of the developed area. In El-Bustan, trees will be planted along the airport runoff to act as a buffer zone to isolate the area of El-Bustan from air and noise pollution. A community park will be implemented in the northern part of the area in addition to the providing of shading for pedestrians along the roads and renovation of the unshaded bus stops located in the area.


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Figure 104 Unshaded bus stations in El-Bustan. Source:(Team B, 2018)

Figure 103 Sunday Bazaar in Karachi - Latent Thoughts. Source:(Team B, 2018)

The following maps show the location of the areas to be shaded in addition to the open green spaces to be implemented in both areas of Downtown and El-Bustan.

Figure 106 Shading and park locations in Downtown. Source:(Team B, 2018)

Figure 105 Shading and buffer zone locations in ElBustan. Source:(Team B, 2018)

8.4.Benchmarks for selected building projects The following benchmarks were selected based on several aspects such as size, equipment, neighborhood, functions and characteristics that comply with our development concept for the selected buildings.


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8.4.1.Sun and Co. (Co-working & Co-living space) – H18 The space is located in a coastal town in Spain with a similar atmosphere compared to El Gouna. The space has an area of 500 m2, divided into private and shared rooms, 20 workspaces, and over 200 m2 of communal areas ( communal kitchen, Skype and meeting rooms). It has an internet fiber connection of 300 Mbps. It has a capacity of 20 people and hosts entrepreneurs from all over the world (Sun and Co., 2018). The operators of this space organize hiking trips and water sport activities to provide an entertainment environment for its guest and encourage them to socialize. This benchmark was chosen based on the resemblance between both environments and the goals our development is trying to achieve from the point of attracting young people as well as the diversification of community and economic activities. This benchmark is proposed to take place in building No. H18 in Downtown with an area of 1940 m2 and it is likely to have a capacity of 70 people.

Figure 108 Sun & Co. co-working space. Source:( sunand-co.com, 2018)

Figure 107 Sun & Co. a shared room. Source:( sun-andco.com, 2018)

8.4.2.Seedspace Co-working space in Maadi, Cairo – H15, H16 & H17 Seedspace has 6 branches all over the world like Switzerland, Côte d'Ivoire, Nigeria, South Africa, Colombia, and Egypt. The space located in Egypt has an area of around 600 m2, divided into shared desks, dedicated desks, offices as well as a swimming pool and a private garden. The spaces provide its customers with 24/7 access to its services like kitchen facilities, pool, events, high-speed internet, chill areas and access to Seedstars partners (Seedstars Cairo, 2018). The benchmark was chosen based on its equipment, functions and size which corresponds to each of the proposed buildings of H15, H16 & H17 located in Downtown.


89

Figure 109 Seedspace (www.coworker.com, 2018)

in

Cairo.

Source:

Figure 110 Shared desks in Seedspace Cairo. Source: (www.coworker.com, 2018)

8.4.3.Derby Lounge in 6th of October City, Giza – H6 The lounge has an area of 165 m2 and consists of a café with PlayStation rooms and billiards tables (Derby Lounge). This benchmark was chosen based on its size and functions that comply with the goals of our development in creating a vibrant leisure facility in the area. The benchmark is proposed to take place in building No. H6 which is currently known to be Ebaid Market in Downton.

Figure 112 Derby Lounge Café, Cairo. Source:( Derby Lounge, 2018)

Figure 111 Ebiad Market Source:(Team B, 2018)


in

the

Downtown.

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8.4.4.Castle Business Park Buildings No. 10 & 11 – H25, H26a & H26b Buildings No. 10 & 11 are mainly office buildings in Castle Business Park in Stirling, UK, with an area of 4200 m2 (Castle Business Park). This benchmark was chosen based on its size and functions that matches our development in creating offices for creative industries. It is proposed to take place in buildings number H25, H26a & H26b.

Figure 114 Castle Business Park Offices No. 10 & 11. Figure 113 Building No. H25. H26a & H26b Source:(Google maps, 2018) Downtown. Source:(Team B, 2018)

8.4.5.THE GYM in El-Mokattam, Cairo – H13 It is a 2-floor building with an area of 600 m2 that consists of a gym, cross-fit area, selfdefense hall and a dancing hall (THE GYM). This benchmark was chosen based on its equipment and functions that meets our development goal in creating a gym as well as halls for self-defense and dance classes. The benchmark is proposed to take place in building No. H13 in Downtown.

Figure 116 THE GYM - El-Mokattam, Cairo Source:(https://www.facebook.com/thegymmokattam/ , 2018)

Figure 115 THE GYM – halls Source:(https://www.facebook.com/thegymmokatta m/, 2018)


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8.4.6.Hyper Panda Market in Nasr City, Cairo – El-Bustan The hypermarket is located along the main road in Nasr City, Cairo with an area of 3900 m2 (Hyper Panda). This benchmark was chosen based on its size and location which lies along the main road in Nasr City, Cairo. It is proposed to take place in ElBustan beside the first entrance gate of El Gouna as shown in the following figure.

Figure 118 Proposed location for the hypermarket in El-Bustan, El Gouna. Source:(Google Earth, 2018)


Figure 117 Hyper Panda Market - Nasr City, Cairo. Source:(Google Earth, 2018)

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9.Infrastructure 9.1.Transportation and Mobility Guidelines 9.1.1.Downtown Area The main idea of the mobility concept is based on making the Downtown more accessible and walkable with low traffic in the middle of it and improving the traffic infrastructure to suit with the typology of the new proposed uses in the regeneration process as well as the nature of the new target groups and their needs in this subject. All of that to ensure a safe urban environment in this area. So, based on the above and the previous analysis of the traffic structure related to the project, the proposed mobility guidelines are stated as follows: 1. Diversifying the regional travel destinations; not only for the existing three destinations, Cairo, Alexandria, and Qena but also to other Egyptian cities, especially Upper Egypt, to increase the connectivity with the other skilled labor markets. As well as, making the internal Shuttle buses more affordable not only for Orascom workers but also for other groups. 2. Relocating regional and local bus stops from the middle of the residential zone to the open space, containing Tuk-tuks and Taxis station, at the northern entrance, to have a low traffic inside this area and to make it more pedestrian friendly, which will help also in creating better stops with proper shading elements and adequate seating. Figure 119.


