Egypt's Minister of Tourism Ahmed Issa announced today, Monday, that Egypt is currently offering incentives to support the tourism sector in the Red Sea areas of South Sinai. This is in light of the ongoing conflict in Gaza, which has so far only affected less than ten percent of reservations in the country.
In an interview, Issa stated that the tourism sector, a major source of hard currency in Egypt, is heading towards generating revenues of over 13 billion dollars this year, with 15 million visitors expected in the country, despite some reservations being postponed until the end of the year.
Standard & Poor's Global Ratings mentioned today that the decline in tourism revenues due to the Gaza conflict could pose significant challenges in Egypt, Jordan, and Lebanon, as some travelers are canceling or delaying their holidays to the Middle East and North Africa.
Speaking on the sidelines of the World Travel Market in London, Issa said, "The impact so far has been mainly on customers who purchased products in the region because tourism in Israel has practically halted, so that is where we see the biggest impact." He added, "But from a general perspective, the total volume of bookings affected by the conflict represents less than ten percent of the total bookings in Egypt."
Issa noted that Egypt is providing additional incentives of $500 for every flight landing in Sharm El Sheikh, as this is where customers have "the most questions" and where they interact closely with wholesalers, retailers, and airlines.
He mentioned that the large number of German tourists, who represent about ten percent of bookings in Egypt this year, along with Chinese tourists visiting the country, helped increase tourist numbers by seven percent compared to the previous year by the end of October.
Egypt aims to increase private sector involvement and enhance its role in operating services at tourist sites and airports as part of a plan to boost annual growth rates in the tourism sector by 30 percent.
Issa stated, "There are many local and international private sector groups that have shown interest in partnering with the Egyptian government in managing airports." He added, "We are putting around 200 pieces in the displays daily and are on the verge of completing audio guide devices."
