Roman ruins in Sbeitla, Tunisia-- seems worthwhile

Egypt may be the country with the fastest sinking tourism-- not counting Syria and Mali-- but tourism in unlikely countries you probably never thought of going to is supposedly growing fast. Market Watch has a business report on 10 countries with rapidly growing tourism sectors. I've never been to any of them, other than Montenegro for an hour by accident once-- although I have always wanted to go to the "Stans," at least in theory.

Kyrgyzstan and Belarus might not immediately come to mind as hot spring break options. Or vacation destinations, period, for that matter. Yet they’re among the countries with the fastest-growing tourism industries, according to a new report from the World Travel & Tourism Council. The group made the calculation based on where total travel and tourism revenues, as a contribution to gross domestic product, grew fastest in 2012... Here are 10 destinations where tourism saw big leaps in 2012:

Qatar

Nearly two-thirds of its tourism revenue stems from business travel, but Qatar, on the Arabian Peninsula’s northeastern coast, saw leisure travel rise 29.9% last year, reports the WTTC. Spending by foreign visitors increased 36.7% to $6.4 billion-- the third-biggest jump worldwide-- and contributed to 23.6% growth in travel and tourism. “Qatar is definitely on people’s radar in a way it hasn’t been before,” says Saglie. It’s marketing itself more as a destination for leisure travelers, touting luxury hotels as well as attractions including beaches, museums and souks.

Azerbaijan

The country’s tourism ministry has beefed up its efforts to attract visitors, announcing in 2011 that it was offering more training for local hoteliers and other industry professionals, and putting more resources toward tourism. The effect was noticeable in 2012, helped by “calmer political seas” in the area, says Taylor Cole, a spokeswoman for Hotels.com. Spending by foreign tourists visiting the former Soviet state-- which edges the Caspian Sea in Eastern Europe and Western Asia-- jumped 56.4% in 2012, to $2.3 billion. Overall, travel and tourism spending rose 22.8%, to 2.2% GDP, according to WTTC-- and this year, another 9.3% in growth is expected.

Kyrgyzstan

Last year, the Central Asian country began allowing citizens of 44 countries to visit for up to 60 days without first obtaining a visa, aiming to get more tourists for its high-altitude mountain lakes, mountain-climbing tours and other attractions. Among the effects: Tourism employment rose 24.8%, according to the WTTC, and spending by foreign visitors grew 34.5% to $694.6 million. Overall, travel and tourism increased 21.6% in 2012, to 3% of the total GDP, according to WTTC.

Montenegro

Slow to recover after the Kosovo War and the breakup of Yugoslavia, Montenegro could well be a top tourist destination in a few years, experts say. The Southeastern European country is becoming well known among tourists as an adventure and eco-travel spot, and more cruise lines have added its Adriatic beaches as a stop on Mediterranean itineraries. “It’s a huge comeback,” says Matt Wallaert, a travel expert at Bing. In 2012, travel and tourism increased 12.6%, to 9.9% of GDP. (For perspective, travel and tourism makes up just 2.8% of the United States’ GDP.) For 2013, the WTTC expects growth of another 13.3%.

Uzbekistan

This Central Asian country’s emerging tourism economy has benefitted from the adventure-travel trend, says Lamoureux. Travel and tourism grew 11.7% in 2012, according to WTTC, and foreign visitors’ spending rose 32.5%-- the fifth-biggest increase worldwide. “More and more travelers are looking for some kind of soft or hard adventure,” she says. That might mean wandering the bazaars and staying in a yurt, or more adventurous mountain climbing and heli-skiing.

Belarus

Another young tourism economy, this small Eastern European country benefits from regional traffic (mostly Russians) to its ski resorts in the winter, and lakefront resorts in the summer. Travel and tourism grew 11% in 2012, to 2.1% of GDP, according to WTTC. Spending by foreign tourists rose 39.7%-- the second-biggest jump worldwide-- to $960 million. It’s also known as a gambling destination.

Panama

A booming economy has fueled hotels and airlines in Central America’s southernmost country, with spending on tourism-related structures and equipment contributing to Panama’s 10.5% growth of travel and tourism, to 5.2% of GDP, according to the WTTC. “There’s a lot of construction and development on the ground,” says Saglie. “Travel will follow naturally from that activity.” Those hoteliers and airlines are also offering more sales to fill rooms and seats with tourists interested in hiking, whitewater rafting and, of course, traversing from the Caribbean to the Pacific via the Panama Canal.

