IRAQ: Tourism Becomes a Casualty in Egypt

By Cam McGrath Reprint | | Print |

Cam McGrath

CAIRO, Apr 3 2003 (IPS) - The war in Iraq is taking a heavy toll on Egypt’s beleaguered tourism sector, deepening losses the vital industry has suffered over the past two years.

Minister for Tourism Mamdouh El-Beltagui said this week he expects tourism revenues to fall 38 per cent to 2.25 billion dollars as a result of the U.S.-led invasion of Iraq. The jobs of 1.2 million Egyptians in the tourism sector and another 1.4 million in 52 related industries are at stake.

"Everybody is hurting, from the tourist establishment owners to the shoeshine boys," says tourist guide Mohammed Omar.

Tourism was Egypt’s main foreign revenue earner in 2000, a peak year that generated 4.3 billion dollars from 5.4 million tourist visits. The start of the Palestinian Intifada in late 2000 and the September 11 terrorist attacks brought significant revenue losses as Western tourists cancelled travel plans to the region.

Tourism workers say the U.S.-led war on Iraq could deal a death blow to the industry if it drags on much longer.

"We’ve been suffering for years because of the problems of our neighbours," says Mohammed Ahmed, whose alabaster factory caters solely to tourists. "Every time we think it will get better something happens and it gets worse. Tourism is finished."

In Khan Al-Khalili, Cairo’s main tourist bazaar, shopkeepers bemoan the loss of customers. Haggling is more ferocious than ever as the rift grows between buyer expectations and seller realities. Shoppers expect the loss of tourist traffic to bring prices down, but sellers are looking for higher prices to offset the losses sustained over two years of slow business.

The national airline is largely grounded. The reduction of incoming tourists has forced EgyptAir to reduce service to European capitals and temporarily suspend flights to smaller cities. The airline has also scaled back domestic flights.

"The aviation sector is expected to lose 25-40 per cent of its revenue," a state-run newspaper quoted a senior aviation official as saying. "The amount of losses will depend on how long the war lasts. This will include losses to the national carrier, the airports and other related sectors."

The commencement of hostilities in Iraq did not lead to immediate cancellation of hotel bookings, as was the case following September 11. The long build-up to the war gave tourists ample time to decide whether to risk travel to the Middle East. Some hotels are still managing to hold their ground in occupancy rates, but the lack of new reservations worries them.

"Reservations are not going well at all," says Ann Schmidt, guest relations manager at Le Meridien in Luxor, a tourist city famous for its ancient Egyptian temples and tombs. "We’re at 40 per cent occupancy."

Few hotels can boast such high occupancy rates. Many are vacant, their idle skeleton crews glued to war coverage on television screens in the foyers. Others have closed down until the situation improves.

"Normally we’re 70 per cent booked at this time of year, which is peak season," says Shady Ibrahim, assistant manager of the five-star Helnan Shepheard Hotel in Cairo. "Now we’re down to 10 per cent, which is lower than after September 11."

In the weeks before the war, the Ministry of Tourism launched a campaign to promote Egypt’s Red Sea beach resorts. The thinking behind the campaign was to add sunbathing and water sports for tourists planning a once-in-a-lifetime trip to see Egypt’s cultural treasures such as pyramids, temples and tombs.

The Red Sea resorts of Sharm El-Sheikh and Hurghada saw moderate business before the conflict, but now holiday-makers are not going there either. "Our phones never ring anymore," says a hotel desk clerk in Hurghada.

Tourism officials say they have written off cultural tourism at least until the war ends. "I’m far from thinking that we can have an interest right now in cultural tourism," admits Elhamy El-Zayat, chairman of the Egyptian Federation of Tourism Chambers (EFTC).

Egypt boasts an impeccable security record for the past five years, but it is haunted by the spectre of its past. Many tourists recall the 1997 massacre of 58 tourists at a temple in Luxor by Muslim militants seeking to topple the government. They fear the war in Iraq could provoke more attacks on foreigners. Media images of angry Arab streets have reinforced this view.

El-Zayat says cultural tourism has gone into hibernation. The strategy now is to establish and maintain an interest in the country’s world famous antiquities.

He speaks of an Egyptian exhibition currently touring U.S. cities that includes 141 select pieces from Cairo’s famous Egyptian Museum, as well as a facsimile of the tomb of Thutmose III, the energetic 18th Dynasty pharaoh who ruled 3,500 years ago. Response to the exhibition has been overwhelming, though that has not translated into holiday bookings.

"These are future visitors to Egypt," he says. "Maybe not for today, but tomorrow."