On October 23, 2023, Egypt announced its ambitious goal to revive its tourism to a greater feat, and Egypt expects to attract an annual influx of 30 million tourists until 2028. This announcement comes after an assembly led by the Minister of Tourism. The Minister of Antiquities, Mr. Ahmed Issa, presented and discussed Egypt’s comprehensive methods and projects to achieve this purpose.
The new plan to breathe life into the tourism industry, which has been hit hard by COVID-19 and the Russia-Ukraine conflict, has several key steps. They will virtually double the number of hotel rooms, increasing the number of seats on airplanes. , invest in advertising, and try to improve the guest experience. Issa, speaking at a convention at the American Chamber of Commerce in Egypt on Monday, said:
“We just want 300,000 rooms, $30 billion in room investment and probably a similar amount of investment for the delight of guests. Spread the word and you’ll see it’s a wonderful industry to invest in. “
Minister Issa stressed the importance of fostering effective partnerships between the ministry and foreign airlines. This collaboration aims to address industry considerations and increase the annual seat capacity of airlines serving visitors to Egypt.
In 2020, Egypt saw a significant drop in the number of tourist arrivals, which fell to 3. 7 million, down from around thirteen million in 2019. The sector experienced a partial recovery in 2021, with around 8 million visitors. Although the full statistics for the 2022 total are not yet available, in the first part of the year five million tourists arrived in Egypt.
Revenues from Egyptian tourism, a source of foreign exchange, fell to $4 billion in 2020 from around $13 billion in 2019, before recovering to $9 billion in 2021. This sector is even more vital now that Egypt is facing an economic crisis triggered by Russia. invasion of Ukraine about a year ago. In addition to the loss of tourism revenues, the shock has led to huge capital outflows, higher food import costs, and skyrocketing inflation.
As part of a condition for a $3 billion loan from the International Monetary Fund, Egypt pledged to adopt a flexible exchange rate system, which has led to a depreciation of the Egyptian pound against the U. S. dollar over the past year.
Issa, who undertook a cabinet reshuffle in August, sees prospects for private-sector-led tourism growth, even in the face of economic challenges. Unlike his predecessor, Khaled El Enany, who came from an Egyptologist and an academic background, Mr. . Issa brings a wealth of experience from his 25-year career at the International Commercial Bank of Egypt, where he held senior positions including Chief Financial Officer and General Manager of Retail Banking.
“I’ve built my career on solving challenges,” Issa said. I wonder if this is a supply-side factor or a demand-side challenge. “
Despite Egypt’s wealth of assets, with 2,000 archaeological sites and six UNESCO World Heritage Sites, plus iconic attractions such as the Pyramids of Giza, the Valley of the Kings in Luxor, and the temples of Aswan, the country has traditionally gained less than 1% of its assets. while more than 1. 4 billion tourists traveled around the world, only a fraction chose Egypt as their destination, and Europe was a preferred choice for nearly a portion of those travelers.
Recent findings through the Central Bank of Egypt (CBE) have highlighted positive developments in the tourism sector. In the 2022/2023 monetary year, Egyptian tourism profits grew by a remarkable 26. 8%, reaching $13. 6 billion, to $10. 7 billion in the last fiscal year. (2021/2022).
The report also highlights a 35. 6% increase in the number of inbound tourists, totaling around 13. 9 million visitors. In addition, the number of nights spent by tourists in Egypt increased by 27. 6%, reaching a record 146. 1 million nights in the 2022/2023 fiscal year.
As part of the ministry’s ongoing virtual transformation efforts, e-visas can now be granted to citizens of 78 nationalities, with another 20 nationalities expected to be included in the coming weeks, according to Issa.
In addition, Egypt grants visa-on-arrival privileges to travelers of around 180 nationalities, who have a valid visa in their passport from countries such as the United Kingdom, the United States, Canada, Japan, New Zealand, or Schengen member countries.
In December, a significant milestone was reached when 1. 7 million e-tickets were issued out of a total of 2 million guests to access the country’s archaeological sites and museums. This reflects a vital step towards optimizing the guest experience.
Over the next two to three years, the ministry will focus on measuring and its functionality through the overall guest experience, ushering in an era of advanced tourism services.
“We will make sure that [tourism] in Egypt continues to grow by 25 to 30% in the next five years, until we reach 30 million tourists until 2028, with a maximum until 2030, God willing. “
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