Philippines

Experts say there’s plenty to extol about the Southeast Asia island nation: “The people are friendly, the food is great-- it’s one of those places that hasn’t been overrun with tourists,” says Wallaert. But it’s the locals who are spending the most on travel. While travel and tourism spending rose 10.4% in 2012, to 2% of the GDP, a little less than 40% of spending comes from foreign visitors, reports to the WTTC. Some islands are more travel-suitable than others, he says. (The U.S. State Department issued a warning earlier this year, urging citizens to avoid nonessential travel to the Philippines’s Sulu Archipelago due to terrorism-linked violence there.)

Tunisia

Even before Disney announced this year that a new “Star Wars” film is in the works, tourism to this North African country was on an upswing. (In addition to Tunisia’s beaches and archaeological sites, a major attraction is Tatouine, home to sets for the Star Wars franchise’s fictional planet Tatooine.) Spending by foreign tourists grew 22.9%-- the ninth-biggest increase worldwide-- to $2.7 billion. Overall, travel and tourism grew 10.3%, to 7.3% of GDP, according to the WTTC. Prices have gone up too. Gammarth, an oceanfront suburb of capital Tunis, saw hotel prices rise 59% last year to $463, according to Hotels.com. That was the fourth greatest price increase worldwide, says Taylor.

Chile

Seven climate zones encompassing natural features, including fjords, deserts and the Andes, have helped the South American country push itself as a major adventure and ecotourism destination, says Saglie. Yet, just 17.7% of spending is from foreign visitors, perhaps in part due to expensive airfare and a dollar that’s a bit weaker against the Chilean peso. It’s Chilean travel and spending that accounts for much of the growth. A booming economy prompted a 15% increase in citizens’ spending on travel abroad in 2012, according to WTTC. Overall, travel and tourism spending rose 10.3%, to 2.9% of GDP.

The #1 concern among one subset of Americans in regard to the revolution against brutal, grinding dehumanizing tyranny in Egypt has nothing to do with Egypt's 80,000,000 mostly impoverished people, It's all about Israel. Well, relax... Mohamed ElBaradei was on Meet the Press today and he vows that the peace treaty is rock solid. And then there's the tourism-- which accounts for at least 7% of Egypt's GDP. Americans didn't get as crazy about Mubarak thugs riding through Tahrir Square killing peaceful protesters as they did about Mubarak thugs breaking into the Egyptian Museum on the same square breaking some artifacts. "People can be replaced," one American told me. These treasures can't." I wanted to vomit.

The Egyptian economy is incredibly bound up with tourism-- and the balmy winter is the high season. In a country with rampant, systemic unemployment, one job in 8 is a tourist industry job. Since the protests began, a million tourists have left the country and Egypt has lost at least a billion dollars in evaporated tourist revenues. That's massive. I was shocked that until there was actual blood flowing in the streets both the U.S. State Department and its British counterpart were working to bolster Egypt's economy by falsely claiming tourism was perfectly normal and non-problematic. In a matter of one day, they went from "Everything's wonderful; have a good time and be careful of sunburn" to "Get to the airport for an emergency flight out immediately." I was shocked that both the U.S. and British governments would put Egypt's tourist industry ahead of the safety of their own citizens.

Today's L.A. Times reports that despite the catastrophic effect of the drop off in tourist revenues "some Egyptians whose livelihoods depend on the tourist trade are sympathetic to the protesters' cause."

In the fragrant confines of the California Perfumes Palace, within view of the Giza pyramids, Ahmed Ali uncorked his scented wares-- "Try the Cleopatra oil!"-- and talked of the need for change.

"It's bad for us," he said of the tumult. "But it's a happy time for the people. In the end, Egypt will be a stronger country, a better country."

Egypt's vice president, Omar Suleiman, told state television last week that the ongoing unrest had cost Egypt $1 billion in tourism revenue. Some analysts thought that estimate was a conservative one.

The State Department advised U.S. citizens to avoid travel to Egypt and to leave as soon as they could do so safely. Over the last six days, about 2,300 Americans have crowded aboard evacuation flights organized by the U.S. Embassy in Cairo. Commercial flights, which were disrupted at the height of the turmoil, are flying in nearly empty and flying out full.

In some parts of the country, the events unfolding violently in the capital seem a world away, and tourist operators would like their clientele to think of them that way.

At one hotel in the Red Sea resort of Sharm el Sheikh, guests noticed that a few days into the protests, a big flat-screen television disappeared from a coffee nook just off the opulent lobby. Waiters explained it was broken.

