Evaluating the Impact of Unrest on Tourism in Egypt

The provided content consists of various academic articles and online resources related to the tourism industry. The articles cover topics such as sustainable tourism, tourist behavior, tourism development, and information technology in travel planning. Additionally, the online resources include news reports on tourism-related issues, including attacks on tourists, job cuts in the tourism sector, and political unrest affecting tourism in certain countries. Overall, the content provides a range of perspectives and insights on the tourism industry.

CONTEMPORARY
ISSUES
IN
TRAVEL AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Analyzing the issues which are currently driving change in travel and tourism sector.........3
1.2 Analysing two different current issues by using appropriate methods and resources
focusing mainly on the impact of political unrest........................................................................5
TASK 2............................................................................................................................................5
PPT...............................................................................................................................................5
TASK 3............................................................................................................................................6
3.1 International airline groups businesses responses to change.................................................6
3.2 Strategies developed by International Airline group business like British Airways and
Vuieling to provide response towards change ............................................................................7
3.3 Justification for the selected strategies..................................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of issue and trends that drive changes in travel and tourism sector...........................9
4.2 Consequences of the businesses failing to respond to the market change...........................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12
2

INTRODUCTION
Travel and tourism is the most leading sector at present as compared to financial, retail,
automation or health sector. This sector provides more than 10% share to the global economy by
contributing to gross domestic product. Travel and tourism sector also supports the economy by
generating plenty of job opportunities for around 277 million individuals. As per the reports of
Office for National Statistics (ONS), 1 out of 11 jobs is generated by this sector. Rapid
globalization, removal of barriers, greater connectivity between nations is helpful for assuring
the growth in travel and tourism industry (Telfer, 2014). Further, there is ample number of
benefits of tourism like it helps in generating foreign currency, improving the standard of living
of people by giving them job opportunity, supports government through taxation, etc. It can be
stated that travel and tourism sector serves as the booster for economy. At present, industry is
facing large number of contemporary issues. They are further major barriers in the growth and
progress of tourism sector. In this report, clear understanding will be shown regarding various
aspects of travel and tourism industry with reference to Egypt. In this report, issues that are
currently driving change in travel and tourism sector will be discussed. Further, methods in
which tourism organization responds to change will be explained. The consequences of business
that fail in responding towards changes will also be discussed.
TASK 1
1.1 Analyzing the issues which are currently driving change in travel and tourism sector
In the current scenario, understanding will be reflected about the contemporary issues
that are overcome by tour operators while designing tour package to Egypt. It is a beautiful
country with famous tourist destinations like Great Pyramid of Giza, Great Sphinx of Giza,
Valley of the Kings, Cario, Luxor temple, Sharm el-Sheikh, Hurghada, etc. Every year, country
welcomes around 14 million visitors. Tourism of Egypt provides job opportunities around 12%
of Egypt's manpower. The sector also contributes up to 11% in GDP and foreign exchange
earning profits by 14.4% (Tourism In Egypt. 2015). Therefore, it can be stated that tourism has a
significant contribution in the economic progress of nation. From the critical assessment of
present state, it has been identified that travel and tourism sector is subjected to various changes
due to prevalent issues. They are further described as follows:
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 Need for Improved Security: At present, the travellers are more concerned about their
physical safety. Main reason of this is that nowadays, terrorists are targeting tourist
destinations for spreading terror and misery (Sundbo, 2014). These attacks are like 2016
attack on Paris, Brussels bombarding resulting into killing of around 35 people. This
further result in the reduction of tourist visits to the leading destinations. Therefore, it is
becoming important for tourism firms to ensure the safety of its customers by giving
them proper assurance. In this respect, safety at airports must be increased and resorts
having high security facility must be selected in the tour package (Smith, 2014 ).
Recently, three international visitors were attacked in Hurghada Red Sea Resort which
increased terror and unrest among visitors. The tourism organization should assure that
they provide safe surroundings to their customers.
