In Cairo and Sharm El-Sheikh tour operators met this week to discuss ways of boosting tourism in the face of the international financial crisis, Amirah Ibrahim reports A ministerial decree extending exemptions from landing and departure fees for an additional 12 months, to include airlines operating from Egyptian airports for the first time, has been issued two months ago. The move is part of ongoing attempts to boost tourism in the face of a 12.8 per cent decline in the number of visitors coming to Egypt. In recent weeks both the Airports Authority and the national carrier EgyptAir have held workshops, in cooperation with European airlines, to discuss ways of helping tourism, badly affected by the global credit crunch. More than 300 European tour operators and travel agents gathered in Cairo and Sharm El-Sheikh for seminars organised by the national carrier and the Holding company for Airports and Air Navigation. They included delegations from the US, Spain, Italy and the Netherlands who visited the national carrier's base facilities in Cairo and Cairo International Airport's new terminal, TB3. "Our partners in European markets suggest there may well be a shortage of seats to Egypt next summer," says Ilhami El-Zayat, a board member of the Holding Company for Airports and Air Navigation. "The global crisis has seen many European airlines brought to the brink of bankruptcy. Others have cut flights and closed routes. This is a major obstacle in the way of the travel business to the Middle East and Egypt." "In the UK at least one major airline, XL, has been forced to shut down, cancelling a wide operation in Middle East countries." Responding to a request by European travel agents, Egypt's aviation authorities have agreed to allow an expansion in capacity by airlines seeking to add more seats to flights. From 2 April BMI airlines, a star alliance member and the second biggest airline operating from Heathrow airport, will be increasing capacity and improving in-flight service with the introduction of the wide-bodied Airbus A330 on the Cairo-London route. More than 150 tour operators and travel agents attended EgyptAir's four-day workshop in Sharm El-Sheikh. "The crisis will damage not only tourism but the whole air travel business. We are acting to try and avoid a drastic deterioration in the European market," explained Ashraf Rateb, EgyptAir Amsterdam area manager. The Dutch market exported 250,000 tourists to Egypt last year. European operators believe more attractive offers could help increase the number of travellers to the Middle East. "Why not take the chance and promote Egypt with cheaper offers, at least for the duration of the crisis?" asks Rateb. During the workshop discussions travel agents and tour operator agreed that their businesses will face a serious slowdown in the foreseeable future. "Egypt should adopt new and creative solutions, creating more varied programmes using smaller hotels and offering specially tailored programmes to clients," says Cynthia Ashof, managing director of the Netherlands-based Treasury Travel. "Desert safari trips, for instance, are in demand, though the product needs some work in Egypt." The workshops produced several recommendations, not least the demand that governments continue to invest in travel infrastructure and human resources development. An increase in marketing budgets and the creation of more diverse travel programmes were also suggested. "Officials must avoid imposing any policies that restrict movement. This includes airlines, currently reeling under a range of fees and taxes all the time," says Rick Wouters, product manager of an online booking business. "Now that EgyptAir has joined the Star Alliance and recovered its image in the European market it is in a position to help Egypt overcome the crisis if it is allowed to work with fewer obstacles."