The tourist economy has bounced back from hard times before. In 1997, Islamist gunmen massacred dozens of foreign tourists in Luxor, causing an initially dramatic drop-off in visitor traffic, but the industry eventually recovered. In April 2005, a suicide bomber struck near a souk in Cairo popular with visitors from abroad, killing three foreign tourists.

This morning the Associated Press chronicled the crumbling state of Egyptian tourism over the past 12 days, pointing out that major carriers like Delta and even EgyptAir have stop flying between the U.S. and Cairo and that travelers have been canceling their plans en masse.

Travelers faced the same question as Rob Solow, who is booked on an Egyptian getaway this month with his wife. “Is it going to be an issue where we are going to have to watch our backs the whole time?”

The Yorktown Heights, N.Y., couple aren't sure if they'll make the trip. But Solow said he won't be going to the Middle East in the future: “I just think it's a troubled part of the world that's not necessary to visit.”

The timing of the violence and political uncertainty couldn't be worse-- winter is the high season for visitors. Large tour operators such as Gate 1 Travel and cruise companies including Norwegian Cruise Line have canceled Egyptian stops. Tours elsewhere in the Middle East haven't been canceled, but travel agents are getting a steady stream of inquiries about the status of trips.

“The ones who haven't booked are holding off and the ones who have are trying to get out of it,” says Blake Fleetwood, owner of several Cook Travel businesses in New York.

...Jordanian economist Hani Horani said: “Foreign tourists look at the Middle East as one entity and they will avoid traveling to an area they consider unstable.”

One view is that Egyptian tourism-- which probably started a couple hundred years before Christ when Greek travelers made their way to ancient monuments-- has an uncertain future. Another view takes the exact opposite view-- that this is a good time to go to Egypt-- or at least certain parts of it. In 1997 Roland and I arrived in Cairo the day after dozens of Swiss, Japanese and other tourists were hunted down and massacred by extremists inside the Temple of Hatshepsut at Deir el-Bahri right across the Nile from Luxor, the second most important tourist area after the Pyramids and Sphinx complex at Giza. We pretty much had the whole tourist infrastructure to ourselves and it was awesome. But now, all the important historical and cultural sites are shuttered. If you like surf and sun and cheap, gaudy hotels in a cultural wilderness, though...

Contrary to popular belief, tourism is not dead in all of Egypt. The situation in the popular Red Sea destinations of Sharm el Sheikh, Hurghada, Taba, and Marsa Alam remains “safe” with hotels operating “business as usual” according to Thomson Travels.

Although the British Foreign Office has advised its nationals against all but essential travel to Cairo, Alexandria, Suez and Luxor, British tour operators offered a string of promotions this week on holidays in Egypt's Red Sea resorts which remain popular with holidaymakers despite unrest elsewhere in the country stressing that they are far from the main flashpoints.

Thomas Cook has a one-week holiday in an all-inclusive, four-star Sharm el-Sheikh hotel at £319. First Choice is offering a two-week holiday in the resort from £359 flying from London. Thomson has flights seats at £79 on a one-way flight from Edinburgh to Sharm el-Sheikh, and return flights from Manchester at £159 leaving Wednesday for 10 days in the resort. Other return flights from Britain to Red Sea destinations were priced at £149 with some flights nearly full.

The two biggest tour operators in Britain, Thomas Cook and TUI Travel, which runs Thomson and First Choice, offered several deals to the Red Sea. A spokeswoman for TUI Travel said that Sharm el-Sheikh "operates like a country in itself," run separately from the rest of Egypt, with one main road in and low unemployment due to the tourism industry. TUI Travel also said that there had been no incidents related to the uprising in the Red Sea resorts, where it was "business as usual."

"The atmosphere is quiet and calm, with Sharm el-Sheikh's main resort of Naama Bay bustling as people continue to enjoy their holidays as normal," the spokeswoman said. “The curfew is only imposed in Cairo, Alexandria and Suez. It is not being enforced in any Red Sea resort to which we operate. Booking conditions to Sharm el Sheikh, Marsa Alam, Taba and Hurgharda remain as normal”-- in other words, if you cancel your trip, you will lose most or all of your money. Thomas Cook is taking the same line, saying “no tourist areas at the Red Sea have been affected in any way by the recent demonstrations.

I wouldn't trust any of this as far as I could throw it. Of course, there is another reason some intrepid travels might want to go to Egypt now-- to witness the rebirth of a great nation as it struggles for its dignity and for its future generations against the forces of tyranny. You can't order one of those packages up at Thomas Cook everyday.




UPDATE: OK, Mubarak's Gone, Now What?

Egypt is bracing for a cratering economy but one tour operator, probably an optimist, said he expects "a return to normalcy by the end of the month." Others say March and some say April... or October.

