Travel and Tourism in Egypt to 2018

Travel and Tourism in Egypt to 2018

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Political revolution in 2011, which led to the end of the rule of the country's fourth president, Hosni Mubarak, resulted in significant challenges for the Egyptian travel and tourism sector. Social and political conditions improved in 2012 and the tourism sector showed signs of recovery, but the situation deteriorated again in 2013 due to further unrest. Conditions in the country have improved since July-August 2013, and Timetric expects a slow return to growth over the forecast period (2014-2018).

Key Highlights
  • Political unrest adversely affected the Egyptian economy in 2011 and 2013. The growth in gross domestic product (GDP), which increased at a rate of 5.1% in 2010, slowed to 1.8% in 2011. Travel and tourism, a major economic contributor, was affected, with international arrivals decreasing at a rate of 33.2% in 2011 owing to the unrest and the country's negative image portrayed in the worldwide media. As the situation improved post revolution, the country registered a return to growth and signs of recovery in 2012. However, further unrest in July 2013, which led to the ousting of Mohamed Morsi from power by the military, hampered economic growth and tourist flows in the country once again.
  • Egypt has a variety of natural landscapes and cultural heritage sites. It is home to seven UNESCO World Heritage sites, including the Pyramid fields from Giza to Dahshur, Nubian Monuments at Abu Simbel and Wadi Al-Hitan. Egypt's cultural and archaeological heritage is also a tourist attraction and work has been ongoing to restore and renovate key sites. The Pyramid of Khafre, also known as the Pyramid of Chephren, was reopened in October 2012 after 10-year-long renovation work, to strengthen the ailing Egyptian tourism sector.
  • Despite the political unrest, domestic tourism in Egypt performed well. The number of domestic trips increased from 12.4 million in 2009 to 15.0 million in 2013, due to government efforts to promote domestic tourism such as offering discounts to citizens at key tourist destinations, and discounts offered by hotels to make-up for the losses registered due to the lack of international tourists. The average expenditure per domestic tourist in Egypt increased at a review-period CAGR of 5.70%.
  • The revolution in Egypt in 2011 drove a number of countries, including the US and the UK, to issue travel warnings, advising residents not to travel to the country. Political unrest in 2013 damaged the country's reputation further. Easing foreign travelers' concerns over safety and security is a major challenge facing the Egyptian tourism sector. According to the World Economic Forum's Travel and Tourism Competitiveness Index for 2013, Egypt ranked last (140 out of 140 countries) in terms of safety and security. However, in October 2013, the Tourism Ministry announced the lifting of travel warning by 13 countries, including Germany, Hungary, Denmark, the Netherlands and Finland.
  • The Egyptian aviation market experienced a number of challenges during the review period. In 2009, total revenue generated in the market declined by 2.20%, primarily due to the global economic downturn and uncertain economic scenario. However, it recovered in 2010 with 6.55% growth, driven by the increase in passenger volumes in all segments. In the same year, revenue generated by the country's low-cost airlines rose by 33.65%, driven by the increase in demand for economic and affordable travel by business and leisure tourists.
  • Political and social unrest also adversely impacted the Egyptian hotel market. Travel warnings issued by a number of countries, advising citizens not to travel to Egypt, led to a decline in tourist volumes, subsequently limiting business for hotels. During the review period, total hotel revenue generated fell at a CAGR of 11.87%, from EGP19.3 million (US$3.74 million) in 2009 to EGP12.5 million (US$1.83 million) in 2013. The largest fall in revenue, at a rate of 40.90%, was recorded in 2011.
  • Political uncertainty and a decline in business activity affected business car rentals, which posted the largest decline at a review-period CAGR of -3.08%. The majority of car rentals in Egypt were made at non-airport locations, with sales from such rentals accounting for 66.3% of the total market value in 2013. However, poor road conditions and chaotic traffic systems discouraged tourists from renting cars, instead leading to a preference for taxis.
  • Conventional travel service providers dominated the industry in 2013 with 90.3% of the market value, while online service providers accounted for the remaining 9.7%. However, online service providers registered significant growth during the review period, at a CAGR of 24.64%. This growth was primarily driven by the country's high internet penetration rate of 35.6%, in comparison to neighboring countries.

This report provides an extensive analysis related to the tourism demands and flows in Egypt:
  • It details historical values for the Egyptian tourism sector for 2009-2013, along with forecast figures for 2014-2018.
  • It provides comprehensive analysis of the travel and tourism demand factors with values for both the 2009-2013 review period and the 2014-2018 forecast period.
  • The report provides a detailed analysis and forecast of domestic, inbound and outbound tourist flows in Egypt.
  • It provides employment and salary trends for various categories of the travel and tourism sector.
  • It provides comprehensive analysis of the trends in airline, hotel, car rental and travel intermediaries industries, with values for both the 2009-2013 review period and the 2014-2018 forecast period.
Reasons to Purchase
  • Take strategic business decisions using historic and forecast market data related to the Egyptian travel and tourism sector.
  • Understand the demand-side dynamics within Egypt's travel and tourism sector, along with key market trends and growth opportunities.
  • Identify the spending patterns of domestic, inbound and outbound tourists by individual categories.
  • Analyze key employment and compensation data related to the travel and tourism sector in Egypt.

Table of Contents

1 Executive Summary
2 Travel and Tourism Sector In Context
3 Country Fact Sheet
4 Tourism Flows
4.1.1 Domestic tourism
4.1.2 Inbound tourism
4.1.3 Outbound tourism
4.2.1 Several countries removed travel warnings
4.2.2 Sharp decline in August 2013
4.2.3 Cruise tourism
4.2.4 Optimism drives Ministry of Tourism's promotional efforts
4.2.5 Ministry's efforts to revive domestic tourism
4.3.1 Domestic tourism
4.3.2 Inbound tourism
4.3.3 Outbound tourism
5 Airlines
5.2.1 EgyptAir suffered losses
5.2.2 Launch of new routes
6 Hotels

Companies Mentioned:

Air Arabia Egypt
EGYPTAIR Holding Company
Air Cairo
EgyptAir Express
Nile Air
InterContinental Hotels Egypt
Fairmont Hotels & Resorts Egypt
Starwood Hotels & Resorts Egypt
Accor Hotels Egypt
Hilton Hotels Egypt
Europcar Egypt
Maneuver Rent a Car
Budget Rent-A-Car Egypt
Hertz Car Rental Egypt
Smart Limo
Quest Travel
Samo Egypt Tours
Sun East Tours
Nicolas Tours
Sunrise Tours