Egypt expects fewer visitors this year even as its new tourism minister looks to restore confidence among tour operators.
The country expects to attract 8.6 million tourists this year, down from 9.3 million last year, because of “the current situation”, according to a ministry official. “We can also estimate 9 million tourists if things go better”. Egypt received 9.8 million tourists in 2014.
A Russian plane crash over the Sinai Peninsula in October wrecked a recovery in the tourism sector and triggered a travel ban from Russia and warnings in other countries. Moscow halted all civilian flights to Egypt, one of the most popular winter sun destinations for Russians after the plane crash, killing everyone on board. It said a bomb brought the plane down.
The country’s new tourism minister plans to review its charter incentive programme when it expires in November to help attract more tourists, besides improving services at its 11 overseas offices. Talks are also on with EgyptAir to start direct flights to tourism destinations in Egypt from overseas.
“Egypt currently has 250,000 rooms and there are 200,000 more in the pipeline,” Egypt’s new tourism minister, Yehia Rashed, told The National. “We need a way to fill these rooms.”
The ministry expects about 10 million tourists next year. It is also in talks with the UK and Russian authorities to resume flights and lift travel alerts.
Despite the fall in tourist numbers, some hoteliers are gradually stepping into the market. Swiss-Belhotel International expects to manage a 200-room, four-star property in Alexandria in 2018. The Swiss-Belhotel Marseilia will also have 500 residential units.
“We are also talking to developers in Cairo and for another one in the north coast,” said Gavin Faull, Swiss-Belhotel International’s chairman and president. “For Egypt, we are positive that the tourism industry will improve [and] the hotels we are signing will only open by 2018, so the market will be different than what it is today.”
During the first quarter, Egypt received 1.2 million tourists, which was a 46 per cent drop from the same period last year.
They spent US$500 million during the period, down 65 per cent from the $1.5 billion generated during the same period last year.
With fewer tourists, spending less, one bright spot for Egypt’s battered tourism sector is a rise in regional visitors, especially high-spending visitors from the Arabian Gulf. The country received 180,000 tourists from the Mena region, a jump of 45 per cent.
Among these, 10,000 tourists visited from the UAE, besides 10,800 from Saudi Arabia and 33,000 from Kuwait.
The highest average spenders among the Gulf visitors were from Kuwait, who spent an average of $170 a night, followed by $140 a night for UAE visitors and $133 a night from Saudi visitors.
“Security is not an issue in Egypt,” Mr Rashed said. “We want tourists from India, the UAE, we want tourists from all over the world.”
The ministry will review its charter flight programme that encourages tourism agencies to launch more charter services to destinations in Egypt when it expires in November, Mr Rashed said.
“It will be based on different marketplaces to help airlines develop a strategy to start to motivate people,” he said.
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