Minister discusses strategy to boost tourism

"The target is for the number of visitors coming to Egypt to reach 30 million a year," said Minister of Tourism Ahmed Issa at an AmCham luncheon on Jan. 16. That is only 0.9% of the number of tourists in the world in 2019, he said, and "Egypt deserves to have more than that."

Issa said economic and tourism experts are optimistic. A recent Cabinet Information and Decision Support Center survey shows the tourism sector with 108.4 points, indicating positive sentiment. "That score is higher than all other industries covered by the survey," said Issa. A breakdown shows 74.5% of economic experts and 100% of tourism experts expect the industry to grow in 2023.

Another survey by Al Mal newspaper found tourism should outperform all other economic sectors this year, reaching a growth rate of 11.1%. ICT and extractive industries were the only others to show positive sentiment. The survey also noted 60% of tourism companies expect revenue to increase in 2023. h

Issa stressed that his ministry's mission is to effectively regulate a fast-growing industry predicted to expand at 25% to 30% annually for the next five years.

The critical question, he said, is whether the problem is a "demand side issue or a supply issue." He noted the results of a survey conducted by his predecessor indicated it is not a demand, communication, or promotion problem. "Nearly 270 million respondents said yes, we are aware [of Egypt as a vacation hotspot], we are interested, we are aware of its value and will recommend it."

The minister said Egypt is not as accessible as it should be compared to other countries attracting 30 million to 40 million tourists annually.

It starts with aviation, where there aren't enough flights to Egypt compared to Morocco, Turkey, and Saudi Arabia. Additionally, the percentage of low-cost seats is well below those of these other four countries. For example, economy seats represent 47% of seats on flights to Morocco, 33% for Turkey, 29% for Saudi Arabia, and 14% for Egypt.

Another challenge is having enough hotel rooms to attract 30 million visitors. "We have 203,000 rooms, but countries that attract 30 million to 40 million visitors have 500,000 rooms," said Issa. "Additionally, they are not correctly distributed across the country. For example, [half] of tourists arriving in Egypt are culture and history vacationers. Yet, there are [fewer than 22,000 rooms in Upper Egypt] where most of Egypt's historical sites are."

He said the ministry would boost spending on promotional activities by 50% this year. It also will introduce tourism-friendly policies and work with other ministries to ensure a better tourist experience and make Egypt more attractive to "frequent independent travelers," who don't use a tour guide or travel in groups.

In addition, the ministry will add 20 countries to the current 78 that can obtain a tourist visa online. More than 180 nationalities can purchase an entry visa to Egypt upon arrival.

The ministry is expanding investments in additional hotel rooms, theme parks, dining and shopping venues, and casinos. It also is revamping the user interface of the visa-issuing platform and other portals offering online services to tourists.

Issa estimates the sector will require $30 billion in investments to increase the number of hotel rooms in the coming five to seven years and a similar amount for customer experience. "Those opportunities will be open to the private sector to invest in," he said. "Today, tourism is a great industry to invest in."