Egypt

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II. PARTNER COUNTRY PROFILES – EGYPT

Egypt

Tourism in the economy


The tourism industry, involving around 70 sub-sectors, has always been an important
economic activity in Egypt. Travel receipts constituted the sixth largest source of foreign
currency with international tourists generating a total of USD 2.6 billion in revenue.
Tourism contributed (directly and indirectly) 11.3% of Egypt’s GDP in 2015/2016. It accounts
for 23% of total services exports.
International tourist arrivals to Egypt reached 5.4 million visitors in 2016 (32.7 million
tourist nights). About 12% of inbound tourists are from Germany, 19% from other Western
European countries, 15% from Eastern European countries and 36% from Arab countries.
According to Egypt’s Tourism Satellite Account (TSA) for 2014, the labour force working
in tourism stood at 1.8 million individuals, representing 6.3% of the total labour force and
7.2% of total employment in Egypt. Around 74% of employees in tourism are full-time with
26% working on a temporary basis or part-time.

Tourism governance and funding


The Ministry of Tourism is responsible for tourism policy and for establishing a
coherent legal and regulatory framework for tourism development. Two tourism
authorities fall under the Ministry:
● The Tourism Development Authority works primarily on setting and implementing
regulations for tourism projects and investments, by assisting with the provision of land
and facilitating access to loans for developing infrastructure projects,
● The Egyptian Tourism Authority (ETA) is responsible for promoting inbound and
domestic tourism. It manages the development and diversification of the tourism
product, both regionally and internationally.
The Egyptian Tourism Federation (ETF) is composed of five tourism industry business
associations – the Hotels Association, the Travel Agents’ Association, the Chamber of
Tourist Establishments, the Chamber of Tourist Commodities and the Chamber of Diving
and Water Sports. It works closely with the Ministry of Tourism in areas related to tourism
planning, and in managing the Tourism Workforce Skills Development Project. By law, the
ETF’s views are considered before any new legislative measures are taken.
The Ministry recognises the need to support coordination with other ministries and
institutions for effective tourism policy and is working to improve co-operation among all
relevant stakeholders. To assist in this process, the Ministry has adopted a concept of
decentralisation in tourism to ease communication between the government and the
private sector, implemented effective structures for the management and development of
tourism activity, adapted laws and regulations to attract investment, maintained the

330 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018


II. PARTNER COUNTRY PROFILES – EGYPT

stability of private sector participation (represented by the ETF and its five chambers) by
strengthening relations with tourism clusters such as investor associations and tourism
committees in the chambers of commerce, and sought to provide regular, accurate and
transparent data.
The Supreme Council for Tourism helps to fast track progress by removing barriers. It
involves eleven ministries and the ETF, and is chaired by the President.
The general budget for tourism promotion is around USD 67 million which is directed
towards external activities including: launching a new branding campaign over the next
three years for global marketing, setting up interactive advertising in touristic sites,
enhancing public relations and optimising search engines. These activities are managed by
the ETA and financed by the Tourism Fund Unit at the Ministry. The Accountability State
Authority (ASA), an external government agency, monitors and evaluates the fund
expenditure to ensure a transparent process.

Egypt: Organisational chart of tourism bodies

Ministry of Tourism

Egyptian Tourism
Tourism Development
Authority
Authority (TDA)
(ETA)

Research and Technical Tourism Activities and Tourism Companies Hotels and Tourism
Planning Office of the Minister
Directorate Internal Offices and Guides Establishments

Egyptian Tourism Egyptian Chamber


Federation Egyptian Hotels Egyptian Travel Egyptian Chamber of Chamber of Diving
of Tourist
(ETF) Association Agents Association Tourist Commodities and Water Sports
Establishments

Source: OECD, adapted from Ministry of Tourism, 2018.

