Egypt tourism industry expects moderate growth

Egypt tourism industry expects moderate growth

October 13, 2015
Daesh defectors disillusioned  with killing Muslimsme6
Daesh defectors disillusioned with killing Muslimsme6

CAIRO — Egypt's tourism industry, hit by years of political upheaval and militant violence, is expected to post moderate growth this year and hopes a global advertising campaign will revive the sector vital for economic recovery, the tourism minister said.

Last year, 9.9 million tourists visited Egypt, a far cry from the 14.7 million that visited in 2010, before an uprising the following year triggered turmoil in the land of ancient sites and sea resorts.

President Abdel Fattah El-Sisi has restored some stability since the ouster of Mohamed Morsi in 2013 following mass protests against his rule.

Minister Hisham Zaazou expects around 10 million tourists this year or slightly higher, one million less than the previous forecast of 11 million.

"From January until the end of August the rise was very little, barely 5 percent," he told Reuters in an interview.

"So if we move at the same rate the numbers will be around 10 million... or slightly higher." Around 6.6 million tourists visited so far this year, producing revenues of $4.6 billion, compared with 6.3 million in the same period last year, when $4.509 billion was generated.

"I cannot say that the general climate is positive but the figures show that there is a modest improvement," Zaazou said.

Zaazou expects tourism receipts to range between $7.5-8 billion by the end of the year. Receipts once peaked at $12.5 billion.

Tourism is a major source of hard currency in Egypt, where foreign reserves have tumbled from $36 billion before the uprising to $18 billion at the end of August.

Zaazou expects the tourism sector to pick up next year with double digit growth in the number of tourists and revenues ranging between $9-10 billion.

The rapid advance of Daesh has worried governments across the region, including in Egypt, a strategic US ally which has a peace treaty with Israel and controls the Suez Canal waterway.

Egyptian officials say authorities have made great progress in the battle against militants and accuse Western media of exaggerating security threats.

Egypt has witnessed a rise in attacks on soldiers and police since 2013. Sinai-based militants who support the Daesh group have killed hundreds, and have recently claimed attacks on Western targets, such as a bombing outside the Italian consulate in Cairo.

In a bid to restore confidence, Egypt will launch a global advertising campaign in November. "The focus has been on such (negative) news even though we are sitting here, going to our work and dealing with the situation as if it is completely stable but this picture is not portrayed abroad," Zaazou said.

"I believe that (changing perceptions) must be a priority at this stage because the current views on the situation in Egypt is not good, so we must work on that."

Egyptian tourism has survived big setbacks in the past. On Nov. 17, 1997 militants descended on Queen Hatshepsut's temple near the Nile town of Luxor. In a short time they shot or hacked to death 58 tourists and four Egyptians.

The following January and February, visitor numbers were down almost 60 percent from the previous year. Yet the industry staged a remarkable comeback. — Reuters


October 13, 2015
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