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Figure 119 Map showing proposed parking, bus stops, mobility interventions and new shuttle bus route. Source:(Team B, 2018)

3. Changing the route of Hurghada shuttle bus by making it only in the outer border of the Downtown, as shown in Figure 119 to mitigate the traffic inside the area and make it available for emergency traffic and only for reaching the parking near the residential units. Also adding new two shuttle bus stops, one of them in El Kafr, which will bring more life into the island and increase its connectivity to other areas. 4. Reducing the exaggerated width of some streets inside the residential zone in Downtown by building up clear parking areas with shading, as shown in figure 66. And utilizing the huge empty sandy land in front of the international school by using it as interim public parking to accommodate the cars of visitors in the outer border of downtown, especially in great events and seasons. Figure 119


94

Figure 120 Map showing proposed solution and mobility interventions in the Downtown. Source:(Team B, 2018)

5. Dealing with dangerous intersections through the establishment of an intermediate island in the wide street between the residential zone and “TAMR HENNA” zone, as shown in Figure 120, and changing the surface of the street to a stone surface as a technique of calming traffic , as in El Kafr area , to make it pedestrian friendly as well as converting the huge asphalt square ,which called "Palms" square in the middle of the residential area, to a paved one with stones with street cafes, as shown in Figure 120, with a side path for the urgent traffic and the accessibility to private parking. In addition, providing adequate and obvious traffic signposts at dangerous roundabouts. Figure 120 6. Improving pedestrian networks by increasing pedestrian areas with stone surfaces, reducing sidewalks heights and having proper ramps as well as using better guidance signage and increasing the number of crossing points, as shown in Figure 120, with proper lighting in the night for both the pedestrian and bicycles especially in the main streets in the outer borders of the Downtown to strengthen the connection. 7. Improving the bicycle lanes and making it more connected and providing shading elements such as trees, especially in the surrounding streets as well as Regeneration Strategy Downtown – El-Bustan

95

increasing the number of public bicycle parking close to the focal points, as shown in Figure 120. That will encourage cycling in the Downtown an make its parts more reachable for the coming entrepreneurs and young talented groups. 9.1.2.El-Bustan Area While, the main idea of the mobility concept in El-Bustan is generally based on improving the situation of the transportation infrastructure and facilities, repairing the public bus system, and ensure a safe environment for the pedestrian in the area, to make

it

a

lively

neighborhood not only for the existing residents but also for relocated families and future inhabitants. So, depending on the main findings from the mobility and transportation analysis in

El-Bustan,

it

Figure 122 The outlines of the Mobility concept in El-Bustan. Source:(Team B, 2018)

was

proposed to improve street

conditions by paving the sandy ones and providing it with sidewalks and safe crossing points for pedestrian, especially the streets in between the residential

clusters

as

well

providing adequate lighting

as and

shading elements not only for these streets but also for the pedestrian paths which in turns need to be clearly defined to ensure the safety of the residents including kids and

Figure 121 An example of the proposed bike and pedestrian paths in El-Bustan. Source: (https://weburbanist.com/2015/02/10/freezeways-using-bikepaths-as-winter-ice-skating-corridors/, 2018)

students. Figure 121. In addition, planning for a bicycle network in the area to publish the culture of cycling, and the possibility to connect this network to the other areas in El Gouna to encourage workers to use bikes as a transport means to reach their work. Regarding public bus system, it was suggested to increase the number of trips and buses, especially in the morning, between Hurghada and El Gouna thus El-Bustan to


96

avoid crowding, as previously mentioned in the site analysis. And to diversify the public transport means in El-Bustan as well as to make the shuttle buses that connect between El-Bustan and El Gouna more affordable not only for workers but also for their

Figure 123 Example of the proposed bus stops in El-Bustan. Source:(Team B and Team B, 2018)

families. Plus, to improve the condition of the bus stops by providing seating, shading, and lighting. 9.2.Energy Guidelines Our proposal for energy was aimed to improve energy infrastructure through environmentally friendly solutions, and these proposals are based on renewable energy. a) Solar Lanterns It was suggested to replace the current streets lanterns in El-Bustan area which are fed by the electrical grid, by lanterns with small solar panels on top fit. These lanterns do not require any external source of electricity, the solar panel charges a battery during the day and it will work during the night using the energy of the battery.

Figure 124 Energy concept in El-Bustan. Source:(Team B, 2018)


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b) Solar Heating The electric heater consumes a lot of energy and it has a very bad efficiency, while there is an opportunity to minimize the consumption through the exploitation of solar radiation by using the solar heating system, where it heats up the water with the solar power and It is possible to use hot water throughout the day. c) Air Coolers They are the devices that used to cool down the climate by the spray and increasing humidity in the air,

especially

in

summer

the when

temperatures are high. The air coolers consist of a water reservoir, a pump and a fan that aid in forced convection, these

devices

additionally are

less

Figure 125 Proposed air coolers in the Downtown. Source:(Team B, 2018)

consumption than traditional air conditioners, and they can be used in public places of restaurants, cafes, and open spaces, as shown in Figure 125, about the distribution sites. d) Optical Fiber Cables as mentioned in the previous questionnaire of the start-ups and creative industry, the high-speed internet was one of the most important requirements in their work because of a lot of them in different fields, such as marketing, advertising, and designing... etc., use the internet to connect with clients, partners, and supporters, as well as for regular meeting with the investors. For that, it was suggested to use the optical fiber cables, where they provide high-speed data transfer.


