1 - 7 March 2001
Issue No.523
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Al-Ahram Weekly On-line 1 - 7 March 2001 Issue No.523 |
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| Published in Cairo by AL-AHRAM established in 1875 | Current issue | Previous issue | Site map | ||
Tourism's challenge
Tourism is Egypt's main provider of employment, accounting for two million jobs representing 12.6 per cent of total employment.
Minister of Tourism Mamdouh El-Beltagui, speaking to members of the American Chamber of Commerce in Cairo.
However, there are several challenges facing the domestic tourism sector. These include the growing power of global market forces.
Another challenge is the increasing tendency towards mergers and consolidation. This is happening among tour operators and travel agencies, hotel groups and resort companies, airlines, restaurants and entertainment companies.
These global mergers are a potential threat to domestic hotel companies and travel agencies since they control marketing and distribution. These could result in long-term contracts at low prices or the acquisition of local firms (by global companies). Therefore, we in Egypt need to have mergers between small-sized companies and to form strategic alliances so as to face the transnationals proliferating in the tourism industry.
There is, as well, the increasing influence wielded by electronic technology. There are now atlases on CD-ROMs, Internet brokers offering discounts on hotel rooms on Web sites and last-minute deals offered via the Internet. In Egypt, we still need to disseminate and develop use of this kind of technology.
While maintaining traditional markets, we must also target new ones. Niche marketing can increase the number of tourists visiting Egypt, the number of tourist nights, as well as generate higher tourist spending and stronger economic linkages.
In this respect, the American Chamber of Commerce can play a role in selecting market segments in the United States, which will respond to Egypt's promotional campaigns. It can promote [Egypt's tourism] in a cost effective manner through direct contacts with American companies and associations. It can also encourage US private investment in tourism, especially through joint ventures with Egyptian partners.
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