Egypt's tourism revenues forecast to decline $4 billion in 2011

Dalia Farouk, Friday 6 May 2011

The main source of foreign exchange in Egypt — tourism — is said to have dropped over $1 billion in the first two months of 2011

A report by CI Capital Research has estimated that tourism revenues in Egypt for 2011 will reach $7.6 billion — a 35 per cent drop below levels in 2010.

The report highlighted that Easter vacations as well as the reversal of travel bans by several European countries and the United States had boosted the struggling sector by 15 per cent in April over February.

Mona Mansour, financial analyst in CI Capital said that recent political and social turmoil had severely affected the tourism sector. An estimated 210,000 tourists departed Egypt during the last week of January 2011, causing a decline of $178 million in tourist spending.

Trip cancellations during February alone resulted in an estimated loss of $825 million.

Mansour explained that the sector will not recover unless the country stabilises, especially on the security front.

 

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