11 - 17 January 2001
Issue No.516
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Al-Ahram Weekly On-line 11 - 17 January 2001 Issue No.516 |
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New strategies for tourism
In 2000, tourism did not achieve the growth that it did the previous year. This is mainly due to the Al-Aqsa Intifada, which diminished tourism from Israel and joint-tourism between Egypt, Israel and Jordan. Another reason was the euro's decline against the US dollar, since 75 per cent of tourists coming to Egypt are from Europe.
Whatever the ups and downs, pricing policies in the tourism sector have lacked strategy and consistency.
Some members of the sector suggested that travel services should be quoted in a variety of currencies such as the euro for the common market, the yen for Japan and the dollar for the United States, etc.
This will not be a solution to the problem caused by a decline in the value of the euro vis-à-vis the dollar since it may create problems in billings even though it offers the possibility of cross-border sales -- notwithstanding the challenges inherent in the fact that each nationality will have a different rate.
Accordingly, the only solution feasible for the time being to decrease the impact of changes in the exchange rates vis-à-vis the dollar, is for all suppliers to quote rates in Egyptian pounds and obtain payment in foreign transferable currency at the rate of exchange prevailing on the day the transfer of funds is effected.
Moreover, all suppliers of tourist services should have a clear strategy based on proper marketing studies for pricing their services -- bearing in mind that any increase should be related to additional services offered to the customers and inflation.
Customers today are bombarded with offers from many destinations, and historical sites are no longer the only basis for choosing a destination. Elhamy El-Zayat, president of the Egyptian Travel Agents Association and chairman and CEO of Emeco Travel.
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