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Turmoil In Egypt Affects Tourism

Egypt unrest sends tourist industry workers on unpaid leave

Feb 06, 2011

Tourist resorts, hotels and tourism companies in Red Sea area granted 90% of workers open-ended periods of leave without pay after tourism sharply declined amid ongoing nationwide unrest.

However, other tourist resorts decided to keep security and gardening workers, but without paying bonuses. The number of workers in the Red Sea’s hotel sector is estimated at 400,000.

As a number of foreign airlines closed their branches at Hurghada airport, workers were given open-ended periods of leave until situation is settled and tourist flights are resumed.

Occupancy rates at hotels and tourist resorts at Hurghada, Marsa Alam and al-Qoseir reached failed to surpass 15 in 80 percent of the resorts, the lowest rate recorded in recent years.

According to a report issued by the chamber of hotels, occupancy rates are expected to approach zero by the middle of next week as tourist flights from Europe and Russia stop completely and the rest of Egypt’s tourists leave on Monday.

Ali Shaaban, the head of a tourist company in Hurghada, said European and Russian tourist companies began substituting Turkey, Morocco and Canary islands for Egypt’s tourist market. Over 250,000 tourists canceled their flights to the Red Sea in the last ten days.

Egypt unrest sends tourist industry workers on unpaid leave
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