2024 Yearender: Egypt tourism reviving

Nevine El-Aref , Monday 23 Dec 2024

Egypt benefited from the global recovery in tourism in 2024, making it a landmark year for the industry.

Tourism positive in 2024
Shali Citadel, Siwa; Luxor Temple

 

The global tourism industry achieved a remarkable milestone in 2024, not only rebounding from the devastating impacts of the Covid-19 pandemic but also surpassing pre-pandemic levels in both arrivals and spending.

With around 1.1 billion international tourists travelling during the first nine months of the year, reaching 98 per cent of 2019 levels, tourism has emerged as a driving force for economic recovery worldwide.

Countries across the globe, including key destinations like Egypt, have demonstrated resilience and adaptability, making 2024 a landmark year for the industry.

Egypt, a jewel of global tourism, epitomised this resurgence. Its tourism industry has made a remarkable comeback in 2024, surpassing pre-pandemic levels and solidifying its position as one of the world’s top travel destinations. Following years of challenges brought on by the Covid-19 pandemic, the sector’s recovery has not only revitalised the economy but also underscored Egypt’s enduring appeal to global travellers.

According to a recent UN Tourism report, Egypt experienced remarkable growth in its tourism sector in 2023, welcoming 14.9 million international visitors and achieving record revenues of $14.1 billion, securing first place ranking in Africa. Morocco follows with $10 billion, South Africa with $5.7 billion, and Tanzania with $3.4 billion.

For Egypt, this positive momentum carried over into 2024, with nearly 14 million tourists arriving between January and November of the year, reflecting a 3.5 per cent increase compared to the same period last year, despite ongoing geopolitical challenges.

A diverse array of nationalities visited Egypt during the same period, with tourists arriving from 174 countries worldwide. No single country accounted for more than 11 per cent of the total visitors, reflecting the broad international appeal of Egypt as a travel destination.

Reham Samir, associate to the minister of tourism and antiquities for international relations, told Al-Ahram Weekly that among Egypt’s top ten markets are Germany, Russia, Saudi Arabia, the UK, Poland, Italy, the Czech Republic, the US, and France.

“The top source markets for Egypt have shown mixed results in 2024,” Samir said, adding that tourism figures from January to December reveal notable shifts among Egypt’s key source markets compared to the same period in 2023.

She explained that Germany had retained its position as the leading source market, recording a five per cent increase in tourist arrivals. Russia followed in second place with a significant 13 per cent rise, while Saudi Arabia climbed to third place with a 23 per cent surge.

The UK moved up to fourth place with a remarkable 30 per cent increase, improving from fifth place ranking in 2023. Poland also advanced to fifth place with a 42 per cent increase, up from sixth place last year. The Czech Republic held steady in eighth place, showing a 10 per cent increase.

In contrast, Italy dropped to sixth place with a six per cent decline, down from fourth place in 2023. Similarly, the United States slipped from seventh to ninth place, experiencing a 15 per cent decrease in tourist arrivals. France, meanwhile, remained in 10th place but recorded an eight per cent decline compared to last year.

“These figures highlight both opportunities and challenges in Egypt’s efforts to maintain and grow its appeal in international tourism markets,” Samir said.

“Egypt has been a popular travel destination for nearly 50 years, and we continue to prioritise the safety, security, and overall experience of every tourist who visits our country. Even amidst the geopolitical situation in the region, our most popular tourist destinations remain far removed from conflict areas, ensuring a safe and enjoyable experience for travellers,” Amr Al-Kadi, CEO of the Egyptian Tourism Authority (ETA), said.

  He said that the Ministry of Tourism is working closely with the governments in key source markets to provide accurate, up-to-date information that helps travellers make informed decisions about their trips to Egypt.

 

KEY STEPS: “In response to regional challenges since 2023, the government has implemented a comprehensive response plan, spearheaded by senior officials and supported by the tourism industry. This collaborative effort has been instrumental in maintaining Egypt’s position as a leading global destination,” Al-Kadi said.

He added that among the key steps were the establishment of a high-powered committee comprising of tourism investors, regulators, and industry associations to ensure all stakeholders remain aligned and informed, introducing a new aviation incentive programme, lowering the qualifying load factor for flight eligibility and offering an additional incentive for flights landing in Sharm El-Sheikh.

