Egypt postpones application of minimum price increase for one night hotel .. and experts comment

Cairo, Egypt (CNN) – The Egyptian government has postponed the implementation of the increase in the minimum payment for accommodation in hotel facilities, scheduled to be implemented early next month, until November 2022, as a result of Russian-Ukrainian influence. war with the revenues of the tourism sector.

The opinions of tourism workers varied between supporting the postponement of the decision in light of the consequences of the war in the global economy, while others believed that the application of the minimum increase contributes to maintaining the quality of service provided to tourists.

The Egyptian government raised, for the first time, the minimum rate for accommodation in hotel facilities to $ 40 for five-star hotels and $ 28 for four-star hotels, and it began to apply in early November and the second increase in minimum values would apply to $ 50 for five-star hotels. Stars, $ 40 for four-star hotels, $ 30 for three-star hotels, $ 20 for two-star hotels and $ 10 for one-star hotels, starting May 1 before being postponed to November 2022.

Sami Suleiman, head of the Taba and Nuweiba Investors Association, believes it would be better to continue to apply the increase of the minimum stay in hotel facilities starting from the beginning of next month, reducing the number of rooms for each hotel facility. instead of lowering the price, because maintaining the overnight price of the hotel in Egypt contributes to providing a good service to tourists, improving the level of performance of employees and thus maintaining the quality of Egyptian tourism, as well as maintaining income from tourism.

Revenues from tourism increased to about $ 5.8 billion during the first half of fiscal year 2021/2022, compared to about $ 1.8 billion during the corresponding fiscal year period, according to a balance of payments performance statement released by the Bank Central. of Egypt.

Suleiman added, in exclusive statements to CNN in Arabic, that there are many alternatives to encourage tourism instead of lowering the hotel overnight price, such as travel visa exemptions, exemptions from entry fees for tourists, or the reduction of flights. all of these are alternatives that contribute to boosting the growth of the number of tourists, noting the need to maintain the price of a one night hotel in Egypt so that hotels can cover operating costs and continue to offer a good level of service.

The Egyptian government has sought to offset the damage to the tourism sector since the Corona virus crisis through several incentives, most notably excluding real estate used in tourism and hospitality from real estate taxes, by delaying the payment of contributions to social security, including part of the employee and the facility, as well as deferring the payment of a percentage of obligations for monthly consumption of electricity, gas and water until December 31 / December 2020, for hotel and tourist facilities, according to Dr. Khaled Al-Anani, Minister. of Tourism and Antiquities.

The head of the Investors Association Taba and Nuweiba confirmed that tourism and hotel companies are trying hard to open new markets for tourism coming to Egypt to compensate for the cessation of Russian and Ukrainian tourism, which represented a large percentage of inbound tourism. Red Sea hotels. , noting that there are no specific markets to focus on, as they are trying to get Companies to support government efforts to attract tourists from all markets.

Egypt has expanded to offer preferential benefits to attract more tourist traffic from different countries, attracting new tourist markets, in addition to providing facilities for tourists to enter Egypt, including approval for the first time to be given foreigners coming to the country an emergency. entry visas to the various ports of entry Provided that entry visas to the countries of Japan, Canada, Australia, New Zealand, the United States, Britain and the Schengen area countries are in their passports and that they are valid and previously used. .

Tourism expert Amr Sedky said the Ministry of Tourism and Antiquities had set a minimum fee for accommodation in hotel facilities to address investor complaints about the hotel-burning phenomenon, but the mechanism for enforcing the decision was unclear. adding that the ministry sent the decision to the Chamber of Tourism Enterprises and set a $ 50 price for the five star hotels, without specifying the quality of the hotels or programs offered to tourists.

And I knew in Egypt the phenomenon of burning prices in hotels, which is that some hotels offer cheap prices in exchange for accommodation to attract the largest number of reservations from travel companies. A minimum price for accommodation to be consulted , according to the improvement of market mechanisms.

Sedky added, in an exclusive statement to CNN in Arabic, that the Ministry of Tourism and Antiquities decided to postpone the implementation of a new minimum increase due to economic conditions worldwide as a result of the consequences of the Russian-Ukrainian war on the global economy. , and consequently the minimal situation became illogical, except that the decision was not clear to the workers.In the tourism sector, he went on to say that the postponement provides an opportunity to formulate a minimum decision, and present it to tourist facilities and tour operators.

Amr Sedky noted that Egypt has been looking for alternative markets for the Russian market since the Russian suspension of flights to Egypt 5 years ago, and Ukraine was one of those alternatives, adding that Egypt is working to diversify the tourism markets it receives from the East. . Asian countries like China, South Korea, Japan as well as India. To stimulate an increase in numbers coming from the European market, in light of the negative impact of economic conditions in European countries, which may push tourists from Europe to visit Egypt for a month longer than staying in his country.

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