Egyptian experts today warned of consequences due to slow development in Sinai and demanded that officials work on developing tourism to provide job opportunities to native Bedouins. They also demanded that Egyptian officials resolve conflicts with investors. “Violence in South Sinai will not affect the occupancy rates of hotels in Taba and Nuweiba,” said Osama al-Ashry, an official in the Egyptian Ministry of Tourism. “Hotels in these cities were occupied 60 to 65 percent on Sunday, which is a strong percentage for the time of year.” “Reservations have not been canceled despite the management of the crisis so far,” said Ahmed Balaba, head of the Tourism Committee of Businessmen Assembly. Balaba underlined that occupancy rates at hotels are good especially considering that the industry is still reeling in the aftermath of the January 25 Revolution. He also warned about falling prices, a phenomenon that could lead to hotel bankruptcies. Tourism still could be affected by the incidents recently at the Israeli—Egyptian border, Balaba said, adding that tourism in Europe might be a good indicator of future tourism in Egypt. Balaba also criticized the Egyptian government for its slowness in developing Sinai, particularly its sluggish approval of the Sinai Development Council. He also demanded the formation of an official authority for investment in Sinai. “The effects of recent tensions at the Israeli—Egyptian border will dramatically increase if tensions escalate,” said Hossam al-Shaer, head of the Travel Agencies Chamber. He also urged Sinai development with the help of Bedouins. On the other hand, “the occupancy rate in Taba's hotels was strongly affected by recent tensions,” said Samir Mohamed, a member of Taba Investor Assembly. He warned of further reprecussions if the tension isn't resolved.
