Israel-Gaza Crisis: Tourism surges in Egypt despite economic hardships
Cairo, Egypt (PANA) - Despite economic hardships and the Israel-Hamas conflict, Egypt hosted 14.9 million tourists in 2023, exceeding its previous record of 14.7 million tourists in 2010.
Even with the outbreak of war between Israel and Gaza in October 2023, the Egyptian government reported a surge in tourism activity in the fourth quarter of 2023. During the final quarter of the year, Egypt hosted 3.6 million tourists, an 8 percent increase compared to the same period in 2022.
According to a new report published on the Global Agricultural Information Network (GAIN), Egypt aspires to bring in 20 million tourists in 2024 and 30 million tourists by 2028.
Egypt imported roughly $4.12 billion of consumer-oriented products in 2022 (most recent full year data available). The United States was the fifth largest exporter to Egypt (by value) with approximately $250 million in exports. However, U.S.-origin food exports to Egypt face stiff competition from European, Middle Eastern, and increasingly African-origin exports.
The Egyptian hotel sector totalled approximately 220,000 rooms, and roughly 1,400 tourist restaurants at the end of 2023. The country aims to add another 270,000 hotel rooms and 4,600 tourist restaurants in the coming years to meet its tourism target.
Additionally, there are approximately 400,000 restaurant/café establishments in Egypt (140,000 in Cairo), according to the Chairman of Foodics (which specialises in restaurant management solutions) in Egypt.
Global events such as the coronavirus pandemic, the Russian invasion of Ukraine, and the Israeli-Hamas conflict have collectively affected Egypt’s economy - resulting in the devaluation of the Egyptian pound, high inflation, and, most importantly for trade, a lack of foreign currency for imports.
The World Bank forecasts Egypt’s overall macroeconomic environment during FY2023/24 {July to June} would be undermined by the concurrent global shocks and domestic macroeconomic imbalances, before starting to improve over the medium-term as the country continues to push ahead with stabilisation and structural reforms.
The International Monetary Fund (IMF) recently visited Egypt in January-February 2024 and the team and the Egyptian authorities made excellent progress on the discussions of a comprehensive policy package needed to reach a Staff Level Agreement for the combined first and second reviews of Egypt’s economic reform programme.
The Central Agency for Public Mobilization and Statistics (CAPMAS) reports Egyptian imports decreased by 21 percent in the first nine months of 2023, totalling $58.5 billion compared to $74 billion during the same period in 2022.
This decline in imports is due, in part, to the difficulty importers have had in accessing foreign currency. The Egyptian market is hoping for additional loans to increase the availability of foreign currency and stabilise the economy.
Despite the economic challenges in Egypt, the report on GAIN said, 14.9 million tourists visited in calendar year 2023, marking a 33 percent growth in the country’s share of global tourism (compared to 2019) and a new record for the country, according to Egypt’s Minister of Tourism.
The government added that 3.6 million tourists visited Egypt in the fourth quarter of 2023, marking an 8 percent increase when compared to the same period in 2022.
Hotels in Alexandria and the cities along the Red Sea coast -- Taba, Nuweibea, Daha, Sharm El Esheikh, Hurghada, and Ain El Sokhna, as well as Luxor and Aswan mainly serve leisure visitors. Hotels usually do not import directly, due to bureaucracy and high tariffs. Instead, they purchase from local importers, who are better suited to navigate complex local regulations and have established relationships with retailers and food processors
The number of full-service restaurants in Egypt in 2022 grew by 24 percent to 3,836 outlets, limited service restaurants grew by 4 percent to 22,831 outlets, cafes and bars grew by 6 percent to 16,369 outlets, and the number of street stalls and kiosks grew by 8 percent to 1,321 outlets
-0- PANA AR/MA 15Feb2024
