Bazaars turn to tombs on the backs of price hikes

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Bazaars turn to tombs on the backs of price hikes

Post by DJKeefy »

Bazaars turn to tombs on the backs of price hikes and the tourism crisis.

Khaled El-Saadany, head of the Tourism Goods Division at the Cairo Chamber of Commerce, said that the prices of goods increased three fold compared to 2015, especially following the flotation of the pound.

He pointed an accusatory finger at the 2015 decision to ban imports of folkloric goods or other goods that are produced in Egypt by the former minister of trade and industry Mounir Fakhry Abdel Nour.

El-Saadany explained that there are 40 workshops in Egypt which cannot replace the products imported by bazaar owners, especially as they produce lower quality goods.

He added that the tourism market requires 10,000 pieces per month when it is active, noting that the Industrial Development Authority, which aims to empower local production, does not produce the number of goods they need, and if it did the price would be 20 times more than the imported version.

El-Saadany said that investments in the field dropped by 95%, warning against the continuity of the current situation. “This would lead the value of assets to drop,” he said. “Bazaar owners try to reduce the value of their shops by over 80% to escape the current situation.”

He added that the government is not offering help. “They cut the lights of bazaars in Hurghada when they are behind on their bills.” He explained that the support designated to the sector is only channelled to hotels and companies.

Moreover, he said that 30% of bazaar owners have closed shop entirely, while over 50% closed their shops temporarily until the situation improves.

“Only 20% are now working, with almost no sales,” El-Saadany said. He estimated the number of registered gift shops and bazaars at 30,000.

The secretary general of the Chamber of Tourism Goods of the Federation of Egyptian Chambers of Commerce, Mohamed Abbas, said that there is almost no demand on sales in light of the current tourism crisis.

He pointed out that the chamber is unable to support bazaar owners, as they have not received approval from the Ministry of Tourism regarding a proposed EGP 5bn support package.

Abbas added that the sector is waiting for the tourism inflow to revive, noting that prices have not yet reflected the recession.

Aly Ghoniem, former head of the Chamber of Tourism Goods of the Federation of Egyptian Chambers of Commerce, said that bazaars are struggling with the lack of tourism.

He pointed out that shops are ready to sell locally-produced goods, but only when tourism recovers. He explained that these shops usually sell to foreign tourists because there is no demand for such products among Egyptians.

Ghoneim said that the deteriorating situation has forced bazaar owners to stop paying their chamber fees because they cannot afford it. “Some even bought tuk-tuks to earn their living and closed down their shops,” he said.

Source: http://www.dailynewsegypt.com/2017/01/05/608517/


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Re: Bazaars turn to tombs on the backs of price hikes

Post by Major Thom »

How Bazaar!
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Re: Bazaars turn to tombs on the backs of price hikes

Post by carrie »

Also nothing new there Keefy, the shop owners in the souk are desperate but have been for some time.
Some friends and I went to buy scarves the other day, the nicest where made in India from Egyptian cotton. How can it be more profitable to export cotton to India have it made up and then brought back here for sale?
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Re: Bazaars turn to tombs on the backs of price hikes

Post by crewmeal »

So my Egyptian cats will cost a fortune this year? :tk
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Re: Bazaars turn to tombs on the backs of price hikes

Post by A-Four »

carrie wrote:Also nothing new there Keefy, the shop owners in the souk are desperate but have been for some time.
Some friends and I went to buy scarves the other day, the nicest where made in India from Egyptian cotton. How can it be more profitable to export cotton to India have it made up and then brought back here for sale?
Like anything Carrie, there is quality and quality. Most people in the UK will accept bed sheets at 150 threads, even John Lewis stores stock very few higher than 200, though the finest quality has more than 1000 thread, though the price for such quality is through the roof in the U.K.

Often I have looked for such quality where the world's finest cotton is produced, and to get it at a reasonable price, but still have not been successful yet.
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Re: Bazaars turn to tombs on the backs of price hikes

Post by Hafiz »

I think that Khaled El-Saadany and the truth are strangers.

He says the prices of goods increased 300% in 12 months. Really. Has anyone noticed this?

He says the cost of imported goods, presumably like for like, is 1/20th the cost of the local product. Egypt is a low wage country and these products are labour intensive so where are the wages 10% or 5% of Egypt’s. Like to know.

He complains that electricity is cut off when people don’t pay their power bill. As if this is exceptional.

Generations of government subsidies and daddy knows best have addled their brains. He can’t think clearly let alone in his own interests and its always someone else’s fault. The only ones missing from this blame game are the US imperialists and the Jews. :urm:

No one doubts that traders are in trouble but with industry leaders like this no wonder.

Maybe there are problems, including industry leadership, which the current circumstances provide an impetus to solve. For example the training of artisans, the packaging and posting of purchases, the use of historically accurate designs, the diversification of products and products people want, market research,the employment of skilled modern designers in some product lines, are there opportunities in internet retail, how to value add, the method of awarding concessions to certain traders, including the hatted one, the lack of young people and fresh ideas and training in customer service. Maybe there should be consolidation around fewer and bigger retailers. Maybe a whole lot of traders should get out of the industry. Maybe change is a good thing.

There is a reason why, when you go to Rome or Athens you don’t feel obliged to buy a 5kg alabaster of Augustus or Alexander. Least of all from someone chasing you down an alley. :roll: In Istanbul do they try and sell you replicas of Hagia Sophia?

Why is it that the Met can make good money from selling high priced Egyptian replicas to the world? They are high quality, easily portable, beautifully packaged and sold by knowledgeable and discreet staff.Their product line Is based on what people want to buy not on what the Met wants or what sold 30 years ago. On the other hand the Met is a famous Jewish hangout so maybe it is an international Jewish conspiracy. :mo

On cotton, after years of government regulation and assistance its on its last legs. In the past year exports declined by over 50% and are one quarter the level of 16 years ago. Land planted to cotton has declined by 97% since the 60’s. As is often the case subsidies and state planning have only made things worse. So you have a product where, almost uniquely, Egypt has traditionally led the world and has a competitive advantage and look what happens. Maybe they need a new shiny Chinese built Cotton City or the leadership of the bereft Khaled El-Saadany. http://www.al-monitor.com/pulse/origina ... crops.html

Unfortunately for poor Egyptian farmers the cotton story is but one of many wasted agricultural opportunities.
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