Earlier this week, the Associated Press reported monuments and museums around Cairo were deserted. The Pyramids of Giza reopened to tourists on Wednesday after a 12-day closure, but few people came to visit.

The Egyptian Museum in Cairo-- next to Tahrir Square in Cairo, where many of the most heated political protests have taken place-- remained shuttered, though officials vowed to reopen "after the strike is finished."

Egypt relies heavily on the tourism industry. Last year, the country had 14.7 million visitors, who generated $11 billion in revenue, according to the Egyptian Tourist Authority in New York. That number is about 11 percent of the total gross domestic product for the country.

Before Mubarak's resignation, tourism officials had predicted a quick turn around once the political turmoil quiets down.

"Looking back to previous crises that hit this industry in the last decade, one can tell that the current crisis, despite all its negative effects on our business, will be and should be the fastest to fade and the least harmful of all," says ElSayed Khalifa, consul-director of the ETA in New York.

Mohamed Kamel, chief executive officer of the Red Sea resort builder Egyptian Resorts Co., told Bloomberg he was optimistic that tourism in Egypt would rebound quickly.

"People are now looking at Egypt as a more competitive destination because of the exchange rate," Kamel tells Bloomberg. "And during crises, more concessions are made to tourists to get business jumpstarted."

2010 was a good year for tourism worldwide, with much of the uptick in Asia. According to a new report from the United Nations World Tourism Organization, 2010 saw 935 million people traveling (both for business and leisure) internationally, up 6.7% over 2009, but only 2% above the pre-recession levels of 2008. Obviously, it's a sign of the rebounding economy. Europe's tourist industry-- like it's economy-- was sluggish (up 3%), despite political stability. North America, where the dollar is still cheap, saw a healthy increase (8%), even if tourists are being advised to stay away from dangerous parts of the country like Arizona. The report attributed a slowdown in tourism in Mexico to the impact of swine flu, rather than drug-violence and out-of-control corruption.

Last week, we looked at the deteriorating tourist situation in Tunisia, with tourists being evacuated and flights being canceled because of the political situation there. Today, with reports that the once much feared Tunisian police have been joining the protestors in Tunis, the tourism industry is still uncertain about which way things are going to go for that country's tourist industry. At first a country that markets itself as a comfy, apolitical Mediterranean beach resort saw only cancellations and heard the giant sucking sound of a crucial foreign currency provider going down the drain. Optimists-- like Tunisia's ambassador to Spain-- see the successful revolt as an eventual boost for tourism there.

"Tourists were a bit worried," Ambassador Mohamed Ridha Kechrid conceded in an interview on the opening day of the five-day international tourism trade fair, Fitur, in Madrid.

"Now order has been re-established and from now on tourists can come back to Tunisia," he said.

"There was a crisis of confidence, which is bad for everyone, for Tunisians, for foreign investors and of course for tourists," he added.

But once democratic elections have been organized "Tunisia will be even more beautiful, more credible... and this change will be beneficial for Tunisian tourism and for the economy."

And the UN World Tourism Organisation's Secretary General Taleb Rifai says the industry there should recovery quickly.

Rifai noted that tourists left "in a speedy and regular manner," but many said they would return once the situation returns to normal.

"The history, the infrastructure and the stakeholders in Tunisia are entrenched enough to be able to recover rather quickly," he said.

"Of course, how quick this would be is very much dependent on the political developments that are unfolding," he said, noting that a new government is to be announced and new elections held.

"As far as tourism is concerned, we think that in the medium term, not the long term, Tunisia will come back to what it was."

It certainly has come back strong in Thailand since the collapse of the tourist industry there in 2008-'09. Less than a year ago we were reporting how the tourist industry was still falling apart in the face of continuing political turmoil. This year tourist arrivals were up by 10.8%!

Overall, arrivals in the first nine months of the year grew by 13.3% y-o-y, an impressive recovery from the 5.0% fall in arrivals experienced in 2009.

It is a positive sign that Thailand’s tourist industry has recovered so strongly from the 2008-2009 downturn and is testament Thailand’s ongoing attractiveness as a tourist destination, despite the sporadic outbreaks of social unrest. Much of this unrest has been concentrated around Bangkok, with the coastal tourist areas largely unaffected. As such, we expect tourist arrivals will have continued to pick up, with the high season around Christmas providing a good end to the year.

