Egypt: Tourism Industry In Economic Decline Due to Political Unrest

Two years of political unrest in Egypt has left the country in a precarious position in regard to their tourism industry, according to NBC News.

Many Nile cruises have stopped running and the vendors near the pyramids are becoming desperate, descending on approaching taxis like a plague of locusts.

In 2010, before the revolution, a record 14 million tourists traveled to the country. The industry made up 13 percent of Egypt's GDP and employed one in seven workers, either directly or indirectly. In 2011, the number of tourists in Egypt dropped to 9.5 million and they haven't recovered. Tourism Economics, a consultant firm, predicts 11.4 million tourists will travel to Egypt in 2013.

However, the Egyptian Tourism Federation estimates that hotel occupancy rates are barely reaching 15 percent in Cairo and are below five percent in Luxor.

The Red Sea resort of Hurghada draws many Russians, helping it cope better than other businesses.

"It is the cheapest and closest destination," Maxim Stepanov, who travels from Russia, said. Russians don't need visas, which also provides an appeal to the resort.

"Our occupancy rates for winter months have been approximately the same as before the revolution, though we've cut prices to maintain this," Mohamed Elassy, a manager of the Hurghada Movenpick Resort, said.

"We want to live in stability and for tourism to come back," Heshmat Youssef, who used to sail tourists down the Nile, said. His business has dried up since the political unrest.

"Let us eat already," he continued. "We are extremely tired."

The U.S. and many European governments are advising citizens to avoid Egypt.

"We have canceled all trips to Egypt until September 15," Anja Braun, a spokeswoman for TUI, a large travel operator in Germany, said.

When violence broke out earlier this month, many operators took travelers back home early.

"There will be losses on all sides, from the souvenir vendors in Egypt to the hotel and bus operators and airlines to the travel agencies in Germany," Torsten Schaefer, of the German Travel Association, said. "It's too early to say how high the losses will be, but certainly there will be massive cuts for the population in Egypt and livelihoods will be destroyed."