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10.Economic feasibility 10.1.Economic Development Strategy Downtown The development and renovation activities are divided for strategical and risk management reasons into various work packages. The attractivity of El Gouna as a residence for start-ups, creative industries and coworking spaces requires the availability of adequate housing for a young target group with a low to middle income profile. To secure the availability of this type of housing in the Downtown area, the relocation and renovation strategy currently initiated by Orascom is continued in the first work package. In the second work package the residential development is continued with the relocation and establishment of the retail and hospitality (restaurants, cafés) program as set out in chapter seven and eight into the Downtown area. The evacuated spaces such as the Ebeid Supermarket are now available for the hospitality sector. The new available housing and facilities will attract further settlement of commercial activities in the start-up and creative industry sectors. As it is expected that the currently available spaces (G-Space and other small offices) will quickly be rented out, the renovation of designated blocks (H15, H16, H17, H18) into further co-working and office spaces are addressed in the third work package. To secure the overall attractivity of the area as well as the physical connections with other parts of El Gouna, also the development of the park is included into this work package. Finally, the development is completed with the development of the leisure and sports facilities as well as the final redesign of the public spaces. The sequence of work packages as set out above secures the availability of housing and ancillary functions necessary for the successful settlement of a start-up and creative industry scene. The income generating functions such as housing and retail are to be realized first, which will support the development of the non-income generating functions such as the park and the public spaces. 10.2.Economic Strategy El-Bustan As set out in chapters 4, 5 and 6 El-Bustan lacks attractivity as settlement area for employees in the service and hospitality sector of El Gouna. There are few retail facilities and public spaces are generally of poor quality. Generally, the area is in Regeneration Strategy Downtown – El-Bustan

99

danger to become a 2nd choice place for residential and commercial settlement. This downward trend should be stopped by investments in the public space and the development of an own economic profile. Economically, the area will only become a success if the settlement of economic activities can be stimulated that have a right of its own and are not depending or in competition with the activities in the Downtown or other parts of El Gouna. Furthermore, the vicinity to the entry and exit gates of El Gouna provide in the opportunity to address also clients outside of El Gouna. As set out in chapters 4, 5 and 6 the allocation of a large super market on a location visible from the coastal highway, between the entrance to El Gouna and El-Bustan can be economically successful from various perspectives. The location is easily accessible for client groups coming from Feyrouz and Hurghada and there is plenty of space to create enough parking spots. The availability of parking spaces and vicinity to the entrance makes the location also attractive for permanent and semi-permanent residents of El Gouna. The especially for weekly bulk grocery shopping, the location of the market would be very well suited. With a well-placed, strategic merchandise concept for i.e. dry goods, the Hypermarket will attract other economic activities to El-Bustan that can be beneficial to the residents. Whereas clients can buy their dry goods in bulk at the supermarket, fresh products can be obtained from little shops surrounding the supermarket. Supply for the fresh products shops can come from El Gouna Vegetables farm or El Gouna Fish Farm. Once the Hypermarket and fresh products shops have established and attracted enough clients, other activities such as carpenters and handicraft ateliers can settle. Next to the Hypermarket itself, these additional small scale commercial and retail activities will create job opportunities, especially for family members and spouses of employees in the service and hospitality sector of El Gouna. The rental income generated by the Hypermarket and other activities can be used to fund the maintenance and repair of the public spaces.


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10.3.Financial Feasibility Downtown The financial feasibility of the regeneration and redevelopment activities of Downtown is based on a ten-year investment analysis, with following input into the calculations. The full calculation can be found in the appendix excel sheet. Net and Gross Floor areas The program of functions as presented in chapter 8 has resulted in the following table of floor areas. For the calculation of the rental income net floor (lettable spaces) areas where applied, whereas the building costs where based on the gross floor areas. For the estimation of the net floor area’s a building efficiency factor were applied on the gross floor areas from the development plan. The floor efficiency rate was derived from benchmark research as presented in chapter 8.4

Work

Function

Package

Net

Floor

Gross

Floor

Floor Efficiency

Area in m²

Area in m²

in %

WP 1

Co-Living

1943

2428

80

WP 1

Co-Working

2374

2967

80

WP 1

Affordable Housing

4429

5679

78

WP 2

Retail

1325

1656

80

WP 2

Mini Market

1562

1952

80

WP 2

Housing class A

2236

2867

78

WP 3

Creative Industries

6549

8281

78

WP 3

Park

n.a.

15000

n.a.

WP 4

Gym

892

1144

78

WP 4

Leisure

1030

1321

78

WP 4

Public Spaces

7500

Table 9 Gross and Net Floor Areas for financial Analysis, Source: (Project team, 2018).

10.4.Rents and Yields To calculate the exit value of the cash flows at the end of period ten of the investment analysis the annual gross rental income of that period was capitalized by the gross initial yields. Speculative yield compression or decompression caused by market dynamics during the period of investment have not been considered.


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Throughout the period of investment appropriate reservations have been made for maintenance and repair, thus financially securing the technical state of the buildings throughout the ten-year investment window. The rental levels and yields as they are applied in the calculation are based on the results from the site and market analysis in chapter three and four. Further sources have been based on information received from Orascom Development and site survey. Function

Rent/ m² per month in EGP

Gross Initial Yield

Co-Living Space

120

33 %

Co-Working Space

270

33 %

Affordable Housing

50

20 %

Retail

270

33 %

Mini Market

270

33 %

A Class Housing

120

33%

Creative Industry

270

33 %

Gym

270

33 %

Leisure

270

33 %

Table 10 Rent and Yield Assumptions for financial Analysis, Source: (Project team, 2018).

10.5.Net Cash Flow Settings The annual net operating income was based on the following cash flow settings. These settings are derived from general accepted accounting practices as well as from data obtained in the Site and market Analysis. Cost / Cash Flow Position

% of Gross Rental Income

Annual Rent Increase

10

Operating Charges

12

Vacancy Expectation

5

Table 11 Cash Flow Setting Assumptions, Source: (Project team, 2018).

