Stat of the day: £30m

How much Tui Travel stands to lose as a result of the unrest in Egypt and Tunisia.

by Elizabeth Anderson
Last Updated: 09 Oct 2013
As the stand-off between protestors and pro-government forces continues in the Egyptian city of Cairo, the economic repercussions are being felt from afar – not least by the tourism industry. Tui Travel, Europe’s largest travel operator and owner of Thomson Holidays, is warning that the social unrest in Egypt and Tunisia could cost the company up to £30m in lost revenue in the second quarter.   

Tui said the situation in Egypt, which has seen days of protests in Cairo, will cost the company at least £20m - while the unrest in Tunisia is expected to cost it a further £5m in lost sales.

The warning comes on the day the travel operator released its earnings for the three months to December (the company’s first quarter); it managed to cut its losses from £166m to £134m, with revenues climbing from £2.5bn to £2.7bn.

Tui has now cancelled holiday bookings for Egypt from some countries across Europe; although it’s still allowing bookings from the UK for Red Sea resorts such as Sharm el-Sheikh. But with Cairo out of bounds, and all that adverse publicity from the recent shark attacks, it’s no wonder Tui is having to offer some heavy discounts to entice sun-seeking Brits…

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