Effects of the Egyptian Revolution, Coup and Corruption on Tourism - Assignment Example

Effects of the Egyptian Revolution, Coup and Corruption on Tourism (Uses The Economist Magazine Style) Samson Don Xavier Introduction Egypt is one of the world’s most popular tourist destinations with attractions including the Great Pyramids, the Sphinx, the Cairo Museum, and sandy beaches. However, the Egyptian revolution in 2011, which was followed by a military coup, disrupted tourism in the country4. Several countries advised their citizens to cancel their scheduled plans to visit Egypt and recalled those already within the country following the revolution. (Source: Hutchinson, 2014) Civil unrest and political instability has affected tourism in a number of countries including China, Fiji, Israel and Mexico24. China experienced widespread student protests in Beijing on June 4 1989, because of the unrest, the population of tourists in hotels was low and travel to Beijing was highly restricted. A double military coup occurred in Fiji in 1987, other countries responded by issuing travel advisories to their citizens. Israel has for a long time been involved in military warfare making it inhospitable for tourists. Therefore, the case in Egypt is not different, the revolution, the coup and prevalent corruption have had diverse effects in the country. The revolution occurred in 2011, followed by the coup two years later in 2013. The Egyptian Revolution The Egyptian revolution was marked by mass protests on the streets. Clashes turned bloody resulting in the death of at least 300 people23. Egyptian nationals were pushing for the overthrow of President Hosni Mubarak. Grievances included political issues; economic strains, unemployment, inflation and injustice. The demands were finally met on February, 11th 2011 when President Mubarak put an end to his thirty year old regime by stepping down11. (Source: The Economist, 2013) (Source: The Economist, 2013) The Egyptian Coup The July 2013 coup came immediately after widespread protests by Egyptian citizens against President Mohamed Morsi. People demanded that Morsi be removed from power, his term in office had lacked success. Coups have never been peaceful. As a result, forceful intergovernmental transition would bring all economic activity to a standstill26. (Source: The Economist, 2013) The State of Tourism One Year after the Coup Contrary to the expectations of many Egyptians, the coup led to more problems. From the time of Morsi’s overthrow from power, Egyptians were left fighting for the formation of a legitimate government that would replace military rule. Public servants have been involved in constant revolts over the fact that the government has failed to fulfill its minimum wage promises1. These facts caused negative effects on the country’s revenue-generating sectors, a major constituent being the tourism industry. Inflation became a major economic problem and the rate of unemployment increased during Mubarak’s and Morsi’s governance thus intensifying the revolts28. (Source: Kingsley, 2014) Tourism depends extensively on transport and communication. However, the protest during the workers’ revolts after the coup hindered transport8. Protestors filled major highways rendering them impassable. As a result, tourists could not move within the country efficiently. Tourists use public transport services to reach their different areas of interest22. Protestors mounted roadblocks across cities, making it extremely difficult for tourists to travel especially within Cairo. (Source: The Economist, 2013) Foreign companies including those in the tourism industry were forced to suspend their activities in Egypt as a result of the security threats. Withdrawal of companies from Egypt and the subsequent fall in the levels of tourism had adverse effects on the country’s GDP. Tourism requires investment of substantial amounts of capital for the industry to be sustained. However, Egypt’s weakened economy could not adequately cater for the expenses incurred in sustaining tourism. Consequently, the quality of tourist service provision was compromised resulting in a lower tourist count in the country6. Communication is also vital to the tourism industry. On January 28th 2011, disruptions on mobile phone connection services were reported. The communication services offered by social media platforms like twitter and facebook were also disrupted. These events made it difficult for tourists to communicate with their families at home or seek assistance from their embassy in Egypt. The worsening of the situation caused a major communication breakdown in the tourism sector consequently leading to its deterioration18. The aftermath of the revolution and the coup is characterized by continuous attacks by extremists in the main Egyptian cities. Tourist attraction sites are potential targets for the extremist groups. Areas prone to attack include the Egyptian Governorate called North Sinai and areas around the Taba-Suez Road. Such areas