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Floating hotels incur EGP 50,000 of weekly losses due to high fuel prices - Daily News Egypt

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Floating hotels incur EGP 50,000 of weekly losses due to high fuel prices

In case of implementing programmes and loading companies with the difference in diesel prices, owners of boats could suffer losses of over EGP 50,000

The tourism companies seek to escape losses after the rise in fuel prices in light of the signing of contracts for the rental of boats for the next period, while at the same time owners of companies stressed the inability of the Ministry of Tourism to intervene in this matter and stop the bleeding losses expected until the end of October.

Ramadan Hagagy, member of the Chamber of Tourism Establishments of the Egyptian Tourism Federation, said that the rise of diesel price forced prices up by 15% at least.

He explained that companies have three options: cancelling contracts and partially closing establishments, implementing programmes and bearing losses, or amending contracts with foreign tour operators.

He pointed out that tour operators refuse to amend contracts, as prices have gone up dramatically for them and can not convince their customers to pay more.

He noted that if the programmes are implemented and companies bore the difference in diesel fuel, owners of boats would suffer EGP 50,000 losses per week at 50% occupancy rates.

Haggag said that contracts do not include penal conditions in the event of termination, which is why companies lean towards this solution.

He noted that a trip between Luxor and Aswan requires 15,000 litres of diesel at a cost of EGP 60,000 that has now surged to EGP 85,000.

He stressed that the Ministry of Tourism cannot be used to postpone the implementation of the decision to increase fuel prices on tourism companies, because it is a state decision and not the Ministry of Tourism role.

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