 Advancement in technology: With the rapid emerging techniques and processes, it has
become important for tourism entities to use the latest gadgets. This will ensure
satisfaction among customers and would meet their technology related demand. Also,
tourism companies can offbeat the rivals by using upgraded technology (So, 2014). To
support increase in tourism of Egypt, organization can use virtual tour. It will help in
simulation of Egypt and its leading destinations with the help of videos and images so as
to attract customers to personally visit the destination. Other than this, self check out or
mobile check in facility must be provided to customers to increase their convenience.
Further, facility of online booking and e-payment must also be provided (Xiang,
Magnini and Fesenmaier, 2015).
 State of economy: The status of economy of selected destination is also having a direct
impact on tourism. GDP, GNP, bank rate and disposable income are some of the factors
that have affect on tourism business. It is like at present, inflation rate is increased up to
12.3% which is the highest rate in past 6 years. Further, bank rate is 11.75% which has
increased by 1% from the past that was 10.75%. Borrowings of tourism organization
have become costly (Tourism In Egypt. 2015). This will further have an adverse impact
on the sales of tour package as it will make tourism package costly. Further, decrease in
disposable income will also prevent customers to spend on travelling and other
recreational activities.
4

1.2 Analysing two different current issues by using appropriate methods and resources focusing
mainly on the impact of political unrest
From the aforementioned discussion, it is clear that progress of travel and tourism
industry is highly affected by different issues prevailing in the present scenario. Major issues
related to political unrest are resulting into disturbance in the society and entities operating in it.
These issues also affect the ability of tourism firm to promote tour packages to Egypt (Xiang,
Magnini and Fesenmaier, 2015). In order to ensure the progress of travel and tourism industry, it
is important to resolve these issues on time. Failure to resolve the problems may lead to drop the
sales of tour package to Egypt. From the critical study of nation, it has been identified that
country is facing civil unrest among public. It started from Egyptian revolution of 2011 when the
citizens did mass protest for the removal of long term president Hosni Mubarak. However, in
2013, there was another mass protest for removing another leader, Mohamed Morsi. The
insurgency and other revolution in Egypt lead to death of more than 5500 individuals (Political
unrest in Egypt. 2016). This has resulted to massive tension and unrest among travellers that are
intending to take holiday packages to Egypt. They are strained about civil war that can anytime
break down in the country. This also forced UK based tourism organization to cancel all the
tours to Giza and parts of Egypt after the warnings generated by UK foreign office. Other than
this, country is exposed to high terrorism due to extremist promoting and forcing Islam. Further,
other places like Tunisia are also affected by the terrorist attack. In Tunisia, 37 British people
were killed at beach resort by Islamic extremist ( Edwards, 2010). Thereafter, in 2005,
bombarding on Sharm-el-Sheikh is also among drastic impacts of terrorism on tourist
destinations of Egypt. Major consequence of this is that 50% of tourist visits to Egypt have
declined in the past 5- 6 years (Egypt Attack. 2015). Therefore, from research about website and
news report, it has been identified that tourism of country is highly affected due to political
disturbances, high terrorism, etc (Lozano-Oyola and et.al., 2012).
5

TASK 2
PPT
2.2 Analyzing the current trends of travel and tourism industry with the help of proper techniques
As stated earlier, there are various opportunities that are available in tourism industry. Therefore
tourism company are using various contrasting technique used. Such as there is increase in niche
tourism. The small segment can be focused with the help of niche market.
In the present context, the major growing niche market in current scenario are, eco-tourism,
cultural, educational, tourism, dark tourism, sport tourism etc. In the present section focus can be
given on dark tourism. It further involve traveling to historic places which are related with
sorrow, tragedy, disaster and death. Dark tourism stimulates those travelers that have peculiar
interest in traveling to places related to misery like, cemeteries, battle grounds, graveyards,
prisons and massacre etc.
UK is famous for many dark destinations. For example, tower of London, holocaust museum,
Jack the Ripper, Highgate cemetery, Bart’s Pathology Museum,etc. There are 10 famous dark
destination in London which are gaining popularity in present context. The Tower of London
among most popular site followed by Holocaust museum. It has been identified that around 5
million individual visited Tower of London in 2014. Likewise there are many dark sites that are
luring attention of many travellers. In addition to this there are many dark sites in UK In addition
to this there are many dark sites in UK like, Bradford at West Yorkshire, Whitby in North
Yorkshire, Scotland's "secret" bunker etc. Recently in 2015, government introduced Northern
Rails ESK Valley Service which facilitated 120,000 passengers to visit Whitby a dark destination
The prime reason for increased popularity of dark sites is due to growing interest of individuals
to gain knowledge about history and experience the truth related to it by visiting such places.
