Published On:Tuesday, 25 October 2016
Posted by ARAB GAZETTE. weekly newspaper issued on Sunday morning - London, UNITED KINGDOMمؤسسة الوطن العربى الإعلامية - لندن ، المملكة المتحدة . WA MEDIA FOUNDATION - LONDON, UK
Egypt’s Red Sea gem: Sharm El-Sheikh grappling with tourism decline
ARAB GAZETTE - CAIRO ..
The number of tourists visiting Egypt declined significantly
following the crash of the Russian aeroplane in Sinai in late October
2015, which had a heavy negative impact on the Red Sea resort city of
Sharm El-Sheikh.
The city, once the country’s tourism gem on Sinai’s Red Sea coast,
has had to adjust to a significantly lower number of visitors, with many
hotels shutting their doors and employees seeing a significant cut to
their salaries.
The number of tourists coming to Egypt declined by 52% in the first
half of the year, with a total of 2.3m tourists visiting compared to
4.8m tourists in the same period last year.
Daily News Egypt took a tour of Sharm El-Sheikh to observe the state
of tourism in the resort city 10 months after the Russian aeroplane
crash. To understand the status of the city, Daily News Egypt spoke to
tourism sector employees, hotels, and shopkeepers to get a glimpse at
the repercussions of dwindling tourism numbers.
Hotel employees: income declines as fewer tourists opt for
Sharm El-Sheikh as a vacation
spot
The Russian aeroplane crash led to a severe decline in the
number of foreign tourists visiting Sharm El-Sheikh, which pushed some
hotels to lay off some of their employees. As a direct result, the 12%
service charge that goes to hotel workers decreased and monthly tips
declined by more than 50%.
Reception supervisor Eid Ibrahim said that the majority of hotels in
Sharm El-Sheikh looked to lower their expenses by 50% under the losses
in revenues they incurred in recent months.
He noted that all hotel departments are currently operating with just
half the number of staff members, explaining that the average basic
salary in the reception department starts at EGP 500 and goes up to EGP
900. Ibrahim noted that the 12% service charge currently ranges from 50
to 55 piasters per employee.
Ibrahim explained that the salaries of those who make EGP 500 per
month reach approximately EGP 750 after the service charge is added. The
12% service charge can occasionally reach up to EGP 1, but some hotels
do not apply the earned service charge to salaries for months, according
to Ibrahim.
Cleaner Ahmed El Sayyed said that last year, the value of tips ranged
between EGP 5,000 and EGP 8,000 per month, noting that tourism in the
city is mostly dependent on foreign guests.
Restaurant manager Mohamed Hanafy said that the salaries of new
employees range between EGP 400 and EGP 600, explaining that the 12%
service charge last year varied between EGP 1.5 and EGP 2.
Hanafy believes that some hotels resorted to decreasing the number of
employees as an attempt to decrease expenses, while some other hotels
offered different service jobs when the local tourism rate started to
increase. However, there was not a high demand for these jobs because of
the low salaries offered.
Cleaner Ramy Hasan said that the tips he used to make from foreign
guests can go from $5 to $20 daily; however, tips no longer reach those
heights. Currently, the average daily tip does not exceed EGP 20. Hasan
added that some workers have resorted to working extra shifts to meet
their financial needs.