10.6.Development and Construction Costs The development and construction have been structured according to the German Costs Structure Standard 276-1 for building planning and construction. The standard is divided into 7 groups (100 Site, 200 Clearance, 300 Structure- Construction Works, 400 Structure – services, 500 External Works, 600 Furnishing, furniture and artistic appointments, 700 Incidental Building Costs). As it is assumed that all land is already owned by El Gouna the costs group 100 Site has not been considered for the Regeneration Strategy Downtown – El-Bustan

102

calculations. Furthermore, the expenses related to group 600 Furnishing, furniture and artistic appointments have not been considered into the calculations. Based on information obtained from Orascom the following cost Levels have been applied into the calculations: Function

Cost

Group

Cost Group 220

Cost Group 300-

Cost Group 500

212 in EGP/

in EGP/ m²

400 in EGP/ m²

in EGP/ m²

m²

(demolition

(Construction

(external

(clearance)

infrastructure)

costs)

works)

and

Affordable

6500 LE

Housing Co-Living 9000 LE

Co-Working Class

A

100 LE

600 LE

1000 LE

Housing Retail

3000 LE

Mini Market Creative

9000 LE

Industries Park

500 LE

350 LE

Gym

3000 LE

1000 LE

700 LE

350 LE

43,931,000

4,509,000

Leisure Public Spaces Total Costs in Mio EGP

334,000

5,650,000

Table 12 Costs Cost Group 200-500

In the costs group 700 Incidental building costs the following rates where applied for planners and administration fees. Cost Group

% of construction costs 200-600

730 Architects and Planners

10 %

710 Project Administration

5%

719 Marketing

2%

In total the development and construction costs for the whole project amount to 272,6 Mio EGP.


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10.7.Before tax Cash Flow and IRR, conclusion

Figure 126 Before Tax Cash Flow Source:(Project team, 2018)

As set out in the graph above the project will require investments caused by the development and construction of the various consecutive work packages in the first three years. To finance these investments, next to equity invested by Orascom, external financing sources such as banks or other lending must be obtained. For the current study only, the property related cash flows have been considered. Based on the ten year of consecutive cash flows caused by the development, construction, operation and sales an Internal Rate of Return IRR of 25,78 % can be calculated. Since current lending rates are well below the estimated IRR, it is expected that financing the property will be unproblematic. Given the fact that the current lending rate issued by the central bank of Egypt amounts 12,8 percent p.a. (CBE,2018) and considering the fact that risks in the assumptions for rent and costs are covered by thorough site and market analysis, it can be concluded that the assessed IRR is neither to high unrealistic nor to low (the project will cause a loss due to high financing costs). The project is, under the conditions set in the calculations, thus expected to be financially and economically feasible.


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11.Legal Framework 11.1.Public Law 11.1.1.Planning Law The projects in Downtown and El Bustan are in accordance with the Strategic Plan Hurghada 2020 (not yet approved) as far as residential areas, areas for co-working and co-living and smaller service areas are concerned. It must be cleared if the concept of the intended supermarket in El Bustan is acceptable with the objectives of the Strategic Plan. Law Nr. 7 (2017) provides in section 214 to prepare the project with a feasibility study which covers he technical, economic and social aspects of the project, the sources of funding and the framework and time plan for implementation. 11.1.2.Building Regulations The upgraded buildings in Downtown and the new buildings in El Bustan must be constructed according to the building regulations in sections 91-1108 of the Executive 11.1.3.Side Law In the newly planned residential areas for El Bustan the standards of section 4 of the Environmental Law (1994) have to e considered. 11.2.Civil Law Details of the land use in the newly built and upgraded project areas can be fixed in contracts between Orascom and tenants or other partners in the same way as in the past. In summary the project can be realized according to actual legislation. There is no need for additional new planning.


105

12.Project Management 12.1.Stakeholders Management Strategy In the following table, we listed the main stakeholders for our project, the role each stakeholder has during the project phases and what is the engagement tool used by our team to collaborate and coordinate between them. Stakeholder

Project Phase

Engagement Tool

Initiation

Planning

Execution

Orascom

Responsible

Involve

Responsible

Direct Contact

Downtown residents

Inform

Consult

Coordinate

Public meetings, debates, emails

El-Bustan residents

Inform

Consult

Coordinate

Public meetings, debates

Community

Inform

Consult

Coordinate

Conference

Inform

Inform

Inform

Emails,

Forum

El Gouna Future residents

Social

media,

Social

media,

Social

media,

Social

media,

marketing Hurghada residents

Inform

Inform

Inform

Emails, marketing

Tourists & Visitors

Inform

Consult

Inform

Emails, marketing

Start

Ups

&

Inform

Inform

Inform

Entrepreneur Future Investors

Emails, marketing

Inform

Inform

Inform

Emails, marketing

Table 13 Stakeholders Management Table, Source: (Project team, 2018).

Direct contact tool will be used with Orascom which is the main stakeholder for this project and the one responsible for the initiation and execution of the project. Meetings, debates, and emails will be used with different types of residents in El Gouna for informing and consulting throughout the project phases. Conferences will be convened for the Community Forum El Gouna to discuss and consult the development taking place in the areas of Downtown and El-Bustan. Emails and social media marketing will be used to inform the future residents, visitors, tourists, startups, and future investors about the project phases and accomplishments. These types of engagement tools are necessary to keep the stakeholders involved and engaged and to help cross the project’s finish line and achieve the satisfaction of all parties as much as possible. Regeneration Strategy Downtown – El-Bustan

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12.2.Project Management Strategy The project is divided into 4 phases, each phase has several stages based on relocating the residents from Central Eastern Downtown to El-Bustan, renovating the evacuated buildings and operating the renovated buildings. From the following timeline shows the estimated duration of the project to be completed, the duration of each phase and the exit points of the project.