Tourism policies and programmes


Egypt’s national strategy considers tourism as an important national industry and
seeks to create a suitable environment to support tourism. Tourism faces many challenges
and new policies have to be set to enhance a competitive, sustainable and inclusive
tourism industry. Such challenges include:
● Infrastructure: restrictions on charter airlines, the railways etc.,
● Workforce: qualification gaps, the need for “on the job” training, technology skills and
certified instructors, technical education and vocational training, and quality of service,
● Complex legislative and licensing frameworks: the new Tourism Law is yet to be
implemented,
● Safety and security: hygiene, traffic safety, emergency systems, hotel standards, public
security and tourism awareness,
● Marketing and promotion: branding and public relations,
● Sustainability issues: energy efficiency, the use of solar and renewable energy sources,
water consumption, biodiversity, solid/liquid waste and carbon emissions.

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 331


II. PARTNER COUNTRY PROFILES – EGYPT

The sustainable tourism strategy is currently being revised with new targets for 2030.
The priorities are to increase value, to achieve high and sustainable economic growth,
alleviate poverty, address income disparities, create productive jobs and increase gender
equality. The strategic targets are to:
● Attract 20 million international arrivals,
● Raise the average tourist expenditure per night by 50%,
● Increase Egypt’s share of world tourism to 1.5%,
● Double Egypt’s share of Arab tourism,
● Raise tourism revenues to USD 20 billion,
● Attract USD 10 billion of new foreign direct investment in tourism.
The strategy seeks to address the challenges and achieve its targets through landmark
reforms and investments. Initiatives include:
● Institutional change: Establishing the Tourism Development Authority and Ministry of
Tourism as a one-stop-shop for licenses and permits, developing an intranet system
linking hotels, chambers and the Ministry, and establishing an advisory committee of
experts headed by the minister.
● Connectivity: Providing a new entry regime for many source markets with an E-visa
system and support for the private sector when establishing new routes or enhancing
frequency for travel.
● Marketing and promotion: Presenting products and services in strategic markets using
innovative and smart techniques including, a new marketing website with 14 languages,
an online campaign in traditional markets and China and India, better management of
social media, working with bloggers, a new cultural tourism commercial, and promotion
of the new VAT refund system. These activities will support traditional promotion and
marketing tools.
● Investment: Developing and diversifying tourism products and services, responding to
customer needs and trends, building high quality visitor experiences, developing a
strong sense of place and style for Egypt and for the five internal destinations.
● Sustainability: Establishing eco-principles and a “green” tourism unit, heritage preservation,
a “Green Star Hotel” programme monitoring the transformation of hotels to
environmentally friendly management and efforts to enhance environmental awareness
in the sector.
● Workforce: Promoting a National Skill Standards Project, a culinary training centre,
enhanced capacities in tourism establishments, and an accreditation and certification
system.
Egypt will apply the principles of social inclusion in its approach to tourism. It will
target the citizens and communities of Egypt as primary beneficiaries by providing
opportunities for employment and income generation, by positively contributing to
government programs, by supporting quality of life and environmental excellence and by
developing communities and society. Investments should cover skill development and
training to enhance human resource development and capacity building across the sector.

332 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018


II. PARTNER COUNTRY PROFILES – EGYPT

Statistical profile

Table 1. Egypt: Domestic, inbound and outbound tourism


2012 2013 2014 2015 2016
TOURISM FLOWS, THOUSAND
Domestic tourism
Total domestic trips 16 725 19 549 20 053 20 548 ..
Overnight visitors (tourists) 7 456 8 713 8 928 9 148 ..
Same-day visitors (excursionists) 9 269 10 836 11 125 11 400 ..
Nights in all types of accommodation .. .. .. .. ..
Hotels and similar establishments .. .. .. .. ..
Specialised establishments .. .. .. .. ..
Other collective establishments .. .. .. .. ..
Private accommodation .. .. .. .. ..
Inbound tourism
Total international arrivals 11 500 9 500 9 900 9 328 5 399
Overnight visitors (tourists) 11 164 9 209 9 650 8 984 5 168
Same-day visitors (excursionists) 336 291 250 189 141
Top markets
Germany 1 165 885 877 1 011 654
United Kingdom 1 012 955 906 869 231
Italy 719 504 400 333 131
France 318 192 145 137 101
Russian Federation 2 518 2 394 3 139 2 390 54
Nights in all types of accommodation 137 800 94 410 97 256 84 128 32 712
Hotels and similar establishments .. .. .. .. ..
Specialised establishments .. .. .. .. ..
Other collective establishments .. .. .. .. ..
Private accommodation .. .. .. .. ..
Outbound tourism
Total international departures .. .. .. .. ..
Overnight visitors (tourists) 1 857 1 854 2 181 2 134 ..
Same-day visitors (excursionists) .. .. .. .. ..
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION USD
Inbound tourism
Total international receipts 10 823 6 747 7 978 6 897 2 645 e
International travel receipts 9 940 6 047 7 208 6 065 2 645 e
International passenger transport receipts 883 700 771 832 ..
Outbound tourism
Total international expenditure 3 037 3 260 3 485 3 636 4 110 e
International travel expenditure 2 618 3 014 3 140 3 442 4 110 e
International passenger transport expenditure 419 247 346 194 ..
.. Not available; e Estimated value
Source: OECD Tourism Statistics (Database).

