2024-09-16 09:59:33
After the Covid-19 crisis, the terrorist attacks of 2015 and the revolution of 2011, the travel agency sector is starting to catch its breath. All current indicators are positive and reflect significant progress. Encouraged by this recovery, travel agencies are starting to want to reinvest in human resources, rolling stock and promotional and communication costs. Unfortunately, the latter are suffering terribly from four major economic issues. Houssem Ben Azouz, president of the Interprofessional Federation of Tunisian Tourism (Fi2T), sheds more light on the subject.
Travel agencies in Tunisia are under significant economic pressure, Houssem Ben Azouz, president of the Interprofessional Federation of Tunisian Tourism (Fi2T) and manager, since 2024, of a travel agency specializing in adventure tourism (hiking), ecotourism and cultural tourism, explained that after the serious health crisis of Covid-19, preceded by the terrorist attacks of 2015 and the revolution of 2011, the travel agency sector is beginning to catch its breath, given the good recovery of tourist activity both nationally and internationally.
Major cyclical issues
“All current indicators are positive and show significant progress: number of entries, revenue, overnight stays, etc. Encouraged by this recovery, agencies are starting to want to reinvest in human resources, rolling stock and promotional and communication costs. Unfortunately, travel agencies in Tunisia are suffering terribly from four major economic problems,” explains Ben Azouz. He first recalls the removal, in 2024, of customs and tax advantages for the acquisition of microbus (12 to 16 seats) and minibus (27 seats) tourist vehicles. “This advantage was removed in the 2024 finance law, under pressure from who knows what lobbies, on the pretext that this type of vehicle is produced or assembled in Tunisia. However, after verifications and joint investigation with the supervisory authorities, the micro buses and minibuses produced or assembled in Tunisia are not satisfactory either quantitatively or qualitatively,” certifies Ben Azouz.
“Moreover, the prices of this type of rolling stock, crucial for our activity, have doubled or even tripled. Added to this, many travel agencies will be unable to renew their microbus and minibus fleet. I would like to remind you that the preferential tax regime for the acquisition of rolling stock by travel agencies aims to encourage investment in the tourism sector, which is an important pillar of the Tunisian economy. By reducing vehicle acquisition costs, these advantages allow agencies to invest more in their fleet and improve their services. Without encouragement, the microbus and minibus fleet will certainly deteriorate in the short and medium term,” continues the president of Fi2T.
Unfair competition
According to him, there is a lot of unfair competition in the travel agency sector. “We see a multitude of offers of tourist products provided by illegal structures. Tourist services for national and international tourists can only be legally provided by approved travel agencies, and this, in the interest of the tourist. However, we see a large number of service companies, associations… which offer packages and tourist excursions in Tunisia and abroad. Our activity is not really protected because our supervisory authority cannot intervene against these intruders on the pretext that these actors are not under its own supervision. I also believe that these pirate structures do not provide customers with the same guarantees required of approved travel agencies such as insurance, capital or skills,” explains our interlocutor. Ben Azouz also assures that the various crises cited (2011 revolution, 2015 terrorist attacks and Covid-19) have caused a serious shortage of tourist staff in all kinds of professions, namely: professional guides, drivers, counter agents, hotel staff, etc. “The seasonality of the activity, low salaries, retirements, etc. aggravate this problem,” he mentions.
And he continued: “The lack or absence of cleanliness in most of the country, including tourist areas, is not at all compatible with a country that claims to be touristy. Also, the continued devaluation of the dinar affects our margins and increases the costs of importing equipment necessary for our activity. Our federation as well as the supervisory authority (Ministry of Tourism and ONTT) strongly recommend denominating commercial contracts with tour operators in foreign currency and not in dinars. This is one more reason not to eliminate the advantages granted since the launch of the sector,” explains Ben Azouz.
According to him, the federation is still working for close collaboration with the supervisory authority, because “it is only through a true public-private partnership that we will be able to resolve the problems of the sector and tackle the economic difficulties through major structural reforms. Moreover, it is important to point out that the structural reforms that are pending remain essential for the sector. This mainly concerns the reform of the product through the correction of the defects of the hotel product and the diversification of tourist products, the reform of the governance of the sector, the modern marketing of the destination. I remind you that 99% of the tourism sector is managed by the private sector. These private entrepreneurs deserve to be better listened to and more involved.”
Houssem Ben Azouz assures that with the appointment of Mr Soufiane Tekaya at the head of the Ministry of Tourism, Fi2T confirms its commitment to collaborate with its supervisory ministry for better development of the sector.