In a few weeks Roland and I are going down to Mexico for a few days and we decided to spend the time in one of our favorite cities there, Guadalajara. I haven't seen any reports of violence there but the prices were unbelievably low. Airfairs were cheap and hotel rates were phenomenal. The rack rate for the place we stayed last time is around $900/night for a suite. We only the most modest bargaining, we booked it for less than $200/night this time! That's the other side of the impact of violence on tourism, which is still disastrous in Mexico

Mexico’s drug wars lead the week’s financial news again as the city’s wealthiest city, Monterrey, was hit by a spate of 23 killings along with one woman dying of a heart attack upon witnessing a massacre in the city.

Home to some of Mexico-- and the United States’ biggest companies, including Cemex (CX) and General Electric (GE), Monterrey’s income is double the national average. The state of Nuevo Leon, of which Monterrey is the capital, however, has seen at least 60 killings in 2011 alone.

The violence is not confined to drug cartels and that is what is worrying business leaders. A US company executive was abducted, beaten and robbed of his armored car earlier this year while both Fitch and Standard & Poor’s both downgraded the country’s credit rating at the end of 2009, citing drug violence.

Not-so Accidental Tourists: While cities such as Juárez and Tijuana on the northern border are used to the violence, Monterrey and Oaxaca-- which saw the third Mexican mayor killed in just the first two weeks of 2011-- are slowly becoming accustomed to it, pushing out business and tourism.

Evidence of this was news that three cruise lines, Royal Caribbean Cruises, Norwegian Cruise Lines and Carnival Corp, announced they would be ending or at least scaling back trips to Mexico from California. While none of their destinations have been affected by the drug violence, customers, they claim, aren't distinguishing between regions of Mexico and are put off the country as a whole by news of violence.

While international tourism may be dropping, there are signs that domestic tourism, or at least travel, is on the up, with the news that InterJet, a low-cost domestic carrier, signed a contract to buy 20 Sukhoi-SuperJet aeroplanes for $650m. The first deliveries are scheduled for the second half of 2012. Flights on the new planes are likely to cover Toluca to Aguascalientes, San Luis Potosi and Querétaro.

Still a problem in Madagascar though-- where only a third of tourists expected are visiting the country and where a new problem is looming for tourism: Somali pirates expanding their operations south!




UPDATE: Egypt

Tourism, which brings in aover $10 billion annually, accounts for almost 12% of Egypt's gross domestic product and directly accounts for close to one in 8 jobs. Roland and I had just arrived in Egypt in 1997 on the day after over 50 tourists were butchered in Luxor. The country emptied out of tourists and we had the whole place to ourselves. It was totally awesome for us-- problematic for the Egyptians. Right now the Egyptian tourist authorities are trying to put on a brave face and claiming most tourists go to the Red Sea resorts and that everything is hunky dory there. This sounds like bullshit and tomorrow is likely to be the biggest day of protests yet-- both bloody and possibly leading the inevitable collapse of the dictatorship. This is the most recent (Thursday) update from the State Department:

This security notice is being issued to update the U.S. citizen community in Egypt about reports that anti-government demonstrations are expected to continue through the weekend. Since the Police Day protests on January 25, there have been daily demonstrations in several areas of Cairo as well as other cities in Egypt. There have been violent clashes that have resulted in injuries and deaths among both civilian demonstrators and police forces. Several websites are posting calls for demonstrations to take place after Friday prayers on January 28. Areas where people congregate after Friday prayers should be avoided. 

While many of the demonstrations have focused on the downtown Cairo/Tahrir Square area, violent confrontations have occurred at other locations both in the Cairo metropolitan area and in Alexandria, Suez, and other cities. Traffic and the Metro system have experienced serious disruptions. Local authorities have announced that the planned demonstrations are illegal and that police will take appropriate action to prevent unauthorized gatherings. 

The Embassy urges American citizens to review their personal plans and remain alert to their surroundings at all times. Americans should avoid areas of planned demonstrations and be aware that spontaneous demonstrations can occur anywhere on short notice. If caught unexpectedly near a demonstration, Americans should obey instructions from police and leave the area as quickly as possible. Americans resident in Egypt should monitor local news broadcasts and American visitors should ask tour guides and hotel officials about any planned demonstrations in the locations they plan to visit. Americans should carry identification and a cell phone which works in Egypt. 

Although the State Department has issued recent-- meaning 2011-- travel alerts for Haiti, Tunisia, the Central African Republic, Niger, Nepal, and Sudan, there hasn't been one issued for Egypt yet.