In addition, the ETA has allocated additional funding for joint marketing campaigns and organised familiarisation trips for international tour operators and airlines. Plans are underway for an extensive, targeted online marketing campaign as well as promotional efforts concentrating on business to business rather than business to consumers.

In collaboration with tour operators, the ETA has captured real-time testimonials from satisfied tourists enjoying their stays in Egypt. These were shared on social-media platforms in multiple languages to reinforce the message that Egypt is a safe and welcoming destination.

Instead of solely focusing on driving demand through incentives, Egypt has also worked to mitigate risks to its tourism value chain. This has included offering additional aviation incentives, co-marketing campaigns, and support for international wholesalers to encourage them to promote Egyptian travel products to retailers in source markets.

“These proactive measures have allowed us to address concerns, bolster confidence among international travellers, and ensure that Egypt remains a top-of-mind destination for visitors worldwide. By prioritising safety, collaboration, and innovation, we continue to demonstrate that Egypt is a safe, welcoming, and exceptional place to visit,” Al-Kadi said.

He highlighted that revenue growth in Egypt’s tourism sector varies by region. The Red Sea is projected to witness a 10 per cent increase in revenues, while Cairo and Giza are expected to achieve growth of at least 15 per cent.

He noted a significant increase in Saudi tourism, with the number of Saudi visitors rising by 25 per cent. “By the end of 2024, Egypt is expected to host approximately one million tourists from Saudi Arabia,” he added.

Tourism and Antiquities Minister Sherif Fathi anticipates the arrival of 15.3 million tourists and revenue reaching $14.7 billion in 2025. These estimates are based on the current average spending rate of $93.3 per night, underscoring the sector’s significant contribution to Egypt’s economy.

“Egypt’s travel and tourism sector has achieved an extraordinary rebound, surpassed previous records and demonstrating its resilience and crucial role in the economy. The Egyptian government has placed travel and tourism at the centre of its agenda, with a strong focus on investment to drive growth,” said Julia Simpson, President and CEO of the World Travel and Tourism Council (WTTC).

Egypt’s tourism sector has revised its projections for achieving 30 million visitors by 2028, due to the ongoing geopolitical instability in the region. While the initial target had been set based on optimistic growth expectations, the current situation has prompted adjustments to the forecast.

The new assumptions are based on a gradual growth approach, as the tourism industry will target a five per cent annual growth rate between 2024 and 2026, followed by an accelerated 12 per cent annual growth from 2027 to 2031.

The second assumption is geopolitical stability. The achievement of these growth rates hinges on the stabilisation of the geopolitical situation in the region, which remains a key factor in the sector’s success. Third is infrastructure development, assuming that the expansion of hotel capacity will continue as initially planned, before the current regional challenges impacted projections.

“As a result of these new assumptions, Egypt’s tourism sector now expects to reach the 30 million tourist goal by 2031, rather than the previously anticipated 2028,” said Fathi when announcing the ministry’s statement before Egypt’s parliament.

He added that the Ministry of Tourism and Antiquities will conduct bi-annual reviews to assess the situation and ensure the revised targets remain realistic. These reviews will help determine whether the tourism industry is on track, if further adjustments are needed, or if an eventual resolution to the crisis could accelerate growth.

Fathi also outlined the ministry’s strategic vision to position Egypt as “the world’s most diverse tourist destination,” emphasising the country’s unparalleled variety of attractions, from archaeological marvels to diverse tourism styles and products.

The ministry’s mission is defined as “achieving economic security in tourism and antiquities,” he said, adding that it centres on seven key pillars designed to achieve ambitious goals: encouraging investment in tourism and antiquities by offering incentives and initiatives; highlighting and expanding Egypt’s tourism diversity to attract a broader range of visitors; creating a robust marketing plan for Egypt’s destinations and products; promoting sustainability in tourism and antiquities, as well as enhancing the tourist experience through improved services; ensuring effective governance and oversight of tourism and antiquities activities; and building institutional and professional capacities to support sector growth.

Fathi highlighted the ongoing efforts to attract investments, including two major initiatives recently approved by the government. The first, a LE50 billion initiative launched in collaboration with the Ministry of Finance and the Central Bank of Egypt (CBE), offers financial support to tourism enterprises especially hotels. The second initiative provides additional incentives under the Investment Law to encourage further growth.

Plans are also in motion to expand Egypt’s hotels, including floating hotels, and to introduce innovative accommodation models. A unified investment map will soon be launched to identify and market new opportunities both locally and globally.

