Egypt tourism ponders effect of Muslim Brotherhood’s ascent

Egypt tourism ponders effect of Muslim Brotherhood’s ascent

By Michelle Baran

KarnakEgyptOpsThe Muslim Brotherhood’s significant gains in the final phase of Egypt’s parliamentary elections this week left many in the industry anxious about how the group’s sectarian impulses would affect the country’s social mores and, as a result, its allure as a tourism destination.

Last month, news reports surfaced of a Muslim Brotherhood candidate’s vision for tourism in which tourists would not be allowed to drink alcohol or wear bikinis.

While it was an offhand remark, the comments brought to light questions about how tourism policy might be altered by a sectarian government in a country that will rely heavily on travel and tourism to push economic recovery following debilitating setbacks in 2011.

“The tourism industry in Egypt, directly and indirectly, is responsible for one in eight jobs,” said Amr Badr, managing director of Egypt and the Middle East for Abercrombie & Kent.

“It is easy for candidates to make these statements on a theoretical basis, but if there are attempts to change legislation and regulations, they will certainly be met with resistance, as such suggestions are simply not realistic for a country in which tourism is such a fundamental pillar of the economy.”

Egypt’s tourist industry took a major hit in 2011 in the wake of the at-times violent and deadly revolution that began Jan. 25, which resulted in the ouster of longtime president Hosni Mubarak.

The country welcomed about 54% fewer U.S. tourists last year than in 2010, Mohamed Hegazy, acting director of the Egyptian Tourist Authority in New York, said in a phone interview from Cairo last week.

Hegazy pointed to nearby Turkey as an example of a Muslim country that is able to maintain a successful tourism industry.

Asked if the likely dominance of the Muslim Brotherhood’s Freedom and Justice Party in Egypt’s newly forming government would have an impact on tourism, Hegazy responded, “I don’t think so, because business is business, and the economy is the economy. Tourism is one of the main factors in the Egypt economy. It represents 11.5% of the Egyptian income. So, I don’t think so.”

Meanwhile, Egypt’s once-thriving tourism industry is attempting to rebuild itself in 2012. But the ongoing political uncertainty as Egyptians head to the polls to elect a new government — a process that will last at least into June, when the presidential elections are slated to take place — continues to make the destination a difficult sell for some.

“Interest in travel to Egypt continues to be disappointing with the backdrop of news in the media,” said Jerre Fuqua, president of Travcoa. “However, travelers returning from Egypt report high regard for the destination and their feelings of safety.”

Abercrombie & Kent, meanwhile, is starting to see a return to pre-2011 booking patterns.

“Last week, Abercrombie & Kent passenger numbers for 2012 exceeded the forward bookings we had at this time last year for travel in 2011,” said Pamela Lassers, director of media relations for Abercrombie & Kent USA. “We are continuing to add guaranteed small-group escorted departures to accommodate the growing interest in travel to Egypt.”

New TripAdvisor complaint threatens review syndication

New TripAdvisor complaint threatens review syndication

Travel giant TripAdvisor is facing a second and potentially more serious complaint to theAdvertising Standards Authority that threatens to outlaw all third parties using its reviews to market their products.

Travolution can reveal online reputation management crusader Kwikchex has sparked a second probe by the UK advertising watchdog following a first highly publicised complaint.

The first complaint questioned the veracity of TripAdvisor’s reviews but the second claims existing advertising rules mean no reviews can be used to market product if the author’s identity cannot be verified.

An increasing number of hotel, travel agency and tour operator websites pull in TripAdvisor content, or link to it to help promote their product and improve their search engine ranking.

The Kwikchex case cites rules in the Committee of Advertising Practice (CAP) non-broadcast code that states marketers must be able to show a review’s authenticity by proving it was made by an identifiable and potentially contactable person.

An ASA spokesman could not confirm the second complaint had been lodged, although this is understood to have been purely a procedural issue, a detailed submission having been sent on November 2 but not yet logged.

Kwikchex co-founder Chris Emmins said: “This is potentially much bigger than our first complaint. It’s absolutely apparent that reviews are not being verified and that they are being used for promotional purposes. We think that verifying testimonials is key to fulfilling the requirements of the CAP code.”

An extract from the code on testimonials and endorsements states: “Marketers must hold documentary evidence that a testimonial or endorsement used in a marketing communication is genuine, unless it is obviously fictitious, and hold contact details for the person who, or organisation that, gives it.”

The code does allow testimonials to be used by third parties from a “published source” without permission of the author, however this places the onus back on the originator of the review to authenticate it and Kwikchex believes TripAdvisor’s current procedures fail to do this.

In the submission Kwikchex makes reference to a number of cases in which it believes the CAP code is being breached. These include use of TripAdvisor content on hotel website Accor, Thomson’s tour operator site and tourism body VisitLondon.

Separately to the challenges to TripAdvisor, the UK government is working with a number of companies on a charter for online reviews to promote best practice led by Ed Davey MP, minister for consumer affairs for the Department for Business, Skills and Innovation.

Andrew Mabbutt, managing director of Feefo, an online review service and one of the firms working with the government on the charter, said:

“The ASA’s view on use of reviews that can’t be authenticated will be awaited with particular interest in the travel sector where TripAdvisor reviews are widely used for marketing purposes.

“We feel it is vitally important that any reviews used are at the very least checkable in terms of the person who posted them and if they are not then they either be flagged up as such or not made public until they are.

“This issue is becoming more and more high profile and it is important companies, review sites and regulators alike get to grips with it before there is widespread loss of public confidence in what can, and should be, a powerful marketing tool.”

Tripadvisor said it could not comment on the second Kwikchex complaint as the ASA had not confirmed it was investigating it.

The ASA confirmed to Travolution that the investigation into the first complaint was nearing a close although the recommendations had not yet been put to council and it could be a few weeks before any decision is made public.

Monarch denies previous refinancing ‘failed’

Monarch denies previous refinancing ‘failed’

By Ian Taylor |  Nov 03, 2011 12:30PM GMT

The Monarch Group has denied a £75-million refinancing of its loss-making airline was necessary because a previous financial restructure had failed.

Monarch executive chairman Iain Rawlinson said: “The 2009 refinancing was a success. It allowed the business to return to profitability last year.”

The group announced the £75 million cash injection from its controlling shareholders, the Swiss-based Mantegazza family, on Thursday. The move followed a £45-million refinancing two years ago.

Rawlinson reported a £45 million loss for the year to October 31. But he told Travel Weekly: “What we are looking at here is a response to a long-term re-shaping of the market.

“We made a decision in May this year, when oil prices had been $110 a barrel for several months, that high oil prices were here to stay and we had to reshape the business. That was the priority.

“We spent May to July developing a plan for a changed, higher-price environment and that is what the shareholders have accepted. We are taking the initiative to ensure the business can operate successfully in a changed environment.”

Rawlinson said he did not expect market conditions to improve next year and consumers would have to adjust to paying higher fares.

He said: “It is inevitable the cost of flying is going to rise. Fuel costs have increased on average 25%-30% this year – although I’m not suggesting all that will be passed through to consumers. It is incumbent on all of us in the industry to run our businesses more efficiently.”

Rawlinson conceded: “We made a substantial loss [on the current year]. We are very cautious about 2012. But prospects for recovery in 2013 are better. We expect the market in 2013-14 should show some signs of recovery, based on a hopeful return of consumer confidence.”

He attributed the losses for 2010-11 solely to Monarch Airlines, reporting tour operator Cosmos and the group’s aviation engineering business, Monarch Aircraft Engineering, had been profitable.