‘Capacity to Egypt will be cut’

The latest bomb attacks in Egypt could force operators to cut capacity to the destination and consolidate regional flights, according to one Eygpt specialist.

Longwood Holidays managing director Rafi Caplin said tour operators will have to reduce capacity after three bombs exploded on Monday evening in the Red Sea resort of Dahab, killing 23 holidaymakers. Around 80 people were injured, two of them were British.

However, Caplin remained confident the destination will continue to be popular with UK holidaymakers, and argued a capacity cut would not harm the market because it had grown too large to be sustained.

He added: “There’s probably more British people in Egypt now than ever before. From our point of view, it has had less impact so far than the previous bombings.”

He said prices could also come down further, arguing that Egyptian hoteliers had become “too bullish” following the recent capacity growth.

Longwood has received some cancellations and a drop in bookings to Egypt, which he said was an understandable, immediate reaction by customers following the attacks.

Libra Holidays has also received some cancellations. Sales and marketing director Paul Riches said the problem is only short term but admitted tourists may take longer to return to Dahab than Sharm el-Sheikh because it is less well established.

The big four operators said none of their customers were affected by the bombings and agreed it was too early to say what long-term effect the explosions might have.

An Egyptian ministry of tourism spokeswoman said 825,000 UK residents visited the country last year, a 56% increase on 2004, despite the terrorist attack on holidaymakers in Taba Heights in October 2004.

She said: “Security is being tightened.”