Egypt's closure: what losses the citizens and businesses should prepare for

On Friday, Russia suspended air service to Egypt. Tourist industry began to count the losses from the loss of the main direction for the New Year. Just to transport the Russian tourists from Egyptian resorts, the tour operators will lose $10 million.
11.11.2015
RBC
Origin source
President Vladimir Putin on Friday, 6 November, agreed with the recommendations of the National Antiterrorist Committee to suspend all Russian airlines flights to Egypt "to establish a proper level of aviation security posts," the Kremlin press service. At last the day by the Security Council, Putin held a meeting with permanent members, which, in particular, discussed "the situation in the aviation industry," October 31, on the Sinai peninsula crashed Airbus A321 "Kogalymavia", carrying out flight Sharm el-Sheikh - St. Petersburg. Killing all 217 passengers and seven crew members.

On Friday, the Federal Air Transport Agency 20:00 Moscow time suspended all regular, charter and transit flights to Egypt. It was decided to take out already in Egypt compatriots and their luggage separately. For delivery of luggage will be involved EMERCOM planes. Tourists return flights of the same airline that brought them to Egypt.

Prematurely evacuation will not. On Friday at the first meeting of the operational headquarters headed his vice premier Arkdiy Dvorkovich announced that tourists will return home at the end of the scheduled vacation. Because the maximum duration of the tour, as a rule, does not exceed two weeks, then during this period officials plan to complete the evacuation of the majority of tourists.

On Friday Rosturizm estimated amount held in Egypt compatriots about 45 thousand. Man on Saturday after a meeting with representatives of tour operators, agency networks and industry associations it was already about 80 thousand. And about 100 thousand. People bought tours to Egypt with departure to the end of December.

To live up to Monday

Sami tour operator across Egypt on Friday began to declare that stopped selling tours to Hurghada and Sharm el-Sheikh. The main players in this area are the Coral Travel, «Pegas Touristik», Tez Tour, «Biblio Globus», Anex Tour, Sunmar, TUI, «Natalie Tours», Brisco.

Coral Travel and Sunmar (includes one Turkish holding OTI), «Pegas Touristik», Anex Tour, Brisco offered to its customers, who have been in the days to fly to Hurghada and Sharm el-Sheikh, rest on the same dates in Antalya, Turkeye, "Biblio Globus" - in Cyprus. "Natalie Tours" and TUI announced that they are ready to provide an alternative variant of rest in any other direction, promising that its total cost will be refunded upon cancellation of the tour. Tez Tour said on its website that the possibility of sending replacement will be published "soon".

20-30% of the clients of tour operators agree to change direction, Dvorkovich said on Saturday. These figures confirm the general director of "web shops burning permits" Sergei Agafonov, participating in the work of the operational staff. It is primarily those tourists who had to fly to Egypt this weekend, Agafonov explains.

Along with the replacement direction of tour operators offer their customers have already paid amount, relatively speaking, to deposit: Move holiday and book in December or after the New Year another tour (if it will be more expensive, you will have to pay the difference, if less - it will return tour operator ). For two days - Saturday and Sunday - draw conclusions, how many tourists have agreed to these conditions, incorrectly, etc.eye of customers took a pause for reflection, said general manager of "Pegas Touristik" Anna Podgornaya. Most of the clients of our agency are waiting for Monday, when there will be more clarity, confirms the representative of the network "Hot Tours" Olga Ivanova.

As the Russians will take out of Egypt

Currently, Egypt resting about 70-80 thousand. Russians. The Russian government has announced that Russian tourists will be taken out of Egypt forces MOE and airlines in terms as close as possible to those specified in their tickets. According to RBC, a source close to the government, the evacuation will be scheduled in the same way as is done by the UK authorities. Initially, tourists will be transported to the minimum necessary hand luggage and luggage delivered to the home later. Evacuation costs are likely to be financed from the Reserve Fund for the prevention and liquidation of emergency situations and natural disasters. According to RIA Novosti, as of November 8 for 11 thousand. Tourists were returned to Russia.

Proanonsiroval "Natalie Tours" and TUI full refund hundredTour bridge in Egypt in its policy - is now purely voluntary gesture of the tour operators. Article 14 of the Law "About bases of tourist activity in the Russian Federation" stipulates a special procedure, when there is a threat to the safety of tourists and the preservation of their property. About this threat tour operators shall inform Rosturizm. Only in this case the tour operator or travel agent, concluded the contract with the tourist, has to return to the full cost of the tour (if the client has not yet taken advantage of this service). At the same time it is necessary to terminate the contract in court.