There seems to be a conspiracy to downplay the seriousness of what's happening-- full on regime change-- in Egypt. Today demonstrations have spread to Giza and Luxor, the two top tourist sites in the country. But tourists are getting no warnings that would jeopardize the tourism industry. It's actually shocking. But pictures like this are starting to get out now and... well, no one wants to get caught in this kind of a traffic jam:



Even with a human chain encircling the Egyptian Museum to prevent looting and with tanks in the streets of Cairo (and several other cities), the tourist industry still has its collective heads in the sand and is basically saying, "everything is pretty normal for a nice swim in the Red Sea. The shark is dead. Come on in!" On the other hand, EgyptAir has stopped all flights out of Cairo.

Egypt's national carrier on Friday temporarily suspended its flights from the capital, while international airlines scrambled to readjust their schedules to accommodate a government-imposed curfew as mounting street protests presented President Hosni Mubarak's government with its most serious challenge ever.

Separately, the United States warned its citizens against any nonessential travel to Egypt and cautioned Americans already in the country to stay put. The warning came hours after Friday's anti-government protests spiraled out of control, forcing the deployment of the military which Egyptian state television said would work alongside the police to enforce the 6 p.m. to 7 a.m. curfew and restore order.

...An official at Cairo's international airport said some foreign airlines had canceled or rerouted flights slated to arrive Friday night, including Air France. The official spoke on condition of anonymity to avoid breaching instructions about contacting the media.

Air France said its once-daily flight to Cairo was rerouted to Beirut and would continue to Cairo on Saturday morning. The airline said its Saturday flight was canceled while the airline tried to amend its schedule.

And after protests erupted at virtually every tourist site in Egypt, the U.S. and Britain warned tourists away.

"If you are already in Egypt, you are strongly advised to stay put," it said. "We are not, at present, advising British nationals to leave the country."

Foreign Secretary William Hague said the safety of British nationals was "absolutely paramount".

"In light of the ongoing demonstrations in Egypt we have carefully reviewed our advice and now advise against all but essential travel to Cairo, Alexandria, Luxor and Suez.

"This does not affect transits through Cairo airport for onward travel to other destinations, and it does not cover Egypt's Red Sea resorts."

...Abta, the organisation formerly known as the Association of British Travel Agents, said it had not heard of any reports of British package tourists being affected by the unrest but said some tour operators had cancelled trips as a precaution.

Travel firm Thomas Cook said it had cancelled all excursions to Cairo this weekend from the Red Sea resorts. But it said flights were operating in and out of Sharm El Sheikh airport as normal this weekend.

British Airways has warned of changes to flight schedules to Cairo because of a curfew imposed in the capital.

Meanwhile the Egyptian Museum has been partially looted. Photos:

http://yfrog.com/hsu6aezj
http://yfrog.com/h0arrqj
http://yfrog.com/h8ijfrj
http://yfrog.com/h067787496j

Tourist agencies in the West conspired with the Egyptian Tourist industry to downplay the dangers in that country. And the US State Department and British Foreign Office both went along-- seemingly more concerned with the Egyptian tourist industry than with the safety of their own nationals. And today tourists are desperate to get out of Cairo-- and can't. Western governments are finally starting to warn their nationals.

Hundreds of people crowded the capital's main international airport hoping for a flight out on Saturday but Western carriers were canceling, delaying or suspending service after days of violent unrest.

A British airline turned around its Cairo-bound jet in mid-flight.

Between 1,500 and 2,000 people flocked to Cairo Intentional Airport, many without reservations.
Officials said that about half were tourists and half Egyptians.

British Midlands International said its flight from London Heathrow to Cairo turned around because a shift in the start of a nighttime curfew from 6 p.m. to 4 p.m. had made it impossible to land in time for passengers to make it out of the airport.

Lufthansa and Delta have both canceled their Egyptian flights. And the U.S. State Department has done an about face, going from trying to reassure nervous tourists that it was perfectly safe to travel to Egypt-- and not upset the fragile economy-- to preparing to airlift all Americans out of the country!

he American Embassy in Cairo said Sunday it is making arrangements to begin flying Americans out of Egypt on Monday, as an outbreak of mass looting added new dangers to a nation rocked by protests seeking an end to President Hosni Mubarak's rule.

The U.S. government warned that Americans should consider leaving Egypt as soon as possible as residents of Cairo were taking steps to protect themselves against the spreading lawlessness.

Mubarak thugs are trying to incite civil war and mayhem by unleashing a wave of domestic terror against the Egyptian people, including the looting and home break-ins. It is the last gasp of a crumbling tyranny.

And I bet British tourists, who were fed the same line of malarkey by their Foreign Office-- again, putting the Egyptian economy's well-being ahead of their own citizens' safety-- are pissed off as they struggle to get out while they can.

