A strange situation has arisen for 11,000 tourists who arrived in Egypt through a European travel company, which announced its bankruptcy shortly after the tourists landed in Cairo, without settling their dues and costs to Egyptian hotels and facilities.
Egypt's Minister of Tourism, Ahmed Issa, met with the ambassadors of Germany and Austria to discuss the status of the tourists who booked their trips with a company called "FTI," currently present in various Egyptian tourist destinations, as well as the situation regarding the financial dues of hotels and tourism companies in Egypt.
According to Egyptian authorities, the number of tourists present at Egyptian tourist destinations following the announcement of the company's bankruptcy was 11,000, which has now decreased to fewer than 5,000 tourists.
On Monday, the Egyptian Ministry of Tourism revealed that the company's name is "FTI" and that it is the third largest tourism company in Europe. It filed for insolvency in the Munich District Court in Germany due to significant debts, leading to its bankruptcy.
European media reported that a famous Egyptian billionaire owns 75% of the company's shares, and it was noted that the company received over €595 million in government aid from Germany during the Covid-19 crisis, as well as substantial support from businessman Naguib Sawiris in 2020 when he increased his stake in the company to 75%.
The Egyptian businessman first invested in the company in 2014 by purchasing 25% of its shares as part of his efforts to expand outside of Egypt.
German newspapers revealed that the company failed last weekend to secure government support to avoid bankruptcy, with a spokesman for the Ministry of Economic Affairs stating that the government would not intervene to save the company due to budgetary and economic constraints, especially since the company had previously received government aid.
During the meeting, the Egyptian minister discussed the situation of tourists who booked their trips to Egypt with the company and are currently at various tourist destinations, ensuring they receive the services promised according to their contracts. He also addressed the dues owed to hotel establishments and tourism companies in Egypt contracted with the bankrupt company and how they could receive their payments.
The German ambassador in Egypt confirmed that an insurance company and another fund linked to the German government pledged to cover the costs, indicating that all expenses incurred by the hotels and tourism companies in Egypt booked by the tourists as part of their trip programs with the company are protected and will be compensated.
The Egyptian minister urged the ambassadors to expedite the necessary procedures for the German travel insurance fund to pay all dues owed to the Egyptian hotels and tourism companies that have tourists associated with the bankrupt company's programs.