In the absence of notification to the tour operator or travel agent to the Federal Tourism Agency has the right to keep the actual costs incurred to terminate the contract: already purchased ticket, pay-per-listed hotel room, etc.

Rosturizm still not officially informed the tour operators of the existing threat to the life and safety of the tourists of their property, says the head of the legal department of the Association of Tour Operators of Russia Nadezhda Efremova. Twice the Russian authorities actually prohibit organized trips to E over the last five yearsipet (see. help), but then reminds Ephraim, Rosturizm issued or an order or an information letter, which recommended tour operators and travel agents to suspend sales in this direction. Now this is not, so there is no legal basis for the refund of the full cost of the tour concludes lawyer.

As covered Egypt

Russian authorities have already twice - urged travel agents to stop selling tours to Egypt - in 2011 and 2013.

The first time was in early 2011, during the "Arab Spring" in Egypt as deposed President Hosni Mubarak. In the order of the Federal Tourism Agency of 29 January 2011 "On the adoption of urgent measures in connection with the situation in the Arab Republic of Egypt," the agency recommended that operators, travel agents and their associations "to suspend sending Russian tourists to Egypt for the duration of the security threat (to normalize the situation)."

Already located in the resorts of Egypt, the Russians were advised "not to leave the hotel complex and other places of temporary stay." Then the flight to Egypt suspended all Russian airlines, but they only took out the tourists (foreign carriers, in particular on EgyptAir, continued to fly in both directions). It is noteworthy that of the 40 th. Of Russians vacationing in February 2011 in the resorts of Egypt, early return home only a thousand tourists agreed.

This de facto ban was lifted, only 1 April 2011. Then the Russian Association of Tour Operators estimate the losses of all domestic travel industry from a two-month closure of Egypt's approximately $ 200 million. But to completely close the border is still not possible. In February 2011 in Egypt visited, according to its statistics agency, 6.2 thousand Russians, in March of that year -. 6.3 thousand in April, when air service was resumed, visited Egypt already 111.5 thousand Russians (the year before.. - 321.5 thousand)..

The second time, the authorities tried to ban the sale of tours to Egypt in August 2013, when, after the overthrow of President Morsi the military authorities imposed a state of emergency regime. Late in the evening August 15, 2013 Rosturizm issued an information letter in which again recommended travel agencies, etc.ekratit selling tours to Egypt. Flights to this country almost completely stopped until September. But September 15, 2013 the tour operator "Biblio Globus" resumed flight program "Transaero" in Sharm el-Sheikh. Rosturizm then expressed "regret" that the tour operator did not heed the advice. However, the example of "Biblio Globus" followed by other companies, who did not want to lose money.

Its recommendations Rosturizm revoked only in November of 2013. Egyptian statistics show that the second time the ban did not load. In August 2013 the country was visited by 181.9 thousand Russians in September -. Only 26.8 thousand in October -. Already 145.7 thousand, in November -. 250.4 thousand.

The first loss

Interrupted air communication with Egypt worsens and so difficult market position of Tour Operators. Due to the devaluation of the ruble demand for all mass directions decreases since the beginning of this year. Only Egypt as the most budget line was able to demonstrate growth in tourist flow from Russia in May-June, when the ruble strengthened. But in July and August after a devaluation of the ruble in the number of tourists Hurghadaand Sharm el-Sheikh has become once again fall.

In September began the agony of "Transaero", a key airline in the tourist market. As a result, in the most difficult situation was its strategic partner - tour operator "Biblio Globus", in the summer of airline proavansirovavshy 8 billion rubles. But after the crash of the Airbus "Kogalymavia" (operates under the brand name Metrojet) expected demand fell even more.

For how long interrupted air communication with most popular tourist destination in the winter season, it is unclear. Dvorkovich said on Saturday, a minimum of a few weeks - until it is audited and developed security measures.

Meanwhile, tour operators, on their own admission, are already losing money on the flights, which are now sent to Egypt empty, only to pick up tourists from the resorts. These flights are carried out by tour operators, and each empty chair they lose half the cost of the ticket, indicate Anna Podgornaya of the "Pegas Touristik" and the president of "Natalie Tours" Vladimir Vorobiev. According to them, the cost of the ticket to Sharm El Sheikh or Hurghada and back nand one person stands at an average of about $ 250. It should take about 80 thousand. Man, so simply, on this tour operators will lose $ 10 million, said Vorobyov.