The young individuals visit the dark sites to experience adventure and thrill. While many
travellers visit dark sites for academic research.
The government is also increasing the promotion of dark sites so that tourism can be
increased which will directly benefit local population and help them in improving their living
standard.
FACT SHEET
6

DARK TOURISM IN 2014 DARK TOURISM IN 2015
Total 915000 visitors visited Tower of London
a dark site of UK. The major reason for this is
due to use of ceramic poppies to attract more
travelers.
No of visitors to Tower of London was
increased by 22% with more than 5 million
visit in the year.
The total number of visitors to Whitby Abbey
was 135,910.
The Whitby Abbey a famous dark site of UK
had total 146,277 visit.
The battle of Abbey is a site visited by large
number of audience 111,990 to experience the
life of those died during war (Statistics about
Tourism. 2015-2014).
106,784 visitors had a trip to Battle of Abbey.
It can be witnessed that there is fall in number
of tourist as compared to previous year.
Edingburgh Castle recognized as most haunted
place of Scotland was visted by individual in
1,480,676 in year 2015
In 2015, the number of travelers to Castle
increased upto, 1,568,508 (Statistics about
Tourism. 2015-2014).
TASK 3
3.1 International airline groups businesses responses to change
The international airline group (IAG) is multinational airline holding entity from, British-
Spain. The entity is registered in Spain but it have its functional headquarters in England. It is
leading company that provide air transport services, freight services etc. The brand is recognised
among sixth largest air travel company in the globe and third largest in Europe premeditated by
receipts of year 2010 (Mehmetoglu, 2009). To maintain the leading position, it is important for
company to respond towards change. This will help in gaining competitive advantage in market,
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enhancing satisfaction among customers etc. By assuring flexibility and introducing change,
company is able to meet the emerging needs of customers. In addition to this aspect, new
technology can be adopted in entity to facilitate change. Such as, with the increasing dependency
of customers on internet, IAG has started providing online services and accept e-payment.
Thereafter, increase in demand of affordable travel services, International Airline group have
introduced low cost carrier.
Further, company is responding to changes in significant manner within its operational
areas also. Such as, it has introduced diet food and drinks for passengers considering the health
concern among customers (Wu. and et.al, 2016). Likewise, with the increasing environmental
consciousness among customers, company is adopting fuel efficient techniques that emit less
pollution. Along with this aspect, significant steps are taken to reduce carbon footprint in
environment, reduce the noise of aircraft landing and take-off (Michael, 2014). The political
changes also impact the company to make modifications in various areas. Such as, company
support government in increasing the security at airports so as to reduce the terrorism threat.
Further, modifications are done in working practices with regards to changes in legal policy. For
instance, with the introduction of Competition Act 2002, company ensure it is indulged only in
fair market practices (Gössling and et.al., 2012).
The organization use PESTEL and SWOT analysis as vital tool that help in identifying the
impact of internal and external variable on its operations which further forces company to make
necessary modifications. In this respect, the impact of political, economic, social, technological,
environmental and legal factors on the operations of company can be identified with the help of
PESTEL analysis. On the other hand, SWOT analysis help in determining the impact of internal
strength and weakness on the operations of company.
3.2 Strategies developed by International Airline group business like British Airways and
Vuieling to provide response towards change
In order to survive in rapid changing environment, it is becoming crucial for company to
respond towards changes in positive manner. This will further help in ensuring continuous
progress and prosperity of business. To meet the need of changes in business, there are different
strategies that are adopted by company (Eugenio-Martin and Inchausti-Sintes, 2016). In this
respect, the IAG business like, Vueling, British Airways, Iberia a common strategy of need
8

identification. This further enable company to ascertain the needs, expectations and taste of
customers and make viable change in products and services. Such as to facilitate convenience to
consumers International Airline Group is taking use of its new digital labs to develop mobile
application so that service can be booked directly through cellphone. Further, the website of
company is also highly digitalized and provide information about each and every aspect of
business (Xiang, Magnini and Fesenmaier, 2015).
