Tourism receipts account for almost 5% of GDP, though many unofficial sources estimate its share at around 15%. It is one of the most dynamic sectors of the economy, generating large number of jobs and at least 8% of all jobs are connected to tourism.
Western Europe is Egypt 's largest tourist market, and in recent years has accounted for two-thirds of arrivals. The number of tourists visiting Egypt amounted to 1,054,025 over the period Jan-March 2002 and the total number of tourist nights amounted to 7,045,140 over the same period.
Egypt has the potential to earn larger sums from tourism but the growth of the sector has been hampered by outbreaks of violence in the region. Tourist arrivals have dropped lately and many reservations were cancelled in response to the September 11th attacks on the US , and the violence in the West Bank , and Gaza . However, according to the ministry of tourism, mid to long-term prospects for the industry are bright. Government and private business have ambitious plans to increase the average growth rate in the sector to 12% over the next five years, expanding tourist arrivals to 9.5 with visitors spending 66.5m nights and generating around US$7.6bn in revenue.
Egypt has traditionally relied on its archaeological heritage to attract tourists, but is now attempting to diversify in order to increase the prospect of repeat visits. Beach tourism now rivals historical tourism, and major hotel constructions continue along the Sinai and Red Sea coasts, which host some of the world's finest coral reefs. The prevailing domestic credit crunch and overbuilding in some new resort areas has led to a slowdown in new construction, but the Red Sea resorts are likely to attract increasing numbers of tourists.
Realizing the enormous opportunities in the sector, both the government and the private sector worked hard to enhance tourism services. The majority of the development has taken place in Sinai and the Red Sea coast. The recent government plans call for an increase in room capacity over the next five years to around 140,000 rooms that will serve to accommodate more tourist arrivals.
Following is a breakdown of tourist arrivals by region:
In Thousands
|
1998/99 |
1999/2000 |
2000/2001 |
No. of Tourist Arrivals |
4266 |
5311 |
5347 |
European Countries |
2282 |
3241 |
3501 |
Eastern Europe |
242 |
298 |
369 |
Western Europe |
2040 |
2943 |
3132 |
Middle East Countries |
1388 |
1303 |
1070 |
African Countries |
150 |
148 |
145 |
Americas |
244 |
315 |
325 |
Asia & Pacific |
200 |
301 |
304 |
Other Countries |
2 |
3 |
2 |
Source: Central Bank of Egypt
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