have lost a lot of international tourists. Imposition of curfews in the North Sinai Governorate is working against tourist activities and excursions in the region2. The State of Tourism Five Years after the Coup A major blow to tourism in Egypt was the international travel advisories leveled against it by other nations that were advocating for the safety of their citizens. For instance, the UK government advised its citizens to cancel their travel plans to Egypt and stipulated that Egypt was filled with life threatening terror activities and mass protests. According to the UK government, those traveling to Egypt are prone to risks of violent attacks and sexual assault as NGOs had reported at least one hundred sexual assault cases against women during the demonstrations between June and July 201314. British Nationals in Egypt were advised to avoid the protest zones and to always keep the documents that prove that they are British Nationals at all times. The Australian government has continued to warn its nationals against travelling to Egypt. The latest travel advisory by the government was issued in April, 17th 20157. What this implies is that the world is still not certain of the security situation in Egypt long after the military coup. If travel advisories are still being issued against Egypt, the tourism sector is experiencing long term problems as a result of the low tourist count that generates low income15. Australia has singled out some cities in Egypt for example Cairo, Ismailia and Alexandria and advised its citizens to avoid such destinations.25 American citizens have also been issued with warnings barring them from traveling to Egypt. The American department of state affairs issued alerts to American citizens on January 30, 2014 advising them to cancel their scheduled flights to Egypt. According to the US consulate in Egypt, the July 2013 coup and the resulting violence is a threat to its citizens and advocated for all Americans to avoid the areas curbed with demonstrations. The demonstrations in Alexandria resulted into the killing of a US citizen on June 28 201329. The incident remained as a remarkable setback for the tourism industry as fewer American citizens are willing to stay or visit the country9. The situation in Egypt raised international concerns when some international journalists were captured and detained. The Egyptian interim government detains journalists on grounds that they are biased. Journalists are increasingly being attacked in Cairo. Detention of journalists in Egypt is an act that violates human rights and the freedom of international press20. Countries that have no adherence to human rights are considered an undesirable tourist destination. Tourists need assurance that their rights will be observed and respected wherever they visit. Consequently, the prevailing human rights violation makes Egypt unsafe for tourist activities18. Tourism depends to on the availability of a well-developed hotel industry. If hotels remained operational during the riots, customers would be prone to attacks from rioters. In addition, hotels, being the only residential premises for tourists in Egypt, could not guarantee tourists their safety. Tourists were compelled to leave Egypt. In 2013, only 9.5 million tourists stayed in Egyptian hotels as compared to 14.7 million tourists in 201019. The development of the Egyptian tourism industry is dependent on the revenue generated from the services offered to tourists. Recent political developments in Egypt have not been favorable for the provision of commercial services to tourists21. As a result, less revenue is being generated and this has not been sufficient for sustaining the industry. Development of tourism has stagnated because Egypt cannot make advancements due to the scarce revenue. As long as political instability prevails, Egypt cannot get back to its original position as one of Africa’s most attractive tourist destinations30. Economically, the revolution in Egypt preceded losses in the tourism industry. Revenues obtained from monuments, like the pyramids have fallen substantially by 95 percent since 2011 when the revolution began. Overall tourism income went down by 54% over the same period19. The reduced revenue has resulted in problems in the Egyptian antiquities and tourism ministries. Low income made it difficult for the ministries to pay their workers, a situation that drastically affects the ministries’ activities and consequently makes the coordination of tourist activities and services difficult. It is imperative to note that the tourism sector plays a major role in fuelling the Egyptian economy. The cruise fleet operating across the Nile River has over the years been a popular tourist attraction. Conversely, after the political situation worsened, most of the fleet has had to lie idle. Locals who rely on the income they obtain from working in the tourism industry have been negatively impacted by the reduced workload. Guides at the Giza pyramids are earning less from