Egypt expects to increase tourism numbers by 3 million this year as the security situation improves in the country.
Tourism, which once provided 11.3 per cent of the GDP for Egypt, attracted 9.9 million guests last year, down from 14.7 million during its record year in 2010. It expects to receive 20 million tourists by 2020.
By 2016, the tourism minister expects to surpass the 2010 figures.
The ministry expects tourists to spend US$100 a day per person per trip in 2020 from $77 last year. Revenues from tourism is expected to reach $26 billion by 2020, from $7.3bn last year. It was $12.5bn in 2010.
“We have always been back, in the tourist areas we have no security issues at all,” said Khaled Ramy, Egypt’s tourism minister. “There are more [security personnel] in these areas.”
It is also trying to reposition itself away from package tourism and dependance on charter flights by promoting itself to honeymooners and environmental tourists.
This year, the ministry has a total marketing budget of around $70 million to promote the destination.
With its dam and Pharaonic temples, Aswan suffered one of the worst spates of low tourism following the Arab Spring uprising. Aswan, which employs around 200 tour guides, saw a near 100 per cent unemployment rate related to tourism in 2013 due to the uprising. Last year it was down to 40 per cent and this year, the governor is expecting a 30 per cent unemployment rate.
“Asian tourism was a large factor in the recovery,” said Moustafa Yosri, the Aswan governor.
“There is an overall impact on tourism as a result of damage to the reputation due to the happenings, but last year we saw a 40 per cent occupancy rate in Aswan and that is a positive sign,” said the governor.
To diversify from package and cultural tourism, the province is looking at innovative ways such as more airlines flying to Aswan and Luxor airports, and promoting ecological tourism.
In Dubai, hotels are feeling the pinch of the recovery of Egypt.
“It’s like having more opportunities for tourists to go to,” said Omer Kaddouri, the president and chief executive of Rotana.
Luxor, which also offers cultural tourism, expects to see a 21 per cent occupancy rate for the full year, with room rates at $44, according to consultancy Colliers. That is compared to 52 per cent occupancy in Cairo with room rates at $127.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