Figure 127 Project Timeline. Source:(Team B, 2018)

12.2.1.Phase 01 This phase consists of six buildings

which

are

planned to be divided into affordable

housing,

co-

working space and coliving space buildings with a total area of 7860 m2. The process of relocating the current residents and renovating the evacuated buildings will take around

Figure 128 Phase 01. Source:(Team B, 2018)

one year to be accomplished. The exit strategy for this phase is changing the use of


107

the co-working and co-living spaces buildings into residential buildings. The following figure shows the buildings to be developed in the first phase. 12.2.2.Phase 02 This phase consists of five buildings

which

are

planned to be developed into (A) class housing, retails and mini market with a total area of 5200 m2.

The

process

of

developing this phase will take around one year to be accomplished and the exit strategy is to change the


building use of the retails and mini market into cafes and restaurants. The following figure shows the buildings to be developed in the second phase of the project. 12.2.3.Phase 03 The third phase consists of three buildings which are planned to be developed into offices for creative industries and a public park with an area of 21500 m2.

The

process

of

developing the buildings into offices will take around one year and the park will take around a year and a


half to be accomplished as shown in the previous timeline of the project. The exit strategy for this phase is finding other investors who might be interested in this phase of the project. The following figure shows the park and the buildings planned to be developed in the third phase.


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12.2.4.Phase 04 The fourth and the last phase

of

this

project

consists of three buildings planned to be renovated and

developed

into

recreational

facilities

well

new

as

a

as

paved

walkway open space. The duration

for

this

development is one year as shown

in

the


previous

timeline of the project. The exit point for this phase it to sell the units to other investors. The following figure shows the location of the buildings planned to be developed as well as the new open spaces in Downtown. 12.3.SWOT Analysis

The project might transform some weaknesses to strengths such as; -

The economy of El Gouna is based on tourism, the project solves this weak point by attracting investors such as start-ups, and creative industry.

-

Improve the speed of the internet to Commensurate with the requirements of investors.

-

Diversification of economic activities and improve educational level in El-Bustan area

There is another weak point, but it turns to opportunity through the project; the rent prices in El Gouna are more expensive than other areas in Egypt may this problem is solved by affordable housing in El-Bustan and Downtown The project created more opportunities such as; -

Create job opportunities for woman in El-Bustan area by establishing a handicraft center.

-

Attract more investors may attract more tourist


109

The project will not change the threats points such as; -

El Gouna has one controlled investor, and that perhaps makes a high risk for foreign investors.

-

El Gouna will be opened to new groups, and this may create a security concern.

-

Development of El-Bustan may increase the rent prices in the area.

-

Make El Gouna attractive place that leads to increasing the number of people, and therefore it is will become a traffic is crowded.


110

13.Feasibility Conclusions Our project’s concept addresses the urban, social and economic challenges noted during the market and site analysis of El Gouna in general and the areas of Downtown and El-Bustan in particular. Regarding the urban objectives, the concept aims at having a vibrant connection between the zones by strengthening their correlation, achieving the best utilization for the open spaces and enhance the quality of life by providing the needed services in both areas taking into consideration the aspects of sustainability. Moreover, the concept seeks to attract new and diverse groups by introducing new markets to the town, as well as reducing the sense of social segregation regarding the social objectives. Concerning the economic objectives, the concept intends to catalyze the vitality of the economy by depending not only on tourism but also on the diverse and sustainable economic bases.


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Table of Figures Figure 1 El-Gouna region map shows the distance from Hurghada Airport. Source: (Google maps, 2018) ................................................................................................ 13 Figure 2 El Gouna region map shows the distance from Cairo. Source: (Google maps, 2018).............................................................................................................. 13 Figure 3 El-Gouna region map shows the distance for the startups cities in the Red Sea region. ............................................................................................................... 13 Figure 4 The study sites in El-Gouna. Source: (Google Earth, 2017) ....................... 14 Figure 5 Main finding of the spatial analysis, Downtown area. Source: (Team B, 2018) ........................................................................................................................ 15 Figure 6 The palms square in the western residential zone. Source:(Team B, 2018) ................................................................................................................................. 16 Figure 7 The big empty and sandy land in front of the international school. Source:(Team B, 2018) ............................................................................................ 16 Figure 8 Semi-private courtyards in the Downtown area. Source: (Team B, 2018) .. 17 Figure 9 Main finding of the spatial analysis, El-Bustan area.Source: (Team B, 2018) ................................................................................................................................. 17 Figure 10 Current situation of the open spaces in the residential clusters, El-Bustan area. Source: (Team Bs, 2018) ................................................................................ 18 Figure 11 The small plaza in front of the "Bayn Al Qasrayn" cluster, Al-Bustan area. Source: (Team B, 2018) ........................................................................................... 18 Figure 12 The abandoned public open space beside the kindergarten, El-Bustan area. Source: (Team B, 2018) .................................................................................. 18 Figure 13 People utilize parking area as a place for sitting at night, El-Bustan area. Source: (Team B, 2018) ........................................................................................... 19 Figure 14 People have their own seats in front of the house gate at night, El-Bustan area. Source: (Team B, 2018) .................................................................................. 19 Figure 15 Accessibility and Roads hierarchy map in the Downtown area. Source: (Team B, adapted from Google Earth, 2018)............................................................ 22 Figure 16 Public and private transportation stop in Downtown. Source: (Team B, 2018) ........................................................................................................................ 23 Figure 17 Stony surfaces as a technique of the deliberate slowing of traffic in El-Kafr area. ......................................................................................................................... 23 Figure 18 The street without crossing points, in front TUB Campus, the Downtown border. ...................................................................................................................... 23 Figure 19 Traffic jam in the street, in front TUB Campus, Friday 11/5/2018, Afternoon. ................................................................................................................................. 24 Figure 20 Well designed parking with good shade, Downtown. Source: (Team B, 2018) ........................................................................................................................ 24 Figure 21 Parking needs to be improved in the western residential zone, Downtown. Source: (Team B, 2018) ........................................................................................... 24 Figure 22 Unfriendly stony surfaces for cycling in El-Kafr zone. Source: (Team B, 2018) ........................................................................................................................ 25 Figure 23 The only public bicycle parking near the Downtown area. Source: (Team B, 2018) ........................................................................................................................ 25 Figure 24 Interrupted bicycles network, Downtown. Source: (Team B, 2018) .......... 25 Figure 25 Bikes lanes without shading in front of TUB campus. Source: (Team B, 2018) ........................................................................................................................ 25


