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Thousands of tourists face unprecedented crisis in Egypt as European tour operator files for bankruptcy

A bizarre and unprecedented situation has left thousands of tourists stranded in Egypt after the European company that sent them there declared bankruptcy.

The German travel and tourism group FTI’s bankruptcy has thrown the itineraries and payments of 11,000 tourists in Egypt into disarray.

Minister of Tourism and Antiquities Ahmed Issa met with the German and Austrian ambassadors to address the crisis and ensure tourists receive the services they paid for.

The meetings aimed to assess the situation of tourists currently in Egypt on FTI Group packages, ensure they receive promised services, and address the outstanding payments to Egyptian hotels and tourism companies

The Ministry of Tourism and Antiquities has been in close communication with the Egyptian Tourism Federation and has been informed by the German ambassador that FTI Group had insolvency insurance, safeguarding the dues of Egyptian hospitality establishments.

The measures taken by the Ministry to deal with the current situation in this regard were also reviewed, including continuous communication with the Egyptian Federation of Tourist Chambers, and providing it with the details of the official letter sent by the German ambassador in Cairo to the Ministry.

He confirmed that FTI had provided insurance against insolvency through the German Travel Insurance Fund, which guarantees that all costs of hotel establishments and Egyptian tourism companies that tourists have booked as part of their travel program with the company are protected and will be compensated.

What was done by the Central Administration for Hotel Establishments, Shops, and Tourism Activities in the Ministry was discussed, as a main operations room was formed in the Red Sea, and mini-operations rooms in the rest of the Egyptian tourist destinations. In addition, committees were sent from the Central Administration for Inspection and Traffic, in order to determine the situation and the company’s tourists on the ground, in addition to full coordination with the consulates and embassies of these tourists in the Red Sea.

Upon the announcement of FTI Group’s bankruptcy, there were 11,000 FTI Group tourists in various Egyptian destinations. As of now, the number of FTI Group tourists in Egypt has decreased to less than 5,000, according to the ministry’s announcement.

During the meeting, it was also reviewed that the Egyptian General Authority for Tourism Promotion held a number of virtual meetings with professional partners from companies operating in European tourism markets, to inform them of the measures taken by the Ministry to preserve the rights of tourists, hotel establishments and Egyptian tourism companies in accordance with the contracts concluded with the FTI Group.

For his part, the Egyptian Minister of Tourism called on the ambassadors to expedite the completion of the necessary procedures for the German Travel Insurance Fund to pay all dues to hotel establishments and Egyptian tourism companies that have tourists affiliated with FTI’s tourism programs.

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