What makes up the price of the tour in Egypt

That air transportation is the most expensive part of a tour package in the standard cost in Egypt, as well as to other public areas. The average cost of an air ticket to Hurghada and Sharm el-Sheikh and back is now equal to about $ 250 per person, a standard double room in a five-star hotel in Egypt is the tour operator an average of $ 30 per night, about $ 5 per person is spent on transfer to the hotel and back airport transfers president "Natalie Tours" Vladimir Vorobiev. To this we must add $ 1 per person per day for health insurance and 15% of its own margins, of which 9-12% will travel agency commission for the sold tour, added the general manager of "Pegas Touristik" Anna Podgornaya. Thus, the standard week-long tour in a five-star hotel for two should cost from $ 844. But it is stipulated Piedmont, ideal when nobodyno dumping, causing everyone else to cut prices.

Among other potential losses - prepaid Egyptian hotels. Its collapse after last year's massive tour operators require almost all hoteliers, says Piedmont. Now tour operators will peredogovarivatsya with local partners, promising the same amount of load after the flight connection will be restored.

After the sale of the newly opened, demand should recover quickly, because Egypt - this is the direction where the tours are buying at the last moment, optimistic Vorobyov.

Not only tour operators

Serious losses are now threatened not by tour operators, and those of their owners, which have built over the past few years companies with their own air transportation. For example, the related "Pegas Touristik" airlines are Pegas Fly (can be operated, according to the Federal Air Transport Agency, eight aircraft) and Nord Wind (21 aircraft), Anex Tour - Air Azur (11 aircraft), Brisco - Metrojet (seven aircraft), Coral Travel and Sunmar - Royal Flight (six aircraft) Tez Tour - I Fly (six aircraft).

During the winter, the budget is Egypt samam mass direction, which in these months there are practically no alternatives. Relatively cheap hotels in Thailand, but due to its geographical location the flight until its resorts of the European part of Russia goes longer and more expensive. In the park is dominated by airlines listed medium-haul aircraft, which no intermediate landing from Moscow to Thailand can not fly.

Thus, to the owners of Tourholding question arises, how to prevent downtime today its aircraft. «Boeing» Royal Flight will fly to Goa, Bangkok, Dubai, Ras Al Khaimah and Antalya, says Head of Public Relations of Coral Travel Marina Makarkova. At the same time, it recognizes that "the raid, of course, will decrease," because all these areas are not a complete substitute for Egypt in terms of the numbers of tourists.

In addition to its own airlines to tour operators in a number of owners have running and hotels in Egypt. For example, OTI Holding is operating under the name Otium two hotels in Sharm el-Sheikh and one in Hurghada. So far, says Makarkova not a decision that is more favorable — suspend the operation of hotels or continue to work with low load, taking the internal market of tourists and nearby countries.

On the morning of October 31 in Egypt plane crashed A321 «Kogalymavia" Russian airline. The aircraft flies the route Sharm el-Sheikh - Saint Petersburg. On board were 224 people, including crew. According to the Egyptian authorities, in the crash of A321 no survivors. According to the preliminary version of Egyptian cause of the accident could serve as a technical problem. According to the representative of the Egyptian Committee for the investigation of aircraft accidents Ayman al-Mugadema, the pilot alerted ground controllers that the plane appeared "technical problem" and he needs to land as soon as possible. According to the radar observations, the plane was reduced to two kilometers per minute before he fell to the ground. Russia launched an investigation into the causes of the crash. Decree of President Vladimir Putin's November 1st has been declared a day of mourning.

promises to help

Prime Minister Dmitry Medvedev on Sunday gave chargede Arkady Dvorkovich to work out a program to support tour operators. This question on Sunday morning already preventively discussed before the next meeting of the operational headquarters at Vnukovo airport, told RBC head of the Federal Tourism Agency Oleg Safonov. From the tourism industry, he is waiting for a consolidated solution which help, in her opinion, is paramount. To do this, on Monday, 9 November, Safonov will meet again with the tour operators, and on Tuesday they will Dvorkovich. Such a meeting is really planned on Tuesday, confirmed to reporters after the meeting at Vnukovo Deputy Prime Minister.

Association of Tour Operators of Russia Monday to prepare their proposals, promises its executive director Maya Lomidze. If express at least moral support, it will be a historic event, ironically the head of one of the travel agencies. First State aid to tour operators had not provided.