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Figure 26 Roads hierarchy map in El-Bustan. Source: (International Winter School: Renovation of Downtown El Gouna, TUB Campus El Gouna, 2014) ....................... 26 Figure 27 Sandy secondary streets in El-Bustan area. Source: (Team B, 2018)..... 26 Figure 28 Most of the Streets without sidewalks in El-Bustan area. Source: (Team B, 2018) ........................................................................................................................ 26 Figure 29 Absence of pedestrian facilities in the area. Source: (Team B, 2018) ...... 27 Figure 30 The lack of clear and paved pedestrian paths in the area. Source: (Team B, 2018) .................................................................................................................... 27 Figure 31 Main streets in El-Bustan have no shading elements. Source: (Team B, 2018) ........................................................................................................................ 27 Figure 32 Street lighting is not adequate in some places, El-Bustan area. Source: (Team B, 2018)......................................................................................................... 27 Figure 33 Bus stop without Shading and seating, El-Bustan area. Source: (Team B, 2018) ........................................................................................................................ 28 Figure 34 Bus stop in El-Bustan without adequate lighting at night. Source: (Team B, 2018) ........................................................................................................................ 28 Figure 35 percentage of Nationalities in El Gouna. Source: (Jasmin Hussein, 2018)29 Figure 36 El Gouna Master Plan. ............................................................................. 30 Figure 37 Average wind speed and temperature in El Gouna. ................................. 30 Figure 38 Central Downtown. Source: (Team B, 2018) ............................................ 31 Figure 39: Road connecting Downtown with Marina. Source: (Team B, 2018)......... 31 Figure 40 Shaded housing units in El-Bustan. Source: (Team B, 2018)................... 32 Figure 41 Unshaded bus station in El-Bustan. Source: (Team B, 2018) .................. 32 Figure 42 Shaded bus station in El-Bustan. Source: (Team B, 2018) ...................... 32 Figure 43 Unshaded housing units in El-Bustan. Source: (Team B, 2018) ............... 32 Figure 44 Categorized bins. Source: (Team B, 2018) .............................................. 32 Figure 45 Dog waste bin. Source: (Team B, 2018)................................................... 33 Figure 46 Garbage trolley in El-Bustan. Source: (Team B, 2018)............................. 33 Figure 47 Downtown map with zones. Source: (Team B, 2018) .............................. 39 Figure 48 Housing Blocks in the Downtown. Source: (Team B, 2018) ..................... 40 Figure 49 Map of El-Bustan Area with zones. Source: (Team B, 2018) ................... 41 Figure 50 Housing in Bain Al Kasrain area. Source: (Team B, 2018) ....................... 42 Figure 51 Housing in South El-Bustan area. Source: (Team B, 2018) ..................... 42 Figure 52 Housing in Al Monkhafad area. Source: (Team B, 2018) ......................... 43 Figure 53 Housing in Al Deiar area. Source: (Team B, 2018)................................... 43 Figure 55 Big commercial activities In Downtown. Source: (Team Bs, 2018) ........... 44 Figure 54 Small commercial activities In Downtown. Source: (Team Bs, 2018) ....... 44 Figure 56 Downtown Zones and commercial activates locations. Source: (Team B, 2018) ........................................................................................................................ 45 Figure 57 El-Bustan Zones and commercial activates locations. Source: (Team B, 2018) ........................................................................................................................ 46 Figure 58 Small commercial activities In EL-Bustan. Source: (Team B, 2018) ......... 46 Figure 59 Hotels Location in El Gouna. Source: (Team B adpted from Google Earth, 2018) ........................................................................................................................ 47 Figure 60 UNCTAD classification of creative industries. Source: (UNCTAD, 2008) . 50 Figure 61 Co-Working offices prices/ month. Source: (Team B, 2018)..................... 51 Figure 62 Pure-Tech Investors in Egypt. Source: (Team B, 2018) ........................... 52 Figure 63 Annual Developer Salary. Source: (Team B, 2018) .................................. 53 Figure 64 The field of the participants in the Start-Up and/or Creative industries. Source: (Start-up and Creative Industry Questionnaire, 2018) ................................. 55


