Unrest threatens fragile tourism industry
CAIRO – At Egypt’s pyramids, the desperation of vendors to sell can be a little frightening for some tourists.
Young men descend on any car with foreigners in it blocks before it reaches the more than 4,500 year-old Wonder of the World. They bang on car doors and hoods, some waving the sticks and whips they use for driving camels, demanding the tourists come to their shop or ride their camel or just give money.
In the southern city of Aswan, tour operator Ashraf Ibrahim was recently taking a group to a historic mosque when a mob of angry horse carriage drivers trapped them inside, trying to force them to take rides. The drivers told Ibrahim to steer business their way in the future or else they’d burn his tourist buses, he said.
Egypt’s touts have always been aggressive — but they’re more desperate than ever after nearly two years of devastation in the tourism industry, a pillar of the economy.
December, traditionally the start of Egypt’s peak season, has brought new pain. Many foreigners stayed away because of the televised scenes of protests and clashes on the streets of Cairo in the battle over a controversial constitution.
Arrivals this month were down 40 per cent from November, airport officials say.
Tourism workers have little hope that things will get better now that the constitution came into effect this week after a nationwide referendum. The power struggle between Islamist President Mohammed Morsi and the opposition threatens to erupt at any time into more unrest in the streets.
More long term, many in the industry worry ruling Islamists will start making changes like banning alcohol or swimsuits on beaches that they fear will drive tourists away.
“Nobody can plan anything because one day you find that everything might be OK and another that everything is lost. You can’t even take a right decision or plan for the next month,” said Magda Fawzi, head of Sabena Management.
She’s thinking of shutting down her company, which runs two hotels in the Red Sea resort town of Sharm el-Sheikh and four luxury cruise boats on the Nile between the ancient cities of Luxor and Aswan. In one hotel, only 10 of 300 rooms are booked, and only one of her ships is operating, she said. She has already downsized from 850 employees before the revolution to 500.
Tourism, one of Egypt’s biggest foreign currency earners, was gutted by the turmoil of last year’s 18-day uprising that toppled autocrat Hosni Mubarak. Scared off by the upheaval, the number of tourists fell to 9.8 million in 2011 from 14.7 million the year before, and revenues plunged 30 per cent to $8.8 billion.
This year, the industry struggled back. By the end of September, 8.1 million tourists had come, injecting $10 billion into the economy. The number for the full year is likely to surpass 2011 but is still considerably down from 2010.
For the public, it has meant a drying up of income, given that tourism provided direct or indirect employment to one in eight Egyptians in 2010, government figures show.
Poverty swelled at the country’s fastest rate in Luxor province, highly dependent on visitors to its temples and the tombs of King Tutankamun and other pharaohs. In 2011, 39 per cent of its population lived on less than $1 a day, compared to 18 per cent in 2009, according to government figures.
For the government, the fall in tourism and foreign investment since the revolution has worsened a debt crisis and forced talks with the International Monetary Fund over a $4.8 billion loan.