1 2 http://dx.doi.org/10.1787/888933641868

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 333


II. PARTNER COUNTRY PROFILES – EGYPT

Table 2. Egypt: Enterprises and employment in tourism


Number of
Number of persons employed
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries .. 1 706 700 1 698 800 1 752 000 1 992 665 ..
Accommodation services for visitors 1 239 166 900 156 900 156 100 188 740 ..
Hotels and similar establishments .. .. .. .. .. ..
Food and beverage serving industry 1 300 366 000 382 400 408 600 488 240 ..
Passenger transport .. 1 026 500 1 020 500 1 068 000 1 175 486 ..
Air passenger transport .. 34 500 28 600 24 000 23 710 ..
Railways passenger transport .. 63 500 60 100 66 000 55 970 ..
Road passenger transport .. 914 000 927 600 968 000 1 078 428 ..
Water passenger transport .. 14 500 4 200 10 000 17 378 ..
Passenger transport supporting services .. .. .. .. .. ..
Transport equipment rental .. 2 300 2 200 1 000 4 151 ..
Travel agencies and other reservation services
18 525 70 100 58 200 48 000 63 167 ..
industry
Cultural industry .. 14 400 13 500 12 700 18 251 ..
Sports and recreation industry .. 31 200 34 500 26 000 31 290 ..
Retail trade of country-specific tourism
.. 12 500 12 700 13 000 22 897 ..
characteristic goods
Other country-specific tourism industries .. 16 800 17 900 18 600 481 ..
Other industries .. .. .. .. .. ..
.. Not available
Source: OECD Tourism Statistics (Database).

1 2 http://dx.doi.org/10.1787/888933641887

Table 3. Egypt: Internal tourism consumption


Million EGP

2014
Domestic tourism expenditure Inbound tourism expenditure Internal tourism consumption
Total 22 096 98 112 138 737
Consumption products 22 096 95 075 135 700
Tourism characteristic products 14 295 80 171 112 995
Accommodation services for visitors 2 177 12 791 29 567
Food and beverage serving services 3 807 26 399 30 578
Passenger transport services 6 575 17 388 27 167
Air passenger transport services 4 426 9 808 14 864
Railways passenger transport services 296 89 391
Road passenger transport services 1 839 6 233 8 736
Water passenger transport services 14 1 258 3 176
Passenger transport supporting services .. .. ..
Transport equipment rental services .. 297 297
Travel agencies and other reservation services
1 006 5 770 6 776
industry
Cultural services 103 3 808 4 170
Sports and recreation services 532 7 398 8 026
Country-specific tourism characteristic goods 96 5 097 5 193
Country-specific tourism characteristic services .. 1 224 1 224
Other consumption products 7 801 14 904 22 705
Tourism connected products .. .. ..
Non-tourism related consumption products .. .. ..
Non-consumption products .. 3 037 3 037
.. Not available
Source: OECD Tourism Statistics (Database).

1 2 http://dx.doi.org/10.1787/888933641906

334 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018


From:
OECD Tourism Trends and Policies 2018

Access the complete publication at:


https://doi.org/10.1787/tour-2018-en

Please cite this chapter as:

OECD (2018), “Egypt”, in OECD Tourism Trends and Policies 2018, OECD Publishing, Paris.

DOI: https://doi.org/10.1787/tour-2018-48-en

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