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Pay and protests in the tourism sector
Published in The Egyptian Gazette on 18 - 08 - 2011

CAIRO - The Minister of Labour Ahmed Hassan el-Borai was concerned when the chairman of the Egyptian Travel Agents Association Hossam el-Shaer complained that mass demonstrations were being organised by local trade unions.
Although el-Shaer attributed his anxieties in this respect to information he received from journalists, his accusation was correct in part. Nor did the minister have any good reason to express displeasure at el-Shaer's concerns.
Organising peaceful demonstrations is one of the chief tasks of trade unions anywhere. These protests are part of pressure-mounting mechanisms on the employer to successfully negotiate better working conditions, pay rises, etc.
The dispute over who should be blamed for the post-Revolution demonstrations broke out during discussions held by the Chairman of the Egyptian Tourism Federation Elhami el-Zayat to discuss the government's pledge to increase an employee's basic salary to LE 700 per month.
The meeting was also attended by the deputy Prime Minister and Minister of Finance Hazem el-Biblawi, the Minister of Tourism Mounir Fakhri Abdel-Nour; and the Chairman of the Central Agency for Organisation and Management Safwat el-Nahas. Taking part in the discussions, as well, were representatives of federation and the Egyptian Hotel Association.
To support his arguments, el-Shaer played a video recording angry employees ransacking a hotel in Hurghada. Panic-stricken tourists fled their rooms as the employees ran amok and destroyed anything in their way.
It was apparent that these violent scenes did not influence the Minister of Labour, who refused to comment or utter any word of disapproval. Nor was the Chairman of the General Syndicate of the Tourist and Hotel Employees more forthcoming than the minister. Neither of these two officials ordered that the saboteurs should be disciplined and held responsible for the huge damage inflicted to the hotel.
These employees should have been harshly reprimanded for undermining the image of their country. Such violent acts must undoubtedly have reduced the image of the Egyptian people in the eyes of the hundreds of tourists, who were witnessing the mayhem. These attackers should not escape with impunity, given that their identities are recorded on the video film.
It was ridiculous that the chairman of the Chairman of the General Syndicate of Tourist and Hotel Employees should calmly shrug his shoulders and attribute the mayhem in the hotel in Hurghada to the absence of a trade union in the facility.
Tourism assets
Starting the discussions, the Minister of Tourism explained that tourism is an exceptional industry. The chairman of the Egyptian Tourism Federation stressed the exceptionality of tourism industry by noting that tourist investors were always using the large profits they obtained for expanding their investment projects.
El-Zayat indicated that profits made by the tourism industry would be spent on the purchase of new tour buses or floating hotels and the development of human resources and skilled labour.
Noura Ali, a Federation's board member noted that employers in tourism sector appreciated a skilled workforce as a precious asset, which should not be laid off when the sector ran into painful crises.
Chaotic earnings situation
Concerning income in tourism sectors, it is an old story that wages awarded to employees in this sector are much higher than salaries offered to colleagues in different economic and industrial activities. For example, when adding drivers' bonuses and allowances to the wages of tour bus drivers, their pay exceeds several thousand Egyptian pounds. Hotel employees and other staff also receive high salaries, which are augmented by 12 per cent commissions.
The Minister of Finance has complained that the wages and salaries situation in Egypt are completely chaotic and it is time to strike a balance between the highest and the lowest earnings in government and public enterprise departments.
12% commission dispute
The 12 per cent commission on service was discussed by a board member of the Egyptian Tourism Federation Ahmed Balbaa.
The employer's share in this commission is 20 per cent and the employee's is 80 per cent. However, disputes are brewing over these percentages.
Adel Omar, chairman of the Chamber of Tourist Establishments, proposed that a joint committee, in which the Ministry of Manpower should be represented, should be formed to end the controversy in this respect.
Sales tax grievance
Hossam el-Shaer complained to the Minister of Finance that tourist activities have to pay the sales tax on the same product several times. The minister appreciated the grievance and promised el-Shaer to examine the issue and end the problem.
Aftermath of the US credit crisis
Should the global tourism industry expect a painful blow in August 2011 in the style of 9/11 in 2008? This question and the following question came to mind after the violent storm associated with the credit rating hit the US economy. Will the US financial crisis have an impact on the new global tourism on the one hand and our local tourism industry on the other?
The president of the World Bank Robert Zoelick has warned member states that the global economy has sounded an alarm bell.
It is known that about 80 per cent of the tourists in Egypt come from the Eurozone. While the world community are debating the next move to find a way out, we in Egypt are busy organising mass demonstrations and protests. Egyptians appear unaware of warnings given by the World Bank's chairman that the new crisis would be worse than the financial meltdown, which hit world markets in 2008.


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