The slowdown in tourism in the Red Sea governorate has resulted in an 80 percent drop in tourism-related tax revenues in the governorate, according to a tax official.
The decline in tax revenues started with the virtual halt in Russian tourism to Egypt after the downing of a Russian passenger jet in October, killing 224 people onboard.
The lack of Russian tourists in resort towns such as Hurghada had a massive impact on hotel occupancy and tourism activities, according to Abdel Fattah Khalifa, the governorate's chief collector of tourism taxes.
Since October, tax returns from 578 tourist facilities have receded from a monthly LE12 million to LE1 million.
Russia, a main exporter of tourists to the Red Sea, halted flights to Sharm el-Sheikh and neighboring resorts since the air crash, which was claimed by Sinai-based Islamic State affiliates.
Russia said it would resume tourist flights once the necessary improvements have been made to security measures at Egyptian airports.
Edited translation from Al-Masry Al-Youm
