And according to Egyptian Finance Minister Dr Mohamed Maait’s statements yesterday, the sector is expected to achieve record revenues this year amounting to 14 billion dollars (the dollar is equivalent to 30.9 Egyptian pounds), compared to 10.7 billions of dollars. during the last fiscal year.
The sector’s average revenue in recent years was between $11 billion and $12 billion, according to Egyptian Prime Minister Dr. Mostafa Madbouly’s statements last September.
Tourism revenue in Egypt decreased by more than 66% in 2020 in light of the Corona pandemic crisis and travel restrictions, registering only $4.4 billion, compared to more than $13 billion in 2019 While he recouped around 68% of revenue in 2021.
In light of these indicators, and in light of the government’s interest in supporting and developing the sector, to what extent is Egypt able to achieve the above target? What are the main challenges you face in this path?
Boom in the current tourist season
At the start, the head of the Tourist Syndicate, Bassem Halqa, said in exclusive statements to “Economy Sky News Arabia” that:
This year’s tourist season is one of the highest seasons in recent years in terms of income (taking into account the impact of various factors related to the repercussions of the war in Ukraine). It amounts to approximately $14 billion made so far and before the end of the 2022-2023 financial year. In the previous fiscal year 2021-2022, $10.7 billion was achieved. I believe that by the end of next month and the start of the new fiscal year in July, the revenue rate should increase.
He continues: “It is proof that the tourism sector in Egypt has successfully absorbed the economic shocks that have taken place in the world due to the effects of the war in Ukraine”, stressing that “the tourism sector has started to compensate for the loss of Ukrainian tourism and a large part of Russian tourism, which represented nearly 35% of the volume of tourism before the war… we are beginning to compensate for this loss through other markets. »
The head of the Tourist Syndicate points out that the Egyptian state relies heavily on the sector to support the economy in order to provide and improve cash reserves, explaining that reaching the target of 30 billion dollars per year of revenue from the sector “is working gradually”. .and they are able to implement it.”
In his statements to the site “Sky News Arabia Economy”, the leader of the sector returns to several theses which were discussed during the national dialogue sessions in Egypt, referring to the call of the investment authority to present opportunities investment in three-star tourist hotels, which is also an important nerve for tourism, to the public. The basis is that many tourist facilities are at the four- and five-star level.
There is a tendency to discuss the idea of operating closed residential units and buildings to convert them into hotel rooms which help to accommodate more tourists, and be under the supervision and monitoring of the Ministry of Tourism. Banks also tend to encourage hotel establishments under construction and not completed due to the speed of their completion so that they add value to the number of hotel rooms in Egypt. Extension of the electronic visa to facilitate access to Egypt. Facilitate the ease of obtaining licenses and approvals with respect to nautical tourism, which is one of the most important forms of tourism with the highest expenses and revenues.
He concluded his speech by noting that there is great interest on the part of the Egyptian state in this file, “and we, as leaders in this sector, see that Egypt is capable of achieving the objectives which is just the beginning, and we can achieve higher rates in future periods.”
The Egyptian government has recently included the tourism sector in the initiative it announced earlier in the amount of 150 billion dollars to support the productive sectors (agricultural and industrial) with an interest rate of 11%, bringing the value of the initiative at 160 billion pounds after including tourism.
Basic requirements
For his part, a member of the Egyptian Federation of Chambers of Tourism, Dr. Hossam Hazaa, identifies in exclusive statements to “Economy Sky News Arabia” the main factors that the sector needs to achieve its own objectives by 2028, as following :
The sector is on track to reach a revenue target of $30 billion per year in 2028. We need a gradual annual increase in capacity from 210,000 rooms to 500,000 rooms. We also want to modernize transport fleets. And increase the number of hotels and floating hotels.
At the same time, the tourism expert stresses the importance of investment incentives in the sector, facilitating the access of investors and businessmen to loans at reduced rates, in addition to tax exemptions at the start, and that there is no arbitrary taxation.
Optimism to achieve goals
The strategy of the Egyptian state aims to reach 30 million tourists in 2028 and to achieve a growth rate of 25 to 30% per year in the volume of incoming tourism.
For his part, Egyptian tourism expert, Mohamed Karem, said in exclusive statements to “Economy Sky News Arabia” that Egypt’s opportunities look great in terms of tourist attractions, be it during the summer season. or the different seasons to come, especially in light of the interest of political leaders in the sector, as well as the presence of some relatively new forms and models of tourism that have entered the tourism agenda, such as tourism of yachts and the tourism of the Way of the Holy Family.
Egypt has the elements of tourist attractions, while the infrastructure boom is helping to support the sector’s aspirations to achieve key goals.
He added, “All of this greatly helps in the coming period to bring the tourism sector back strongly,” stressing that it should meet the sector’s revenue targets of $30 billion per year and before the target date. of 2028, in light of developments in the sector.
Estimates from the International Monetary Fund point to a possible gradual increase in tourism revenue in Egypt over the next five years, to reach $28.8 billion by fiscal year 2027-2028, a jump of around 155% compared to expected revenues in the current fiscal year.
$18.9 billion in 2024-2025 $22.8 billion in 2025-2026 $26.5 billion in 2026-2027 $28.8 billion in 2027-2028
The tourism sector in Egypt contributes up to 15% of economic output and is therefore considered one of the most important sources of foreign exchange, in addition to Suez Canal revenues, export earnings and remittances. funds of Egyptians abroad.
The tourism expert highlights the state of momentum around the sector in the national dialogue discussions in Egypt, on the basis that all proposed mechanisms, projects and laws related to the tourism sector are discussed by parties, associations and those interested in the sector and those working in it, in a way that helps present many visions for the development of the sector by all parties.
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