The number of tourists visiting Egypt last year hit a record of 14.9 million including 3.6 million visiting the country in the fourth quarter of 2023 that saw the outbreak of the Israeli war on Gaza, said Minister of Tourism and Antiquities Ahmed Issa at the International Tourism Fair FITUR2024 held last week in Madrid.

The previous record, realised in 2010 and known as the peak year for tourism in Egypt, saw almost 200,000 fewer tourists visit the country. Revenues of the sector hit new highs at $13.6 billion in 2022-23, up by 26.8 per cent from the previous year, according to Central Bank of Egypt (CBE) figures.

Issa said that tourist arrivals to the country increased by nine per cent during the first 19 days of 2024 compared to the same period in 2023.

However, some travel agencies, especially those dealing with the Spanish and US markets, have been affected by geopolitical tensions in the region.

Attiya Yamani, chairman of the Donas Travel Agency, which operates in the Spanish tourism market, told Al-Ahram Weekly that since 7 October last year the number of tourists visiting Egypt from the Spanish market has significantly decreased.

“Our company’s business has decreased by 45 per cent,” he said.

But Yamani believes that new reservations to visit Egypt starting from mid-February indicate a highly successful season ahead, a fact that is supported by the resumption of charter flights from Spain to Luxor, a favourite destination for Spanish-speaking tourists.

Yamani said that demand from the Spanish market had recovered starting with reservations for March 2024 due to the Easter holidays.

“Additional promotional campaigns will be conducted in partnership with Spanish tour operators to reassure tourists that Egypt remains safe and unaffected by the geopolitical situation in Gaza,” he emphasised, adding that the opening of the Grand Egyptian Museum (GEM) will contribute to the growth of tourist numbers from the Spanish market through the rest of the year.

The chairman of a leading Egyptian tour agency operating in the US said that the influx of tourists from the US market had been significantly impacted by the geopolitical situation in the region.

He explained that a significant portion of US tourists visiting Egypt prefer to book regional packages that include visits to Egypt, Jordan, and Israel. This trend has resulted in decreased demand for these packages and the postponement of booked trips.

“I am confident that this situation will not persist for long. Inbound tourism from the US market will soon recover, as US tourists have a strong affinity for ancient Egyptian civilisation, and cultural tourism is their preferred choice,” he said.

Egypt’s share of global tourism increased in 2023 to 1.1 per cent, which is higher than its level in 2019, said Issa, who added that the country aims to increase this share to 1.6 to 1.7 per cent by 2028, attracting 30 million tourists.

To host such a number and reach the required share in the global tourism market, Egypt must meet projected accommodation demands for the coming years by pressing ahead with plans to enhance hotel capacity nationwide, Issa said.

“Although the country has increased the number of hotel rooms to reach 220,044 in 2023, up from 200,000 in 2022, more are still required to reach the targeted 30 million tourists in 2028,” he said, noting that the current number of rooms will only accommodate the number of tourists that Egypt is targeting in 2024.

From December 2022 to December 2023, he explained, Egypt had achieved a historic surge in hotel room numbers, with an additional 14,209 new rooms marking the highest growth rate in the past 15 years and reaching seven per cent.

“This surge in capacity has created around 15,600 direct job opportunities and 70,000 indirect job opportunities,” Issa said.

In order to boost the tourism sector and accelerate investment in hotels in Egypt, the cabinet has recently approved a new LE50 billion initiative offering both loan facilities and investment incentives to encourage private-sector involvement in the country’s tourism industry.

It encourages the speedy construction of new hotels or the reopening of currently closed hotels or hotel rooms. The package aims to stimulate the rapid growth of hotel capacity in Egypt and stimulate investors to participate in either completing the construction or the operation of these new hotel facilities by early 2026.

It is expected that each additional 15,000 rooms will generate value-added tax (VAT) payments of between LE1 billion and LE2 billion, along with LE2 billion in commercial and industrial profit tax. Additionally, the initiative is anticipated to result in the creation of approximately 45,000 new jobs, both directly and indirectly.

“Tripling the number of flight seats from its 2021 level is another goal that will help to achieve the target number of tourists in 2028,” Issa pointed out.

He added that in collaboration with the Ministry of Civil Aviation, the number of incoming flight seats to Egypt had increased in 2023 by more than 35 per cent compared to 2022.

The Egyptian Tourism Authority (ETA) also plans to execute joint marketing campaigns on tourism to Egypt in collaboration with local and international partners, including tour operators and airlines.

The ETA intends to host several familiarisation trips to Egypt for selected industry partners.

International tourism is well on track to return to pre-pandemic levels in 2024, following a strong 2023 season.

According to the UN Tourism barometer for the year, published in late January, international tourism ended 2023 at 88 per cent of pre-pandemic levels, with an estimated 1.3 billion international arrivals.

“The unleashing of remaining pent-up demand, increased air connectivity, and a stronger recovery of Asian markets and destinations are expected to underpin a full recovery by the end of 2024,” according to the UN Tourism website.

* A version of this article appears in print in the 8 February, 2024 edition of Al-Ahram Weekly