Currency Crisis Discussions
Egypt’s businessmen union held a meeting in January which discussed the consequences of the falling exchange rates of Russian, Ukrainian and Belarusian currencies on Egyptian tourism and exports.
Ahmed Balbaa, head of the tourism committee at the Egyptian Businessmen Association, said the Russian roubles decline against the US dollar had caused a fall in the numbers of Russian tourists to Egypt by 50 percent; he also noted this has been exacerbated by the currencies’ black market.
Balbaa suggested that commercial exchanges between Egypt and Russia be made based on an exchange of the currencies of both countries.
He explained that if that the barter system is applied, it would help reduce foreign spending, alleviate currency fluctuations and lessen losses in tourism and exports.
Mr.Ahmed Balbaa also suggested a reconsideration of rates quoted for hotel reservations as well as taxes imposed on tourist and hotel services.
Until these currency problems can be resolved the effects on tourism in Egypt are likely to be felt in Sharm El Sheikh for many months to come.
Tags:business, work
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