The Red Sea Tourist Investment Assembly Chairman, Waheed Rahmy declared that the decline in dollar foreign exchange rate, along with the increase in the commodity prices have had a negative impact on the profit margins of the tourism related businesses in the Red Sea, particularly the hotels that currently receive fewer Egyptian pounds from their dollar income.

 

It has been reported in the October 2007 issue of the UNWTO World Tourism Barometer report, that if not carefully monitored, these exchange rates can bring about massive changes in relative purchasing power and in destination price rankings.

"In reaction to these fluctuations rendering prospects unknown, suppliers will tend to conclude future contracts in the Euro currency. It has been agreed that JAZ Hotels, Resorts and Nile Cruises will sign future contracts with tour operators in the Euro Currency.”, said Amani El Torgoman, Deputy General Manager and Director of Tourism Operations of Travco Travel Company of Egypt.