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Figure 65 The numbers of the members of their teams. Source: (Start-up and Creative Industry Questionnaire, 2018) .................................................................... 56 Figure 66 how much they are willing to spend per month on housing in US $, inclusive utilities. Source: (Start-up and Creative Industry Questionnaire, 2018) ..... 56 Figure 67 How much they are willing to spend per month on office/business space (for the whole team). Source: (Start-up and Creative Industry Questionnaire, 2018) 56 Figure 68 The nature of the periodic meetings with their investor Source: (Start-up and Creative Industry Questionnaire, 2018) ............................................................. 56 Figure 69 The current workplace of their business. Source: (Start-up and Creative Industry Questionnaire, 2018) .................................................................................. 57 Figure 70 The favorite workplace of their business. Source: (Start-up and Creative Industry Questionnaire, 2018) .................................................................................. 58 Figure 71 The available facilities in TUB that are relevant to their business. Source: (Start-up and Creative Industry Questionnaire, 2018) .............................................. 58 Figure 72 The amenities that they expect to be included in their housing. Source: (Start-up and Creative Industry Questionnaire, 2018) .............................................. 58 Figure 73 The required space for their businesses/ their activities. Source: (Start-up and Creative Industry Questionnaire, 2018) ............................................................. 58 Figure 74 Go Gouna Vision Logo. ............................................................................ 63 Figure 75 Proposal Development 1 Downtown Map. Source:( Team B, 2018) ........ 64 Figure 76 Proposal Development 1 EL-Bustan Map. Source:( Team B, 2018) ........ 65 Figure 77 Building No.H18 in the Downtown. Source:( Team B, 2018) .................... 66 Figure 78 Map shows the proposed uses and functions in the Downtown, in alternative 3. Source:( Team B, 2018) ...................................................................... 67 Figure 79 The elements that are needed for the success of smart projects. Source: (Waleed Nassar, 2008) ............................................................................................. 68 Figure80 Smart Village in Cairo. Source:( www.mena.com.eg, 2018) ...................... 69 Figure 81 Comparison between the four alternatives. Source:( Team B, 2018) ....... 70 Figure 82 The proposed new functions in the Downtown. Source:(Team B, 2018) .. 72 Figure 83 Map shows the existing land uses in the Downtown. Source:(Team B, 2018) ........................................................................................................................ 72 Figure 84 Map shows the proposed land uses in the Downtown. Source:(Team B, 2018) ........................................................................................................................ 73 Figure 85 Creative industries' offices in the Downtown. ........................................... 73 Figure 86 Proposed Co-working spaces in the Downtown with their current semiprivate courtyard. Source:(Team B, 2018) ................................................................ 74 Figure 87 Proposed Co-living space in the Downtown with its current courtyard. .... 74 Figure 88 Jobo's Sports Bar & Restaurant in the Downtown, an example of proposed new retail. Source: (jobos.elgounarestaurants.com, 2018) ....................................... 76 Figure 89 The accessibility to the gym from its surrounding. Source:(Team B, 2018) ................................................................................................................................. 76 Figure 90 Examples of proposed outdoor GYM in the community park. Source:(www.google.com , 2018)............................................................................. 77 Figure 91 Example of proposed playground for kids. Source:(www.google.com , 2018) ........................................................................................................................ 77 Figure 92 Example of proposed playground for kids. Source:(www.google.com , 2018) ........................................................................................................................ 77 Figure 93 Example for street cafes in a square, Tamr Henna Cafe in the Downtown. Source: (www.7-ayam.com , 2018) .......................................................................... 78


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Figure 94 Example for a commercial street as a public open space with street cafes, Downtown in Beirut, Lebanon. Source: (www.lebanonfiles.com, 2016).................... 78 Figure 95 Example for a commercial street as a public open space with street cafes, Downtown in Beirut, Lebanon. Source: (www.alarabpost.com, 2018) ...................... 78 Figure 96 Example of the proposed outdoor kiosks.................................................. 79 Figure 97 Existing land use in El-Bustan. Source:(Team B, 2018) ........................... 80 Figure 98 El-Bustan Zoning. Source:(Team B, 2018) ............................................... 81 Figure 99 Proposed Land use In El-Bustan. Source:(Team B, 2018) ....................... 82 Figure 100 Sociological impacts of the development proposal on the Downtown area. Source:(Team B, 2018) ............................................................................................ 85 Figure 101 Sociological impacts of the development proposal on El-Bustan area. Source:(Team B, 2018) ............................................................................................ 86 Figure 102 Skylight Shades. Source: (www.galagala.org, 2018) .............................. 87 Figure 103 Sunday Bazaar in Karachi - Latent Thoughts. Source:(Team B, 2018) .. 88 Figure 104 Unshaded bus stations in El-Bustan. Source:(Team B, 2018)................ 88 Figure 105 Shading and buffer zone locations in El-Bustan. Source:(Team B, 2018) ................................................................................................................................. 88 Figure 106 Shading and park locations in Downtown. Source:(Team B, 2018) ........ 88 Figure 108 Sun & Co. a shared room. Source:( sun-and-co.com, 2018) .................. 89 Figure 107 Sun & Co. co-working space. Source:( sun-and-co.com, 2018) ............. 89 Figure 109 Seedspace in Cairo. Source: (www.coworker.com, 2018) ...................... 90 Figure 110 Shared desks in Seedspace Cairo. Source: (www.coworker.com, 2018) 90 Figure 111 Ebiad Market in the Downtown. Source:(Team B, 2018) ........................ 90 Figure 112 Derby Lounge Café, Cairo. Source:( Derby Lounge, 2018) .................... 90 Figure 113 Building No. H25. H26a & H26b - Downtown. Source:(Team B, 2018) .. 91 Figure 114 Castle Business Park Offices No. 10 & 11. Source:(Google maps, 2018) ................................................................................................................................. 91 Figure 115 THE GYM – halls Source:(https://www.facebook.com/thegymmokattam/, 2018) ........................................................................................................................ 91 Figure 116 THE GYM - El-Mokattam, Cairo Source:(https://www.facebook.com/thegymmokattam/, 2018) .................................. 91 Figure 117 Hyper Panda Market - Nasr City, Cairo. Source:(Google Earth, 2018)... 92 Figure 118 Proposed location for the hypermarket in El-Bustan, El Gouna. Source:(Google Earth, 2018) .................................................................................... 92 Figure 119 Map showing proposed parking, bus stops, mobility interventions and new shuttle bus route. Source:(Team B, 2018) ................................................................ 94 Figure 120 Map showing proposed solution and mobility interventions in the Downtown. Source:(Team B, 2018).......................................................................... 95 Figure 121 An example of the proposed bike and pedestrian paths in El-Bustan. Source: (https://weburbanist.com/2015/02/10/freezeways-using-bike-paths-as-winterice-skating-corridors/, 2018) ..................................................................................... 96 Figure 122 The outlines of the Mobility concept in El-Bustan. Source:(Team B, 2018) ................................................................................................................................. 96 Figure 123 Example of the proposed bus stops in El-Bustan. Source:(Team B and Team B, 2018) .......................................................................................................... 97 Figure 124 Energy concept in El-Bustan. Source:(Team B, 2018) ........................... 97 Figure 125 Proposed air coolers in the Downtown. Source:(Team B, 2018) ............ 98 Figure 126 Before Tax Cash Flow Source:(Project team, 2018) ............................ 104 Figure 127 Project Timeline. Source:(Team B, 2018)............................................. 107 Figure 128 Phase 01. Source:(Team B, 2018) ....................................................... 107


