The General Syndicate for Tourism and Hotels requested a meeting with Minister of Manpower and Emigration Nahed Ashri in order to discuss an annual allowance of 7% for workers this year, according to Syndicate Chairman Bassem Halaka.
Tourism and manufacturing coalitions have rejected allotting the annual allowance for workers in the private sector this year due to decreasing economic activity.
According to the Satellite Accounts Unit of the Ministry of Tourism, touristic activity in Egypt has declined by 13% during the first 8 months of this year, compared to the same period last year.
Halaka said that workers in the tourism sector have not had their 7% allowance agreed by the government for local and private sector workers as a consequence of this year’s crisis in the sector. However, he added that the tourism industry is showing signs of improvement, which makes it easier to give allowances to workers.
According to the Ministry of Tourism, tourism traffic increased to around 995,000 tourists in August, with more than 90% growth compared to the same period last year.
Halaka stated that the syndicate will demand that hotels pay at least part of the allowance in case it is claimed that the current situation does not allow for an allowance to be paid, especially since some hotels in Egypt already do so.
Since the 25January Revolution, Egypt’s political situation has negatively affected tourism, with a loss of more than 50% of income compared to 2010. Halaka said that tourism workers have endured quite a bit in light of this situation, and employers need to realise this, as 7% is not a matter of a million dollars.
Wagdi Al-Kerdany, a board member of the Egyptian Tourism Federation, stated that the Federation has demanded EGP 100m in aid from the emergency fund affiliated with the Ministry of Manpower and Emigration.
As stated by the Satellite Accounts Unit of the Ministry of Tourism, tourism sector workers number 2.8 million, 1.8 million of which work directly in the sector while the rest work indirectly.