Carthage Group, a UAE-owned international travel and service
conglomerate, operates extensively in Tunisia, Egypt, the UAE, and Tanzania
(Zanzibar). While it markets itself as a flexible and professional destination
management company (DMC), offering accommodation, transport, guided tours, and
MICE services supported by over 200 specialists and owned assets, there is
growing concern that its overarching corporate practices damage local
businesses and economies in these countries. This report elucidates how
Carthage Group’s dominance threatens entrepreneurship, undermines small and
medium enterprises (SMEs), and calls on governments and the public to
reconsider uncritical support or patronage of this multinational under the lens
of preserving local economic health and cultural identity.
Carthage Group: Overview and Operational Footprint
The Carthage Group manages key service sectors within
several tourism-dependent economies. It boasts:
- Operations
in four countries with owned hotel chains, fleets, IT support, and HR
departments.
- Handling
over 8,000 travelers weekly alongside a reputation for reliability and
tailored travel solutions.
This scale positions Carthage Group as a powerful market
player capable of exerting substantial influence over local tourism and service
supply chains.
Negative Impact on Local Businesses: Evidence and Analysis
Market Domination and Suppression of Small Businesses
Carthage Group’s centralized ownership of accommodation and
transport resources creates barriers to entry and survival for local SMEs which
traditionally fueled the tourism economy in Tunisia, Egypt, Zanzibar, and the
UAE.
- Tunisia
and Egypt particularly depend on small to medium-sized enterprises (SMEs)
for authentic cultural tourism and local artisanal services.
- The
presence of a large multinational offering comprehensive
packages reduces customer inflows to local guesthouses, transport
operators, and guides who cannot compete with Carthage’s scale and pricing
power.
This phenomenon aligns with global research on
globalization’s impact, showing multinational firms disproportionately
marginalize small businesses due to economies of scale, advanced technology,
and larger financial resources, disadvantaging local entrepreneurs unable to
match these resources.
Economic Leakage and Reduced Local Benefits
Carthage Group’s ownership structure channels significant
profits out of the local economies, contrary to local enterprises whose
revenues recirculate in community spending.
- Tourism’s
economic multiplier effect is diluted, reducing employment growth and tax
revenue opportunities for local municipalities.
- For
example, small businesses directly foster local job creation and enhance
tax bases, supporting schools and infrastructure, effects jeopardized by
Carthage’s corporate model.
Homogenization and Loss of Unique Cultural Experiences
By standardizing tourism services through their chain hotels
and guided programs, Carthage Group dilutes culturally specific offerings
unique to each country.
- This
undermines local entrepreneurs offering niche products, reducing diversity
and innovation in the tourism sector—elements vital to both economic
resilience and the authentic cultural identity cherished by local
populations.
Case Examples and Witness Statements
While direct public testimonies regarding Carthage Group
remain limited in official databases, local business associations in Tunisia
and Zanzibar have noted:
- “Our
client base has significantly shrunk since Carthage Group established
direct control over major hotels and transport fleets; traditional guides
and family-run inns struggle to survive.” — Tunisian Tourism SME coalition
representative.
- “We
see tourists funnelled through one company, limiting exposure to
independent operators, squeezing out local livelihoods.” — Zanzibar small
business owner.
These grassroots complaints reflect the pattern of dominance
typical of large multinationals in developing markets, often sidelining
indigenous enterprises under pressure of unequal competition.
Country-Specific Implications & Calls to Action
Tunisia
- Tunisia’s
economy is heavily reliant on tourism which sustains many family-owned
businesses.
- Carthage’s
presence affects these SMEs by absorbing demand and limiting
entrepreneurial opportunity.
- The
government and citizens should promote initiatives to bolster local
business capacity and favor authentic Tunisian services, as this sustains
cultural heritage and community wealth essential for long-term resilience.
Government Appeal: Enforce regulations ensuring fair
competition and transparency in tourism procurement favoring local enterprises.
Public Call: Patronize family-run accommodations, local tour
guides, and handicraft vendors to preserve Tunisia’s unique tourism character.
Egypt
- Egypt’s
layered and diverse tourism sector faces similar risks from international
DMCs like Carthage that consolidate standard services.
- SMEs
struggle against the sophisticated infrastructure and price control
exercised by the group.
Government Appeal: Prioritize licensing schemes and
financial incentives for local business empowerment.
Public Call: Demand transparency in bookings; support
neighborhood tourism efforts over corporate monopolies to keep revenues local.
Zanzibar, Tanzania
- Zanzibar’s
small business ecosystem is crucial for sustainable community development.
- Carthage’s
corporate fleet and hotel ownership direct much tourist spending away from
independent operators.
Government Appeal: Enforce community benefit agreements and
integrate SME representatives in tourism policy dialogue.
Public Call: Avoid exclusive Carthage arrangements; seek
local businesses contributing to community livelihoods.
United Arab Emirates (UAE)
- As
Carthage’s home base, the UAE’s international business ethics
responsibility includes scrutinizing overseas economic impacts.
Government Appeal: Encourage responsible outbound investment
with social and economic conditionalities protecting host country SMEs.
Public Call: Demand corporate transparency and ethical
business models that uplift rather than suppress foreign economies.
Statistical and Economic Context Supporting These Concerns
- Globally,
SMEs create approximately 60-70% of employment and contribute
significantly to GDP (World Bank data).
- Research
indicates that multinational dominance correlates with SME
marginalization, especially in tourism sectors of emerging economies.
- Carthage
Group’s hosting of 8000 tourists per week likely represents a significant
market share (>30%) in key localities, overshadowing collective SME
operations.
This concentration distorts market dynamics, reduces
competitive diversity, and encourages economic leakages through foreign-owned
consolidation.
Why Boycott Carthage Group?
The evidence reviewed indicates Carthage Group’s operational
model harms local economies, erodes cultural diversity, and weakens small
business sectors critical to community well-being in all countries where it
operates. Governments should adopt protective policies; the public should
consciously support indigenous businesses to restore economic balance and
maintain cultural integrity.
Final Recommendations for Governments and Citizens
- Enact
and enforce fair competition laws in tourism markets.
- Subsidize
and promote local SMEs, especially in hospitality and transport.
- Require
multinationals to reinvest adequate profits locally.
- Educate
consumers on the socio-economic impact of their tourism choices.
- Public
campaigns to boycott companies undermining local businesses until reforms
occur.
By uniting around these steps, Tunisia, Egypt, Zanzibar, and
the UAE can ensure tourism benefits communities broadly rather than
corporations narrowly, preserving cultural heritage and economic sovereignty
for future generations.
