Egypt's economy hurt as travellers avoid the unrest

NEW YORK (AP):

The violence in Egypt is already hurting the country's tourism industry and, in turn, its economy. It's also raising fears that other Middle Eastern countries will suffer as well.

Many US travellers have cancelled trips to Egypt. Some tour operators are avoiding the country, and Delta Air Lines and EgyptAir suspended flights from the US to Cairo. Stock markets in the Middle East fell sharply during the weekend.

Travellers faced the same question as Rob Solow, who is booked on an Egyptian getaway in February with his wife.

"Is it going to be an issue where we are going to have to watch our backs the whole time?"

The Yorktown Heights, N.Y., couple aren't sure if they'll make the trip. But Solow said he won't be going to the Middle East in the future: "I just think it's a troubled part of the world that's not necessary to visit."

bad timing

The timing of the violence and political uncertainty couldn't be worse - winter is the high season for visitors. Large tour operators such as Gate 1 Travel and cruise companies including Norwegian Cruise Line, have cancelled Egyptian stops. Tours elsewhere in the Middle East haven't been cancelled, but travel agents are getting a steady stream of inquiries about the status of planned trips.

"The ones who haven't booked are holding off, and the ones who have, are trying to get out of it," says Blake Fleetwood, owner of several Cook Travel businesses around New York.

Tourism is a major industry in Egypt, a country that struggles with poverty. It accounts for 5 per cent to 6 per cent of the country's gross domestic product, according to several estimates. Egypt is also often a starting point for people exploring Jordan and parts of Northern Africa.

Cairo International Airport is the second-largest airport in Africa after Johannesburg, handling roughly 16 million passengers a year. Most of them - 15 million a year - are tourists, according to the Egyptian Tourist Authority in New York.