In addition to this aspect, company is developing a technique that will be integrated in
mobile application and further provide information to customers about time that will be taken to
reach the departure gate from their residence , after considering the road traffic, queueing time at
airport etc (Cvelbar and et.al., 2015). These strategies are further developed after ascertaining the
needs of customers. Vueling also introducing changes like planning to install WIFI in some
premium sections of its air planes. Other than this, Vueling is thinking expansion and growth by
introducing new flights for 100 locations from airport of Barcelona-El Prat. Thereafter,
company is shifting its orientation from household customers to corporate one. In this respect
new offering name Duo is introduced by brand (Dickinson and Peeters, 2014). The major feature
of this product is that it provide in-flight beverage and snacks, a vacant middle seat and
preferential boarding. Further, with the help of PESTEL analysis the entities are responding
towards change. Such as, economic factors have direct impact on the business of entity. In this
respect, British Airways have adopted price changing strategy which enable it to consider the
economic trends and make adjustment in its pricing policy. Such as, with the decrease in
disposable income of nation, company start providing affordable tour package to customers. On
the contrast, with the increase in GDP, employment level services are offered at competitive
prices (Clift and Page, 2015. Thereafter, to boost the sales of airline services British Airways is
using social media as marketing platform. Overall, it can be stated that from tradition styles of
marketing IAG business are shifting towards new marketing methods, improved technology,
customer oriented products etc.
3.3 Justification for the selected strategies
It can be justified that new strategies used by IAG business are helpful in generating
more profits to business. The strategies have overall positive impact on the business of British
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Airways and Vueling. Such as price changing strategy of British Airways was effective in
maintaining consistency in profits even when the economic situation are not favourable in some
markets. On the other hand, strategies to digitalize the processes will help company in increasing
the sales of services (Casey and et.al., 2013). Such as the mobile application with new feature
will help in attracting new customers. Therefore application will help passengers in managing
their time and catch the flight on time. By providing the facility of WIFI, entity can grab the
attention of high end customers and stimulate them to purchase premium services. Further the
strategy of Vueling of introducing flights to 100 destination will benefit the economy of nation.
This is because company will provide job opportunities to more number of individuals, by
greater connectivity company can induce travellers to visit European destinations etc (Buhalis,
and Foerste, 2015). The new product Duo will increase the attraction of many customers and for
providing new features company can also charge premium prices. The new strategy will be
advantageous for business as it will help in increasing the profitability of company. Since,
Vueling is recognized as low cost carrier by using Duo product company will be able to
redevelop its brand image. Furthermore, it will help in building positive image of brand and
increase the satisfaction level among customers (Borràs, Moreno and Valls, 2014). The need
identification strategy will help company in responding first to the changes needed in market.
Therefore, entity can get an edge over its rivals by grabbing the first mover advantage.
Thereafter, International Airline Group business will be able to meet the overall aims and
objectives of business with the help of effective strategies and processes. Other than this the
marketing aspect of business will be strengthened by using modern and effective methods of
promotion (Boniface, Cooper and Cooper, 2016). Thereafter, the entity will be able to generate
awareness among customers regarding its new products and services with the help of identified
marketing methods. Overall, it can be stated that, strategy will help company in attaining its
target objectives. It will facilitate brand to develop new and improved offerings and increase the
sales of its offerings.
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TASK 4
4.1 Impact of issue and trends that drive changes in travel and tourism sector
In this section, the learning will be shown with references to various issues faced by Myla
travel agency. It is self-directed travel agency with around 10 office in UK and specialized in
luxury travel services. It is further attracting the interest of giant multiple travel agency like,
Thomas Cook to enter in this market. However, the collaboration between the two business is
subject to various issues (Bianchi and Stephenson, 2013). The major issue faced by company at
present is related with decreasing share of ABTA agency. Further, it is anticipated that such
integration will result into massive job cutting and modification in business practices. This is
further supported by the evidence from article published in Daily Mail. Therefore, it has been
identified from the news reports that travel company is likely to trim down around 2500 jobs in
the UK. The offices and store will be closed as there is decline in the number of customers. The
organization is operating under loss of around £590 million (News of Thomas Cook. 2013). The
operating cost of company is also increasing due to its increased borrowings. All these issues
will lead to significant number of changes in the travel and tourism.
