Sources in the tourism sector said EgyptAir receives a 70% reduction of on-ground services fees at Marsa Alam airport, hindering other airline companies from conducting cheap flights to the region.
According to the sources, the high price of trips to the region is one of the main reasons why Egyptians refrain from visiting resorts and hotels in Marsa Alam.
“Despite the incentives enjoyed by EgyptAir in the region from the company running the airport, EgyptAir still does not offer incentives for Egyptian travellers to the region despite the losses the company announces every year,” said an official in the Tourism Investors Association (TIA) in the Red Sea.
He said that the main reason for the decline in hotel occupancy rates now is the high price of tickets for Egyptians.
“Egyptians cannot be expected to visit the region if ticket prices reach EGP 2,000,” said the sources. He added that, at these rates, Egyptians would rather visit other areas in Egypt or abroad.
The total capacity of hotels operating in Marsa Alam is approximately 10,000 rooms, with investments of more than EGP 10bn.
President of the Tourism Committee at the Egyptian Businessmen’s Association (EBA) Ahmed Balbaa said the influx of tourists from Europe has declined, especially after the Russian plane crash in October 2015.
Reducing prices for Egyptians will be a major catalyst for an occupancy increase in the region, Balbaa added.
According to Tarek Shalaby, vice president of TIA in Marsa Alam, the occupancy rate in the region ranges between 10% and 20%.
More than 20 hotels in the area closed their doors during the recent period, due to the decline in guests.
EgyptAir hinders local tourism to Marsa Alam: sources
