Sector Overview

Egypt’s tourism industry is among the most diverse and vibrant in the world. Beyond the pristine beaches

and year-round sunshine, Egypt’s long and varied history, rich cultural heritage and unique geographic

features make it a popular destination for adventure, eco, sailing, diving, health and cultural tourism — and

for religious tourism to sites of importance to Christians and Muslims alike.

Although well-served by five-star properties, there is considerable room for investment in the three- and

four-star hospitality segments. Other highly promising sectors include residential tourism, operating

therapeutic tours, nature/desert safari, eco-tourism adventures and the like.

Tourism currently accounts for 11.3% of Egypt’s GDP directly and indirectly, which provides the country

with a share of 21.4% of foreign currency and a share of 44.1% of the non-tradable exports. In 2008/09,

tourism generated receipts worth in excess of USD 10.5 billion and revenues are expected to increase

substantially in the coming years as both the number of tourists and the average duration of stay are on the

rise. Tourism also contributes with 4% of total investment and 13% of the total investments of production

services, where the private sector investments play a major role with around 73% of these investments.

A labor-intensive industry, tourism employs nearly 12.6% of total employed population both directly and

indirectly, generating income in supporting sectors including financial services, construction, security,

handicrafts, food and beverages.

Though leisure tourism remains the largest market segment, business and conference tourism is on the rise,

as is health tourism, with Cairo as an ascendant healthcare hub within the region. Egypt alone accounts for

25% of all visitors to the Middle East and 33% of visitors to North Africa.

Europe is the primary tourist-exporting market for Egypt, with Russian tourists accounting for the largest

share of arrivals from a single country at 14%, followed by the United Kingdom and Germany at 9%.

Rising prosperity in the Gulf has spurred growth in Arab tourist arrivals, and a growing number of

Egyptians are vacationing within the country each year.

The Ministry of Tourism has set ambitious goals for the next seven years. By 2020, Egypt intends to double

the current inflow of tourists to 25 million from 12.5 million in 2009. Additionally, the Ministry is targeting

to achieve 240000 room to accommodate 14 million visitor by 2011.

Egypt is currently among the top 25 destinations worldwide, accounting for approximately 1% of the global

tourism market. The goal is to increase Egypt’s share of