According to the minister, the country recorded tourist arrivals of 1.3 million from 80 countries in October, an 8% increase year-on-year despite the escalating Israel-Palestine war
Egypt is on track to attract 15 million tourists in 2023 with expected earnings of more than $13 billion, explained Minister of Tourism and Antiquities Ahmed Issa in an interview with Reuters yesterday.
According to the minister, the country recorded tourist arrivals of 1.3 million from 80 countries in October, an 8% increase year-on-year despite the escalating Israel-Palestine war.
"So far the impact is on the customers who have bought the regional products because the tourism sector in Israel has actually practically shut down, so this is where we're seeing the most significant impact,” the tourism minister explained, stressing that Egypt is committed to meeting its 2023 goals.
Less than 10% of Egypt’s total bookings were impacted by the war, Issa added. The government is currently offering incentives to support the Southern Sinai tourism industry, the minister stated.
Issa explained that Egypt is offering an extra $500 of incentives per flight landing in Sharm el-Sheikh, and is working closely with wholesalers, retailers, and airliners to keep them committed to Egypt.
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According to Issa, 2023 saw a strong influx of German tourists to account for around 10% of bookings, while China – not usually a major market for Egypt – boosted tourism numbers by 7% year-on-year by the end of October.
A key source of foreign currency in Egypt, the government aims to double the number of tourists over the next five years to reach 30 million tourists by 2028.
S&P Global released a report on Monday cautioning that a decline in tourism caused by the war in Gaza could trigger major issues for Egypt, Jordan, and Lebanon, echoing IMF head Georgieva's comments in October. It attributed the slowdown to the countries’ proximity to Gaza and Israel, adding that other Middle Eastern countries are unlikely to be affected.
The report included several scenarios for the countries, forecasting a decline in Egypt’s tourism revenues ranging from 10 to 30%, which could lead to a loss of 4-11% of the country’s FX reserves.
“That said, we expect multi- and bi-lateral donors will continue to support Egypt and Jordan since instability in these countries could spill over to the rest of the region,” wrote S&P.
According to recent data from the central bank, Egypt’s international reserves saw a slight bump in October, hitting $35.1 billion compared to September’s recorded $34.97 billion.
A separate report revealed that tourism revenues grew significantly in FY2022/2023, climbing 26.8% year-on-year. The CBE added that the number of inbound tourists increased by 35.6% to about 13.9 million tourists.
In a previous interview with regional media, the tourism minister revealed that there are plans to add 25,000 new hotel rooms by mid-2024.
Issa also shared that the long-awaited opening of the Grand Egyptian Museum is slated for mid-2024.