Desperate holidaymakers, heeding Foreign Office advice to leave Egypt, found flights grounded as staff abandoned their posts to join in the national protests.

Passengers who risked venturing out of their hotels to travel to the airport found scenes of complete chaos with queues of several hours snaking around the terminal buildings.

Unable to leave due to the night-time curfew, many were forced to bed down in the departure lounges.

Those stranded said the entire airport had ran out of food and water adding to the misery.

I hope Egyptians are kinder to the Bits than Brits were to travelers who were stranded in their country over the December storms when every conceivable strategy to fleece trapped passengers was carried out to the max.

Roland and I were in shock yesterday when we walked into Essaouira. It has turned into a badly developed tourist hellhole almost on a level with Antalya in southern Turkey. Both of us tend to not buy into the constant carping by westerners that everything was better before and that all the favored places around the word have been changed for the worse. We've been scoffing at that widely held notion about Marrakech, which is still wonderful-- even if more overrun with tourists than ever before. But Marrakech is a big city with the capacity to gracefully absorb the kind of change massive tourism brings. Essaouira is a small town with less than 100,000 people. We looked around and said goodbye-- a once favorite place we won't be visiting again.

I was there for the first time late in the summer of 1969-- at the same time as Jimi Hendrix's short but legendary visit. It was sleepy and charming and I fell in love with the town. Since then no trip to Morocco was ever complete without a stop in Essaouira and I've recommended it to everyone going to Marrakech. It's a 3 hour drive and now they even have an airport.

Our last visit was in 2005 and we noticed that the tourist sector had expanded uncomfortably. More and more streets were dedicated to selling cheap tourist souvenirs and more and more of the city's energy was directed towards tourism. But it didn't really seem like much of a problem and Essaouira was as charming as ever. The ensuing 5 years, however, have taken a toll... a really big one.

It seems like once the only place to stay was the legendary Hôtel des Iles just outside the city walls. Now there's a hotel or riad in every vista and restaurants everywhere. Day trippers are omnipresent and Essaouira, at least on first glance, seems lost in the mess.

We stayed all day and into the evening. Our driver was shocked we stayed so long. He said no one does-- not ever. But by the end of the day our harsh judgments had softened. Lunch at Chez Sam's was as spectacular as ever, regardless of what the clueless travelers say about it deteriorating. We've been eating there for decades. NOTHING has changed. The unbeatable fish soup is exactly as delicious as it ever was. And so is the view over the harbor.

Our friends had never been there before and had no expectations and nothing to compare it to from its glorious heyday. They LOVED it-- as much as I had in 1969, and through the '70s, '80s and '90s. Walking along with walls in the back of the town were the same little shops and studios built into those walls we always loved-- and off the horrible main streets ceded to tourism. We came across a music store fronting on a little courtyard and the young proprietor, Hamid, gave us an astounding gambri recital in the shop and then invited us back for a great drum circle in the courtyard later in the day.

Even the argan oil business and the goats in the trees phenomena have become incredibly commercialized... but to a first-timer, as wonderful as ever. And, sure, I bought some delicious argan oil to bring home for some friends, even if it's three times as expensive as it used to be.

It seems to be buried in the backpages, but you may have heard about a report on the airline industry that came out today co-authored by Dean Headley of Wichita State University. The short version: service sucks and everyone is pissed off.

More airline passengers bumped, more bags lost and fewer on-time flights. For the third year in a row, those problems grew worse for the industry, according to an annual study that rates airline quality.

"They just don't get it yet," said Headley. Who's "they" and what don't they "get?" Well, take this statement from a spokesman for the Air Transport Association: "We're going to see more delays and those delays translate to cancellations, mishandled bags and unhappy passengers," It's not a pretty picture." He doesn't expect that picture to get better soon and he blames... the weather. I think we could look for a better answer-- and solutions-- from Jonathan Tisch.

A lot of executives at my former company, Warner Bros. Records, used to stay at the Regency Hotel on Park Avenue in NYC. Before I started working at WB, an incident at the hotel became part of Warner Bros lore. One night during a series of executive meetings at the hotel all the rooms on an entire floor were broken into and 4 of our guys were robbed. The hotel handled their complaints so poorly-- practically blaming them for the problem and telling them that the hotel was too busy to help them or to even call the police-- that the Regency went from being the hotel of choice for our company to a hotel no one trusted... or stayed at. This was long before Jonathan Tisch became CEO of Loews Hotels.

