Egypt's Alexandria seeks second revival

ALEXANDRIA, Egypt, Aug 27 (Reuters) Alexandria, the Egyptian coastal city where Cleopatra had love affairs with Julius Caesar and Mark Anthony, is trying to regain some of its old glory as a tourism destination for European and Arab elites.

This summer, a new luxury hotel opened on the site of a grand old establishment where where Austrian archdukes and Egyptian khedives would gather for Viennese pastries or tennis a century ago.

Last year a multi-storey mall with brands such as Guess and LaSenza opened to the public, and the city is building a new international airport to meet demand from tourists.

With Egypt's economy recording its third consecutive year of gross domestic product growth over 5 per cent, an oil-fuelled boom in Gulf economies bringing more tourists, and European economies strong, the city is already enjoying some success.

''Alexandria has been so neglected over the past decades but there is a still a lot of nostalgia for the way it used to be,'' said Stephan Killinger, manager of the new Four Seasons San Stefano hotel.

The hotel, built overlooking the Mediterranean on the model of its famous predecessor, has been sold out since opening in July, Killinger said.

''We're trying to recreate the feeling of the original San Stefano,'' Killinger said of the new 118-room hotel, where a marina is under construction to accommodate guests arriving from Europe by sea.

The San Stefano Mall, a short walk from the city's Mediterranean beaches, is bustling with Egyptian shoppers and some Gulf tourists on an August afternoon.

''Our business is up about 25 per cent this year due to all the investments in Alexandria and the north coast,'' said Tamer Hashem, manager of Diamond House SAE, one of many jewellery shops in the mall.

A SECOND REVIVAL Founded by Alexander the Great, the city was the world's centre of learning for the 300 years before the birth of Christ. Ships visiting the city's harbour were searched for manuscripts to contribute to its 500,000-scroll library.

Destroyed by fire and earthquakes, most of the ancient city now lies under the sea.

Alexandria was revived in the 19th century and early 20th century as a European-style city, with villas and palaces overlooking the sea, funded by profits from Egypt's cotton trade.

The San Stefano hotel casino was one of its landmarks, built in the style of the resorts along the French coast.

The city has spent millions over the past decade restoring its infrastructure. Although it has always attracted Egyptians on summer holidays, it still accounts for only a small fraction of Egypt's expanding foreign tourist market.

Just seven or eight years ago, a walk down the Corniche, or sea front, was marred by falling buildings, said Fathi Nour, chairman of the Egyptian Hotel Association.

The new international airport will be able to handle 1.5 million passengers a year and 30 flights a day when finished in 2009, said Said Khallaf, the airport's general manager.

Now the city attracts about half a million passengers a year and uses an old military base for international flights.

''There are more flights coming here from the Gulf, Europe, and even Asia,'' Khallaf said.

REUTERS RN BD1333