Egypt tourism continues on the rise

August 26, 2008 · Filed Under Egypt tourism

The number of people visiting Egypt increased more than 25 percent in the financial year 2007/8, compared with the previous year. The country has not yet seen any slowdown in tourism because of slower growth in the European or U.S. economies, according to Tourism Minister Zoheir Garrana.

The consumer price index rose 22 percent in the year to June and the Egyptian pound has appreciated about 3 percent against the dollar since the start of the year. Garrana said that for the sake of tourism he would like to see the pound-dollar exchange rate at seven or eight pounds to the dollar, compared with about 5.3 pounds now.

Tourism accounted for 6.5 percent of Egypt’s gross domestic product in 2007, World Bank figures show. It employs directly or indirectly about 13 percent of the workforce. The government estimates that every extra million tourists create 200,000 new jobs.

One of the biggest growth areas has been tourism from Russia, which now accounts for more tourists to Egypt than any other country. Russian tourists numbered 1.5 million in calendar 2007, overtaking Britain, and Garrana said he expected that to rise to 2 million in calendar 2008.

By the end of 2008 the number of hotel rooms in Egypt will increase to 240,000 from 203,000 now.

Reuters Africa