Egypt offers incentives to boost tourism

Airlines and operators are being offered incentives to fly to Egypt in a travel recovery plan following political unrest which hit the tourism-dependent country.

The North African country is anxious to stimulate demand and stop carriers from slashing capacity.

EasyJet and Tui Travel confirmed the incentive, which started at the beginning of March and is open-ended.

The new Egyptian government could pay incentives that run to more than $100 million over the course of the year.

The offer is reported to come in the form of a cut in a levy charged to airlines worth about $5 per passenger, or as payments to carriers for unfilled seats to discourage them from cutting numbers of flights to Egypt or deploying smaller aircraft that carry fewer passengers.

"We think the incentives being offered by the Egyptian government, hoteliers and tourist boards are very positive," said a Tui Travel spokeswoman, adding that the company was working to encourage holidaymakers to return with  a range of price cuts.

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