$14.5 billion in expected revenue.. The latest developments in tourism in Egypt

The city of El Alamein has recently highlighted the growing numbers of incoming tourism to Egypt in the recent period, especially after the end of the closures due to the Covid-19 pandemic, which greatly affected the tourism industry all over the world, and according to a number of reports by international agencies, including the American agency Fitch Solutions, it is expected to continue the state of recovery witnessed by the tourism sector in Egypt.

Incoming tourists

The Egyptian Center for Thought and Studies reported that there is a remarkable growth in the number of incoming tourists by 117.5% in 2021 on an annual basis, to reach 8 million tourists compared to 3.7 million tourists in 2020, with the continued flow of tourist delegations during 2023 to higher levels than it was before the Covid pandemic. -19 in 2019, as a result of taking advantage of the pent-up demand for travel after the closures and the end of the peak repercussions of the Russian-Ukrainian crisis.

Fitch expects an increase in the number of arrivals to Egypt by 11.6% on an annual basis, with the number of arrivals reaching 13.1 million in 2023 compared to 11.7 million arrivals in 2022, which will be reflected in tourism revenues, which are expected to rise to about $14.4 billion compared to $13 billion. during the same period.

Increase in tourist arrivals

Expectations are for the continuation of the increase in tourist arrivals to Egypt in the medium term during the period (2023-2027) to reach 15.2 million arrivals, with an average annual growth rate of 5.4% on an annual basis during the forecast period, and thus international tourism revenues will increase, in line with the increase in the number of arrivals. arrivals, from $14.4 billion in 2023 to $17.4 billion in 2027, supported by improved consumer spending; The low exchange rate of the local currency contributed to reducing the cost of the tourist product for the foreigner, including hotels, restaurants, archaeological sites and transportation, which enhances the country's attractiveness as a competitive tourist destination.

Hard currency in Egypt

In a study prepared by the Egyptian Center for Thought and Studies, tourism is considered one of the most important sources of hard currency in Egypt, as it contributes significantly to the domestic product and provides job opportunities, and is one of the most important sources of annual income in foreign currencies for the Egyptian government. According to official reports, the volume of tourism revenues in Egypt exceeded $14.4 billion in 2022, reaching its highest rate ever since 2010. The following figure indicates the development of the volume of tourism revenues during the period (2010-2022).

According to the study, the European market is the largest in terms of the number of tourists coming to Egypt, with Russian tourists coming first, followed by German, British, French and Italian tourists. Tourism in Egypt is distributed in several regions, including Cairo, Luxor, Aswan, Giza, the Red Sea, Sinai, Fayoum, the New Valley and the lake.

Egypt also aims to increase tourism sector revenues from the average currently estimated at $14.4 billion annually, to $30 billion annually over the next three years, according to statements by Prime Minister Mostafa Madbouly. Therefore, the Egyptian government is working on implementing a plan to restore tourism in the country, and supports policies and programs. To improve tourism infrastructure and better advertise the country in international markets, the tourism industry in Egypt is expected to return to growth with the gradual improvement of the health situation and the easing of travel restrictions around the world.