Impact of issues:
 High unemployment: The issue will lead to job cutting in the company which will lead
to situation of recession. The living standard of people will be reduced due to limited
purchasing capacity (Backer and King, 2015).
 Increased borrowings: The organization is forced to take more borrowings from bank.
The unemployed individuals will be also forced to take personal loans to meet their
different needs. This increase the possibility of inflationary state in country (Michalena
and Tripanagnostopoulos, 2010).
 High fuel prices: The hike in petrol prices will increase the operating cost of business.
The travel services will become costly and unaffordable to middle class customers.
Therefore, demand of services will be reduced to great extent as consequences of high
fuel prices (Michael, 2014).
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 Euro crisis: The Euro crisis is a situation where government fails to pay the debt. Thi s
issue will further have adverse impact on the overall economy resulting into global
recession.
Overall, it can be stated that there is adverse impact of the prevailing issues on the
business of company. Company is operating already under loss by merging with Myla travel
agency both the entity will suffer from high operational cost. Therefore, the decision of
integration should be taken after considering positive and negative consequences. Thomas Cook
is required to make changes in its operational areas by reducing the irrelevant cost, increasing
promotion through marketing campaign etc. The new technology and effective strategy can be
used to stimulate change in tourism industry (Borràs, Moreno and Valls, 2014).
4.2 Consequences of the businesses failing to respond to the market change
Since, its inception that there are varied problems that are faced by tourism sector like,
high unemployment, increased borrowings, high fuel prices, euro crisis etc. Therefore, it has
become necessity for company to adopt viable changes so as to survive in long run. The failure
to do so will lead to situation of closure of business (Michael, 2014).. Other than this, company
is likely to face following consequences which are elaborated as follows:
 Reduced sales and profitability: The failure to adopt new techniques and processes
will cause drop in sales of business. The customers will be dissatisfied with the product
and services offered by company leading to lower profitability of business. The profit
margin will be restricted if company does not respond towards the emerging needs of
customers, prevailing market trend etc (Casey and et.al., 2013).
 Change in attitude: The lack of change in working practices of company can lead to
change in attitude or perception of various stakeholders towards brand. It will develop
negative image of company in market. The customers will prefer other brands over
company. The rivals will be able to take advantage of this stage and use tactics to reduce
brand loyalty among customers. The bargaining power of suppliers will be increased.
 Adverse impact on the brand image: The limited modification in offerings as per the
trends will have affect on the overall brand image of tourism entity. They will further fail
12

to meet the expectations of customers and result into negative publicity (Gössling and
et.al., 2012).
 Increased in operating cost: The failure to respond to changes will impact the profit
generating capacity of business. However, the cost will remain same and entity will not
be able to recover it (Boniface, Cooper and Cooper, 2016).
Hence, it can be stated that, it is viable for company to respond to market changes in positive
and prompt manner. The new innovations and creative aspect must be introduced in business to
remain in long run and sustain in present competitive market situation (Wu. and et.al, 2016).
CONCLUSION
Summing up the entire report, it can be stated that travel and tourism is flourishing sector
at present which providing ample number of growth opportunities. From the above report, it has
been identified that, increasing safety issues, improved technology and changes in economic
element are some factors that are presently driving change in the travel and tourism sector.
further, it has been identified from t he report that there is high level of political unrest in Egypt
that have direct impact on the travel and tourism industry. The increasing terrorism is another
issue that is prevailing in Egypt. Therefore, tourism company should ensure the safety of its
passengers to attract them to take holiday package. Thereafter, it has been identified that travel
and tourism organization should adopt necessary changes to maintain the interest of customers
and other stakeholders. The change in political, economic, environment, technical, legal and
other factors also affect the operations of tourism organization. The report help in identifying
that various strategies can be used by business to respond to change. There are different issues
that are faced by Myla travel agency like, high operational cost, Euro crisis etc. They must be
resolved on time by making changes so as to prevent future loss.
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