the customs they charge. All these issues trickle down reducing GDP which sustains the whole economy. The graph below illustrates the trends associated with both tourism and the GDP26. (Source: Tim Analytics Portal, 2015) Effect of Corruption on Tourism in Egypt Government clerks obligate small and medium business owners to pay bribes in monetary form to obtain initial operating licenses. Moreover, clerks continue to obtain periodic bribes from business owners that are afraid of their businesses being closed or having heavy fines imposed on them. Corruption is notably prevalent within local government10 The Egyptian penal code is legislates against various forms of corruption including abuse of federal offices, bribery and graft practices by state officials. However, nepotism, extortion and other forms of corruption are major barriers to the development of the various economic sectors. Tourism is a constituent sector in this case. Fraudulent activities are a major hindrance to the expansion and enhancement of the Egyptian tourism industry. In 2011, Zoheir Garranah, a former Tourism Minister in Egypt was jailed after being charged with the offence of issuing licenses to companies unlawfully5. The issuance of the operation permits to new tourists companies violated a previous order stating that the awarding of licenses should stop10. The controversy is a reflection of the corrupt practices that are attributable to the Egyptian tourism sector16. In a just or fair setting, tourist organizations are supposed to obtain licenses in a lawful manner. Consequently, corruption hinders the activities of tourist companies and catering for travelers needs becomes a problem. Corruption in the Egyptian tourism sector creates discontinuity in the provision of fundamental services to tourists and discourages them from visiting the country. The Situation in Egypt in a Year and Five Years’ Time Egyptian authorities are putting several remedying measures in place in order to save the tourist sector. However, the measures may not take effect within a years’ time as a result of the lengthy implementation process. Therefore, the future of the Egyptian tourism a year is promising but there is no guarantee that the situations will improve13. Conversely, if the Egyptian constitution is tailored to suite tourist activities and implementation of specific measures would ensure that five years on, the tourism sector will experience a major boost. Some of these measures or counteractive actions include: i. Improvement of imperative sectors such as travel through adequate infrastructure provision and hospitality services by developing the hotel industry ii. Introduction and improvement of tourist activities for example yachting and recreational sports such as golf iii. Implementation and a comprehensive and inclusive sustainability strategy to ensure the maintenance of the valuable tourism assets iv. Extension of incentives to potential investors willing to invest in the tourism sector13 Conclusion Egypt is major player in the global tourism industry. Corruption, the revolution and the coup are the key issues that have had diverse effects on the tourism sector. The revolution and the coup were major setbacks to the advancement that had already been made in tourism. Both resulted in a low tourism count that led to excessive losses in the industry13. Corruption also affects tourism in Egypt. However, two years after the coup, the number of tourists visiting the country is steadily increasing. It is likely that after five years, the level of tourist activity will have stabilized3. References 1. Abdelrahman, M. (2013). In Praise of Organization: Egypt between Activism and Revolution. Development & Change, 44(3), 569-685. doi:10.1111/dech.12028 2. Abul-Magd, Z. (2012). Occupying Tahrir Square: The Myths and the Realities of the Egyptian Revolution. 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Bridges between Cultural and Digital Worlds in Revolutionary Egypt. Information Society, 29(1), 49-60. 26. The Economist May 4, 2013. Tourism in Egypt: Arab Spring Break. The Economist. Web. June 8, 2015. Accessed from http://www.economist.com/news/business/21577089-turmoil-has-scared-all-rugged-and-russians-arab-spring-break 27. The Economist, July 4, 2013. Egypt’s Coup: The Second Time Around. The Economist. Web. June 8, 2014. Accessed from http://www.economist.com/news/briefing/21580533-egyptian-army-widespread-popular-support-has-ended-presidency-muhammad-morsi7 28. Tim Analytics Portal (2015). Egypt Revolution: Effect on Tourism and Economy. Tim Analytics Portal. Web. June 8, 2015. Accessed from http://hawaii.knoema.com/ttjcbjg/egypt-revolution-effect-on-tourism-and-economy 29. US Embassy, February 21, 2014. Travel Alert for Egypt. US Embassy. Web. June 8, 2015 Accessed from http://egypt.usembassy.gov/ta-02212014.html 30. Zainub, I., & Wall, G. (2013). Assessing Tourism Planning: Goals and Objectives for Egyptian Tourism. Journal of Hospitality & Tourism, 11(1), 43-53. Read More