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Tourism Sector Developments In Egypt
An overview of the tourism sector in Egypt with focus on the latest market developments and investment opportunities.
(March 2008)
Members: LE300, Non-members: LE500, Int'l Price: $500
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Summary
Tourism in Egypt has long been a driving engine of growth and one of the largest sources of foreign currency. The tourism sector is a significant contributor to GDP and employment, with direct shares of 3.5% and 12.6% respectively.
Egypt’s tourism sector has regained momentum and realized an outstanding performance over the last few years in terms of volume, value-added and foreign revenues. Tourist inflows to Egypt reached 9.7 million in 2006/07, up by 11.6% from the previous year, and generated a total of US$ 8 billion in revenues. International tourist nights amounted to 96.2 million nights, with an average length of stay of 9.8 nights per visitor.
On the supply side, the Egyptian tourism sector has seen numerous developments in different areas, such as marketing, ICT infrastructure and human resources, in line with the Ministry of Tourism’s efforts to promote Egypt as a worldwide tourist destination. New tourism niche areas – such as sports tourism, health and therapeutic tourism, shopping tourism and residential tourism – have evolved as a result of ongoing efforts to upgrade the quality of the sector.
Tourism investments in 2006/2007 amounted to LE4.13 billion, of which 83.5% were private sector investments. Egypt has lately become an attractive investment option, due to the friendly policies adopted by the government and the improvement of the investment environment in general. Several touristic mega-projects are underway in Marsa Alam, on the North Coast and in the Red Sea area.
The Ministry of Tourism is targeting 14 million foreign arrivals by 2011/12, predicting the generation of 1.2 million new jobs, and aiming to attract private sector investments of LE41.8 billion over the coming five years. To achieve these targets, the government is massively expanding its tourism facilities, as well as modernizing its supporting infrastructures.
The Ministry of Tourism has also set an integrated “Tourism Sustainable Development Plan” that will continue with improvements to the tourism sector up to 2020.
Long-term expectations for Egypt’s tourism sector remain optimistic, and it is believed that Egypt will continue to be the region’s largest tourist destination.
SECTOR HIGHLIGHTS
- Tourism in Egypt attracted 9.7 million visitors and generated receipts of US$8 billion in 2006/2007.
- Over 80% of Egypt's inbound tourists come from Europe.
- Recreational tourism continues to dominate the Egyptian market accounting for approximately 86% of all visits.
- Investments in the tourism sector reached approximately US$724 million in 2006/2007.
- Several mega tourist projects are underway in Marsa Alam, the North Coast and the Red Sea, offering luxurious hotels, residential units and recreational parks.
- Egypt aviation infrastructure is being modernized with major transformations of facilitates at major airports.
- Egypt’s International Tourist Arrivals (ITA) and International Tourism Revenues (ITR) are expected to reach 14 million and US$12 billion, respectively, by the year 2011.
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