Egypt is implementing incentive measures to bolster its tourism sector, particularly in the southern Sinai region along the Red Sea, in response to the regional tensions stemming from the Gaza Strip conflict. Fortunately, the unrest has only affected less than 10% of the nation’s tourism reservations, as reported by the Egyptian Tourism Minister on Monday.
The tourism industry is a vital component of Egypt’s economy, projected to generate over $13 billion this year, contributing significantly to the country’s foreign currency reserves. According to Ahmed Issa, in a recent interview, the country is on pace to attract 15 million tourists, in spite of some end-of-year booking deferrals.
Concerns were raised by a ratings agency on Monday, emphasizing the potential economic strain on Egypt, Jordan, and Lebanon if tourism declines due to the Gaza conflict. With some vacationers canceling or postponing trips to the Middle East and North Africa, the repercussions are currently most evident in regional sales.
Issa, speaking at the World Travel Market trade fair in London, mentioned that tourism in Israel is particularly hard hit, effectively grinding to a halt. In contrast, Egypt is actively engaging with partners in the tourism industry to maintain travel commitments to the region.
In an effort to maintain tourist traffic, particularly in Sharm el-Sheikh – a major resort area situated 360 km south of the Sinai Peninsula’s northern coast – Egypt is offering additional incentives of $500 for every flight that arrives in the city. Sharm el-Sheikh has been the focus of numerous inquiries from potential visitors.
Issa also highlighted that robust visitor numbers from Germany and China have led to a 7% increase in tourism compared to the previous year, as of the end of October.
To further stimulate growth, Egypt is seeking to involve the private sector more in running airport services and amenities at tourist sites, aiming for a 30% annual increase in tourism. Several local and international private entities have shown interest in such partnerships for airport management.
Moreover, the much-anticipated Grand Egyptian Museum near the Giza pyramids is expected to provide a significant boost to tourism. Issa revealed that the museum’s official opening is slated for sometime between February and May of the following year. The museum is rapidly progressing towards completion, with around 200 artifacts being positioned daily and the final touches being added to the audio guides.