Central to the strategy is the promotion of Egypt’s unique diversity as a tourism destination. Efforts are underway to diversify and develop new tourism products, ensuring the country appeals to a wider audience of global travellers. A detailed marketing strategy targeting international markets is being implemented. This includes campaigns tailored to specific regions, strategies to address seasonality, and plans to balance hotel occupancy across various destinations year-round. Enhanced digital marketing efforts will also focus on leveraging social media and online platforms to attract tourists.

Sustainability is a core element of the strategy, Fathi said, with initiatives focusing on digital transformation, environmental protection, and improved accessibility for all tourists, including those with special needs. Efforts to preserve Egypt’s archaeological treasures and combat the illegal trade of antiquities are also underway.

The ministry is prioritising the enhancement of the overall tourist experience, ensuring smooth and enjoyable visits from the moment of planning to departure.

It is also restructuring its internal operations to improve efficiency and accountability. Training programmes are being developed to upgrade the skills of those working in the tourism and antiquities sectors, ensuring high-quality service and professionalism.

This comprehensive strategy underscores Egypt’s commitment to becoming a global leader in tourism and antiquities.

By leveraging its unparalleled heritage and embracing innovation, the ministry aims to drive sustainable growth and secure Egypt’s position as a top destination for travellers worldwide.

 

REBOUND: This year’s international tourism rebound reflects the pent-up demand for travel, enhanced air connectivity, and significant investments in tourism infrastructure. Many destinations have recorded exceptional growth, with over 60 nations surpassing their 2019 arrival numbers.

According to the latest World Tourism Barometer by UN Tourism, the sector is expected to fully rebound by the end of the year, despite ongoing economic, geopolitical, and climate-related challenges.

The Covid-19 pandemic dealt an unprecedented blow to global tourism, but four years later the sector is back on track. Data from the Barometer reveals that most regions surpassed 2019 international arrival numbers between January and September 2024, recording about 11 per cent more than in the same period of 2023.

Even more remarkable is the growth in tourism earnings, with destinations reporting double-digit increases in international tourism receipts compared to 2019.

“The strong growth in tourism receipts is excellent news for economies worldwide. With visitor spending growing stronger than arrivals, millions of jobs and small businesses are benefiting, while tax revenues and balance of payments see significant contributions,” said Zurab Pololikashvili, secretary-general of UN Tourism, highlighting the importance of this recovery.

The recovery of the global tourism has been driven by strong post-pandemic demand in Europe, solid performance from major global source markets, and the continued rebound of destinations in Asia and the Pacific. Enhanced air connectivity and streamlined visa processes further bolstered international travel.

The UN Barometer says that the Middle East is the region leading the global recovery, with the strongest growth recording a 29 per cent above 2019 levels while Africa ranked second with a six per cent increase from pre-pandemic levels. Europe achieved a modest growth of one per cent over 2019 figures, while the Americas recovered 97 per cent of 2019 arrivals, and Asia and the Pacific reached 85 per cent of pre-pandemic levels, up from 66 per cent in 2023.

By subregions, North Africa and Central America saw the strongest performance from January to September 2024, with 18 per cent and 16 per cent more international arrivals than before the pandemic, respectively.

The summer season in the Northern Hemisphere was particularly robust, with global arrivals reaching 99 per cent of pre-pandemic levels in the third quarter of 2024. A total of 60 out of 111 destinations surpassed 2019 arrival numbers in the first eight to nine months of 2024.

Tourism earnings outpaced arrivals in 2024, with 35 out of 43 reporting countries exceeding 2019 revenue levels. Many reported double-digit growth compared to 2019, well above inflation in most cases.

Key performers included Serbia with nearly doubled earnings, recording a 99 per cent increase, while Japan saw a 59 per cent rise in receipts, alongside Turkey with a 41 per cent increase and France with a 27 per cent increase. Outbound spending in India surged by 81 per cent compared to 2019, while the US maintained its position as the world’s top tourism earner with seven per cent growth.

“Despite the strong recovery, the tourism sector continues to grapple with several challenges,” said the UN report, adding that the tourism sector is still facing inflation in travel and accommodation costs and volatile oil prices, ongoing geopolitical tensions affecting traveller confidence, climate disruptions and extreme weather events impacting operations, and labour shortages straining the capacity of service providers.

* A version of this article appears in print in the 26 December, 2024 edition of Al-Ahram Weekly

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