Cairo, Egypt-To merchants who work at A-Hussein in Egypt, the international economic crisis had a worse effect on their livelihood than Al-Hussien bombings.
“Terrorism now everywhere so tourists got used to that and they know it could happen in any other country so it is an effect for a short period,” said Samir Makary Economic consultant to the Egyptian Federation of Tourism ETF.
According to Makary the tourism industry had a growth rate of 25 percent throughout the first three quarters of 2008 but since the global economic crisis hit in September numbers have been dropping.
Conrad revenue's dropped by 23% comparing it to last year.
This sentiment is not confined to Al-Hussein area, it is echoed all over Egypt’s many tourists’ destinations.
“The Hussein bombs did not affect tourism here the economic crisis affected tourism here” said Ahmed Mohammad boat captain in Hurghada.
In cities away from the capital like Hurghada or Sharm el-Sheikh people who are part of the tourism industry can point out the effect of the global economic crisis.
“People who used to come 2 times a year for a vacation now come only once,” said Mohammad.
Americans and Europeans are considered a portion of the number of tourists who visit Egypt each year.
“When it comes to Egypt the tourist segment we address is rather middle class which actually will be highly affected by the financial crisis,” said Makary. “So we see a significant drop in the tourism visitors or the tourism income in the country.”
Because of the falling economies of the world countries, citizens who kept their paycheck through the international crisis look for cheaper destinations.
“It is not expensive a week in Hurghada is 200 Euros,” said Mohammad. “Yet, Asian countries like Malaysia and Singapore or the Maldives are cheaper like 100 Euros for a whole week.”
According to Reuters, Egypt’s receipts from tourism fell 10 percent to $2.46 billion in the second quarter of 2008/2009 compared with the same period a year earlier.
“But Egypt has an advantage we have a winter season where is you have tourism in winter in Egypt is excellent,” said Makary. “Those countries do not compete with you [Egypt] in winter they compete only in summer.”
However, that does not rule out the effect of the price difference. Although Egypt is one of the most well known tourists’ destinations, competition in the global tourism industry is fierce.
“We have to reduce our prices now to maintain the same relationship with other countries,” said Makary.
To maintain its competitive edge, the Egyptian ministry of tourism sought advice from Makary consulting.
“By offering [tourists] them a good service at a lower price,” said Makary. “As long as this lower price it is not actually in terms of ratio is much lower than the average then [it] is fine.”
Airliners like Alitalia and Air France have reduced their prices by 50%.
In reaction, Egypt’s minister of tourism announced in April lowering the charges on various Gulf tourists’ services to be equivalent to those for domestic tourists, according to Daily News Egypt.
“Chartered flights will offer promotional charges to four tourist destinations in the country,” said Zohair Garranah in a news conference during a 3 day visit to Saudi Arabia. “Conducted tours will be organized to Aswan, Marsa Alam and northern coastal areas with less than half the normal price.”
The current occupancy rate in Egyptian hotels is fluctuating between 66% and 70%, according to the ministry of tourism figures. The tourism industry in Egypt employs 10% of the country’s workforce. It is the main source of income in cities like Hurghada, Sharm Elsheikh or Luxor . The industry is still fragile as it has been hit many times by terrorists’ attacks on tourist places.
Cairo remains an attractive place despite economic recession and bombings.
“We were really affected after the Luxor bombing of tourists,” said Mohammad.” It took almost 2 years for tourists to forget and start gradually coming back to Egypt.”
More than 60 tourists were killed in Luxor in a shoot-out terrorist attack on a bus in November 1997. Up to 85 people were injured during the attack.
“Everybody thought then it is a coup,” said Mohammad. “But after 9/11 people don’t seem to care anymore.”
The 11 the of September terrorist attacks which leveled the Twin towers in New York in 12 seconds in an explosion that killed 2819 people introduced a new world perception to terrorism.
“If a country as big as the US was hit so no other country is immune and it is not a lack of security.” said Mohammad.
Another threat to Egypt’s security was the bombings in Dahab which killed 23 people and wounded 62 in a triple bomb attack on the beach resort city.
“Even the Dahab bombing did not stop tourists from coming the groups’ only changed locations so if they were going to Sharm El-Sheikh they changed destination to Hurghada for a couple of months.”
However, some tourists believe it is safe to visit a country that was just hit by terrorists.
“Russians don’t seem to care at all and they always increased the number of their groups after any of the pervious bombings” said Mohammad.”Hotels’ rates go down of course and they think it is safer to come right after a bombing because security is on alert.”
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