“For several years now, we have noticed a significant change in the choices and demands of Tunisian consumers, in terms of tourism and travel. Such a change requires us to take into consideration all the new data in order to evolve towards maturity and better satisfaction of this national demand. It should be remembered that the national tourist market represents 25% of hotel nights and 70% of nights in alternative accommodation such as guest houses, rural lodges, campsites, etc. These shares continue to increase and prove that the national tourist demand is no longer that of the 80s and 90s. Of course, it must also be recognized that this offer attracts wealthy socio-professional categories who can afford to spend substantial budgets. Unfortunately, since the launch of tourism in our country in the 70s, 80s and 90s, the middle and working classes have been omitted from the State’s strategies. The latter does not have adequate accommodation structures in place such as campsites, holiday villages, holiday vouchers, etc.,” says Ben Azouz.
In conclusion, he declared: “We are confident in the recovery of the sector and we hope that the supervisory authority and the other state structures concerned will listen to resolve the cyclical and structural problems previously mentioned, because without this I do not see how Tunisia will be able to occupy the place it deserves and face to increasingly tough international competition.”
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– What are the main economic challenges facing Tunisia’s travel agency sector post-Covid-19?
Table of Contents
Tunisia’s Travel Agency Sector: Recovery and Challenges
After the devastating impact of the Covid-19 pandemic, terrorist attacks of 2015, and the revolution of 2011, Tunisia’s travel agency sector is finally showing signs of recovery. With promising indicators such as an increase in tourist entries, revenue, and overnight stays, travel agencies are eager to reinvest in human resources, rolling stock, and promotional and communication costs. However, despite this positive outlook, the sector is facing significant economic challenges that threaten to hinder its progress.
Economic Pressures Facing Travel Agencies
Houssem Ben Azouz, president of the Interprofessional Federation of Tunisian Tourism (Fi2T) and manager of a travel agency specializing in adventure, ecotourism, and cultural tourism, highlights the four major economic issues affecting travel agencies in Tunisia. The first challenge is the removal of customs and tax advantages for the acquisition of microbus and minibus tourist vehicles. This advantage was eliminated in the 2024 finance law, allegedly under pressure from certain lobbies, citing the production or assembly of these vehicles in Tunisia. However, investigations have revealed that the quality and quantity of these vehicles are not satisfactory.
Rolling Stock Crisis
The prices of microbuses and minibuses, essential for the travel agency sector, have doubled or even tripled, making it difficult for many agencies to renew their fleets. This crisis is further exacerbated by the lack of suitable alternatives, leaving travel agencies struggling to maintain their operations.
Other Challenges
In addition to the rolling stock crisis, travel agencies in Tunisia are facing three other significant economic challenges:
- Financing: Access to financing for travel agencies remains a significant obstacle. Banks are often reluctant to lend to travel agencies, citing the high-risk nature of the business.
- Competitiveness: The travel agency sector in Tunisia faces stiff competition from foreign operators, who often enjoy more favorable business environments and lower operational costs.
- Regulatory Framework: The regulatory framework governing the travel agency sector in Tunisia is often outdated and inefficient, leading to bureaucratic hurdles and unnecessary costs for travel agencies.
Way Forward
To address these challenges, the Tunisian government and the travel agency sector must work together to find solutions. This includes reinstating the customs and tax advantages for the acquisition of microbus and minibus tourist vehicles, providing access to financing for travel agencies, and creating a more competitive business environment. Additionally, the regulatory framework governing the sector must be updated to reflect the current needs of travel agencies and promote their growth and development.
By addressing these challenges, Tunisia’s travel agency sector can continue its recovery and capitalize on the country’s rich cultural and natural heritage to become a leading tourist destination in the region.
Keywords: Tunisia, travel agency sector, recovery, economic challenges, rolling stock crisis, financing, competitiveness, regulatory framework.
What factors are contributing to the recovery of Tunisia’s travel agency sector?
Tunisia’s Travel Agency Sector: Recovery and Challenges Ahead
After years of turmoil, Tunisia’s travel agency sector is finally showing signs of recovery. The industry, which has been severely impacted by the COVID-19 pandemic, terrorist attacks, and the 2011 revolution, is now witnessing a significant uptake in tourist activity. However, despite this positive trend, travel agencies in Tunisia are still facing major economic challenges that threaten their survival.
**Positive Ind