115

Figure 129 Phase 02. Source:(Team B, 2018) ....................................................... 108 Figure 130 Phase 03. Source:(Team B, 2018) ....................................................... 108 Figure 131 Phase 04. Source:(Team B, 2018) ....................................................... 109


116

List of Tables Table 1 Transport means in El Gouna, Source: (Project team survey, 2018). .......... 21 Table 2 All amounts in L.E., Source: (Ismael Rkabi, 2018). ..................................... 40 Table 3 All amounts in L.E., Source: (Ismael Rkabi, 2018). ..................................... 43 Table 4 G-Space implementation phases, Source: (An interview with Hanane Abdelrahman; G-space manager, April 2018). ......................................................... 54 Table 5 G-Space renting prices, Source: (An interview with Hanane Abdelrahman; Gspace manager, April 2018)...................................................................................... 54 Table 6 TUB Campus El Gouna supporting facilities, Source: (www.campuselgouna.tu-berlin.de, 2018). ...................................................................................... 54 Table 7 Stakeholders Analysis Table, Source: (Project team, 2018) ........................ 59 Table 8 Summary of the projects area, functions, objectives and target group, Source: (Project team, 2018). ................................................................................... 84 Table 9 Gross and Net Floor Areas for financial Analysis, Source: (Project team, 2018). ..................................................................................................................... 101 Table 10 Rent and Yield Assumptions for financial Analysis, Source: (Project team, 2018). ..................................................................................................................... 102 Table 11 Cash Flow Setting Assumptions, Source: (Project team, 2018). ............. 102 Table 12 Costs Cost Group 200-500 ...................................................................... 103 Table 13 Stakeholders Management Table, Source: (Project team, 2018). ........... 106


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Appendixes Appendix 1: Start-up and Creative Industry Questionnaire

Please specify your field/ branch in the Startup and/or Creative Industry Advertising Marketing Media Public Relations Film & TV Business Innovation Other (please specify) ………………………………. Are you work individually or in a team? Individually Team.If so, How many members? ……………………………… Please answer following questions: How much are you willing to spend per month on housing in US $ p.m., inclusive utilities?

US $

How much are you willing to spend per month on office/business space (for the whole team)

US $

How much are you willing to spend per month on cost of living (food, beverages, going out)

US $


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How much are you saving per month to reinvest in your company? US $

Please specify the nature of the relationship with your investor The type of investors you deal with is: Financing

Financing and supervision

Periodic meetings are held: Weekly

monthly

yearly

………

Periodic meetings are held as: Face to face meetings

Online meetings

Other terms/ requirements/ constrictions ……………………………………………………………………………………………… ………. Are your businesses/your activities located in Egypt? Yes If No, Where? …………………………………. If so, for what reasons did you establish your business in Egypt? ……………………………………………………………………………………………..

How do you evaluate the importance of the following factors for your business and how do you evaluate the actual situation at your location? Regeneration Strategy Downtown – El-Bustan

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(Please tick one school mark 1-6!) Importance of the following factors for your business (1 = very important, 6 = totally unimportant)

The factor

1 2 3 4 5 6 N/A

Proximity to customers and clients Proximity to suppliers and service providers Proximity to potential partners Proximity to skilled labor Proximity to local cultural and creative scene of city Proximity to competitors Proximity to the own residence Proximity to the recreation and entertainment places

Evaluation of your current location (1 = very good, 6 = very poor) The factor

1 2 3 4 5 6 N/A

Proximity to customers and clients Proximity to suppliers and service providers Proximity to potential partners Proximity to skilled labor Proximity to local cultural and creative scene of city Proximity to competitors Proximity to the own residence Proximity to the recreation and entertainment places

If all above factors could be equally met in El Gouna, would you move your business to El Gouna? Yes No, Why Not?


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Which factors have a generally positive/negative impact on your business? (Keywords) Positive……………………………………………………………………..

Negative…………………………………………………………………….

Which of El Gouna facilities support your business? Which do you need but are not existed in El Gouna? Facilities support your business……………………………………………………………… Required facilities in your business………………………………………………………….. Considering the available facilities in Technische Universität Berlin - Campus El Gouna…which of them are relevant to your business? PC Pool

Pilot

and

Lap-scale

plants

for Chemical

Studio Rooms for wastewater treatment recording

analytical

Field research/sampling machines and laboratories. equipment

Workshops

Within the framework of your business (main activity), where is your current and where is your favorite workplace? Current Workplace

Preferred Workplace

In the apartment

In the apartment

Single commercial space (rent)

Single commercial space (rent)

Single commercial space (ownership) Single commercial space (ownership) Shared office / Co-working space

Shared office / Co-working space

Commercial space / office / studio in Commercial space / office / studio in a cultural economic center

a cultural economic center

What are amenities that you expect to be included in your housing for the price as mentioned under question 4? Shared pool Shared community space/ Event space Regeneration Strategy Downtown – El-Bustan

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Shared living /TV room None of above All ticked above but private

How much space your business / your activities require? (Rooms / or in m2)? Shared desks only Shared desks and private working spaces Private workings spaces only Shared meeting rooms only Shared and private meeting rooms Private meeting rooms only Event space Communal kitchen/lunchroom Other Other Other .................................................................................................................................. --------------Note.

The

results

of

the

questionnaire

are

available

at:

https://docs.google.com/forms/d/1w97QrYMMQGc2nQkWoH5J4ccHEQ7wzkMpMxJr kpto2aY/viewanalytics


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Internship Guidelines Department of Urban Development 2018