Tourism sector in the Red Sea has been deteriorating since the revolution in 2011, as a result of an absence in security and civil unrest. Tourism experts believe stable security in Egypt is a primary factor for restoration of normal rates of European tourists in the Red Sea resorts, and call for arranging an innovative international campaign to promote tourism at international forums and present Egypt’s tourism potentials in a more attractive manner.

Tourism sector in the Red Sea has been deteriorating since the revolution in 2011, as a result of an absence in security and civil unrest. Tourism experts believe stable security in Egypt is a primary factor for restoration of normal rates of European tourists in the Red Sea resorts, and call for arranging an innovative international campaign to promote tourism at international forums and present Egypt’s tourism potentials in a more attractive manner.

Occupancy rates during the last two high seasons declined with a slight increase for 5-star hotels from 50% to 60% in the early months of this year, while smaller hotels still suffer a sharp decline in occupancy rates, leading to discharging a large number of employees. In addition, the Cabinet’s resolution no. 77 – imposing a 1% tax on any bill paid by guests in hotels and tourist facilities, which used to be deposited with the Services and Development Fund, a major financial resource of the Red Sea Governorate – has been deemed illegal by the State Council Fatwa Department and has consequently been revoked.

The Red Sea Governorate Secretary General, Major General Saadeddine Amin, says the 1% tax has been the most important financial resource for the Governorate which mainly depends on quarries and tourism that fund projects of infrastructure, facilities and roads. He claims that without collecting this tax, several projects have been suspended due to budget shortfalls, which has prompted the Governorate to ask for budget increase during the Board of Governors meeting a week ago.

The recession affecting the Red Sea tourism sector has been negatively reflected on the labor sector since many hotels have discharged a number of their employees due to low occupancy rates, lasting for two years in a row, which has contributed to increased number of the unemployed. Further, hotels have been compelled to reduce their booking rates in a bid to attract any other type of tourists, but the discounts – reaching 50% in some hotels – attracted much less affluent tourists who have no significant impact on the Governorate’s resources, as some tourism workers describe.

Muhammad Ali, a worker who has been laid off or more accurately given an open leave until the situation improves, says given declined tourism a number of hotels have shut down, laying off a large number of their staff. The inflow of little-budget tourists, says Ai, has negatively reflected on bazaars since those tourists come to hotels to enjoy food, drinks, and picnicking only.

Ashraf Sayed, a hotel worker, says tourism deterioration has resulted in laying off a large number of hotels’ employees, and reducing the 12% percentage allocated to hotels workers as a consequence of declining occupancy rates.

Imad Ali, a bazaar owner at the tourist shopping district, says declining tourism has significantly affected businesses, which has resulted in discharging around two thirds of workers in these touristic bazaars, and that local tourists are only interested in sightseeing.

Secretary of Chamber of Tourism Major General Hatem Munir says rates of tourist groups will be on the rise once again when security is restored and when sit-ins, demonstrations, and denominational demands that have swept Egypt since the revolution and provided foreigners with the impression that Egypt lacks stability end.

He called upon the Ministry of Tourism (MoT) to develop a comprehensive and innovative plan to promote tourism in international forums, in addition to invite international companies to visit Egypt and improve hotel workers’ performance to maintain Egypt’s competitive levels. Munir also demanded that MoT and the Egyptian Tourism Federation prepare special training programs for rehabilitating and improving the performance of workers and service providers at hotels and tourist resorts.

Adviser of the Chamber of Travel Agencies, Majid Qady, says stability and security are prerequisites to attract tourists to Egypt, stressing that demonstrations and protests witnessed in Hurghada in the past months have affected tourism. He suggests the need to change and amend tourism system in Egypt and its traditional approach of participating in tourism exhibitions and conferences.

“Over 90 countries participate in these conferences where they compete for providing an attractive presentation about their tourism potentials, which Egypt does not do. I suggest concentrating on the countries from which we receive tourist groups, through hosting them, holding press conferences, and arranging trips for them in the important tourist areas to acquaint them with tourism in Egypt. This will consequently help push tourism business forward and contribute to reinstating the prosperous times this industry achieved in the past,” Qady explained.