In fact, reading Tisch's new book, Chocolates On The Pillow Aren't Enough-- Reinventing the Customer Experience, is almost like getting a response to the whole hideous incident. Something like that could never happen under his leadership. Tisch is one smart cookie and this latest book by him is a must read for anyone involved in marketing. But aside from being an author, CEO of Loews Hotels and one of the heads as the whole U.S. tourism industry (as Chairman of the Travel Business Roundtable for over a decade), he is also mixed up with government and politics. That's what I wanted to talk with him about when I got him on the phone last week. It isn't what he wanted to talk about.

Yeah, yeah, yeah, he's flattered people are pushing his name out there to be NYC's next mayor but he just wanted to talk with me about his ideas about customer service. He's got a great reputation as an old-fashioned-- or is it futuristic-- CEO who champions corporate responsibility and believes-- as well as acts on-- the premise that a company can do well and do good at the same time. That's a very hard line to sell to Wall Street. (He told me it's his cousin's job to talk with the Wall Street analysts, not his.)

He says tourism is 100% non-partisan and that it's part of the lifeblood of every state and every congressional district in the nation. He spends a lot of time working with government on issues critical to the tourism industry. A Democrat, in 2003 he was appointed to the Department of Commerce's U.S. Travel and Tourism Advisory Board and he was a founder of the Discover America Partnership. I asked him if the Bush Regime is trying to politicize the Board he serves on the way they have been politicizing the Department of Justice and the General Services Adminsitration. I could almost see him rolling his eyes on the other end of the line. "No," he said.

So what did Tisch have to say about today's report about the airline industry? By now you should be able to guess yourself. "It would be wonderful if the airlines could think of themselves like other parts of the travel and tourism industry, and not just in the business of transportation. These new numbers show that as a group, they may be wining the battle of profitability, but losing the war of customer service."

I don't know about you, but when I'm on a ridiculously long line 2 hours before my plane is scheduled to take off-- and it probably won't be on time anyway-- and I'm holding my shoes and praying my belt buckle won't set off an alarm and that I'll remember to take back my cell phone and keys, I'm just hating George W. Bush even more than usual. And every foreigner I've spoken to who either comes here to visit or contemplates coming here to visit, is a lot more pissed off than I am.

OK, now we're getting into Tisch's territory. Foreign tourism is down nearly 20% since Bush, at heart a paranoid, provincial hayseed and a xenophobic nativist, took over the White House. The Republicans may have once been a business friendly party but now... well, during the Bush era our economy has lost $93 billion in revenue from global tourism (and $15 billion in taxes)-- not to mention 58 million fewer visitors and nearly 200,000 lost jobs. Last week the Department of Commerce released figures that reveal that overseas travel to the U.S. remains below pre-9/11 levels in six of the top eight overseas markets-- Mexico and Canada being the two exceptions. Travel to the U.S. in 2006 fell further in five out of the top eight overseas markets. A 2006 survey of overseas travelers conducted by the Discover America Partnership found negative perceptions of the U.S. entry process to be the greatest deterrent to visiting the country. That's not pro-Business and it's not good customer service. Tourists and businessmen from Britain, Japan, Germany, France, Italy, and Brazil are opting to go elsewhere.

Friends who stay at Loews hotels swear that service and overall product are noticably improved since Tisch took the helm. I couldn't find a dissenting view. When I asked friends in NYC what they thought of Tisch as mayor, those who knew who he is were enthusiastic. By chance while I was writing this my old boss, Seymour Stein, called me to fret about the possibility of Giuliani becoming president. I assured him it wasn't going to happen and when he was calmed down I asked him about Tisch. "He's very smart and he has a good heart. His family are equestrians and they once wanted to buy my ranch. He'd be a great mayor. That Giuliani... he was the worst..."


Tisch has been a super generous contributor to Democrats over the years, although almost all of the donations have been to button down Establishment and conservative Democrats, from the Blue Dog PAC, Harold Ford, Joe Lieberman (a former Democrat), Evan Bayh, Ken Salazar, Rahm Emanuel... and (many) hundreds of thousands of dollars to the big Inside-the-Beltway committees like the DNC, DSCC and DCCC. I didn't find many contributions for Republicans other than to Mark Foley, and token donations to Al D'Amato (once a cost of doing business in New York) and Conrad Burns. This week Jonathan made a very cool contribution to Blue America: a boxful of personally autographed copies of Chocolates On The Pillow Aren't Enough. We'll be giving them away this Saturday at firedoglake as part of a live blog session with the man who represents-- among others-- Jonathan Tisch: Congressman Jerry Nadler. Come over and join us at 11AM est. The book is great.