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New goals for Egyptian tourism

While the recovery of the sector in Egypt began in 2014, the new Minister of Tourism, Khaled Ramy, wishes to double arrivals in the country by the year 2020 and reach the figure of 20 million visitors.

Appointed new Egyptian Minister of Tourism within a ministerial reorganization, Khaled Ramy announced his ambitions for the sector in an interview with Reuters. He wishes to double arrivals in the country by the year 2020 in order to reach 20 million tourists and generate 20 billion dollars in revenues. The sector's new ambitions are all the more important since it represents 11.3% of Egypt's GNP.

The announcement came a few months after the first signs of recovery of tourist arrivals in the country. While the start of the year was difficult for the sector due to terrorist threats, improvement of the security situation in the primary tourist areas of the country (Red Sea, Cairo and the South of the Nile Valley) then made it possible to increase the number of visitors. Its progress had notably improved by 70% in the third quarter of the year, in comparison with the same period in 2013.

In the end, on the whole of the year 2014, Egypt welcomed close to 10 million tourists, or 4.4% more than in 2013. Arrivals in the country were nonetheless lower than 40% in terms of levels recorded during Arab Spring, the Egyptian revolution and the military coup in 2013.

The return of foreign clientele to Egypt could be particularly felt with respect to business at hotels in the country, as data collected by MKG Hospitality show. During 2014, the occupancy rate at properties properties progressed by 6.7 points, dropped below 50%. Cumulated with the 8.8% improvement in the average daily rate, the increase in arrivals made it possible to increase the Revenue per available room by 24.8% (RevPAR).

While Egyptian tourism professionals remain prudent as far as concerns the year 2015 and do not expect to return to the level of activity in 2010, January is mostly encouraging for the hotel industry. The RevPAR in the country is in fact up by 52.5% on the period, due to an 8.3 point improvement in the occupancy rate and 26.1% growth in the average daily rate .

Also read:

  • Another hard blow for Egyptian hoteliers
  • Tourists have returned to Egypt

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