Middle East visitors to Egypt to increase 50% by 2022, ATM report reveals
Arrivalsfrom Middle East to Egypt to grow by 11% CAGR to 2.23 million by 2022
Growthfuelled by cheaper Egyptian pound and government incentives for charter airlines operating international flights
Arrivalsfrom the Middle East to Egypt are expected to increase 50% from 1.49 million in2018 to 2.23 million in 2022 with visitors from Saudi Arabia driving thisgrowth, according to data published ahead of Arabian Travel Market 2019,which takes place at Dubai World Trade Centre from 28 April â€“ 1 May 2019.
Whilearrivals from Europe are expected to be the largest contributor on a regionalbasis, increasing from 6.2 million in 2018 to 9.1 million tourists in 2022, thelatest research from Colliers International revealed arrivals from the MiddleEast will actually witness the highest Compound Annual Growth Rate (CAGR) at11%.
DanielleCurtis, Exhibition Director ME, Arabian Travel Market, said: Overthe last 12 months, Egyptâ€™s tourism industry has witnessed healthy and steadygrowth, with arrivals up 14.5% from 8.3 million in 2017 to 9.5 million in 2018.Growth has been fuelled by the cheaper Egyptian Pound and government incentivesfor charter airlines operating international flights.
Addingto this, we are witnessing this growth first hand at ATM with the total numberof attendees coming from Egypt increasing 16% YoY.
Takingadvantage of this resurgence in tourists are some of Egyptâ€™s most prominenttourism companies including Dana Tours, Nicolas Tours and Standard Tours whowill exhibit at ATM 2019 â€“ and of course the Egyptian Tourism Promotion Boardwho will have a major presence too.
Egypt tourism capitalinvestment is estimated to reach US$ 4.2 billion (EGP75bn) in 2019, up 25 percent on 2018, as the country strives to keep pace with an ongoing leisuretravel boom and GDP growth.
The data from Colliersrevealed that Egyptâ€™s total tourism revenue will increase at a CAGR of 16.5%between 2018 and 2022 â€“ outperforming the business segment. During 2017 and2018, the leisure spend was US$ 13.79 billion (EGP 239bn) and US$ 16.67 billion (EGP289 bn) respectively, while business totaled US$ 1.93 billion (EGP 33.5bn) and US$2.36 billion (EGP 41bn) over the same period.
The overall revenuegenerated by the leisure segment in 2018 represented 87% of total tourism spendand we expect this growth to continue as a series of new government and privatesector attractions and investments are unveiled â€“ including the development ofnew airports and new luxury hotel resorts in Red Sea destinations Sharm ElSheikh and Hurghada, Curtis said.
Egypt has a diverse range ofsource markets â€“ decreasing the risk of being over-reliant on one specificmarket. Germany, Russia, the UK and Italy are Egyptâ€™s top four source markets,with the first and last in top gear â€“ both growing 29% in 2018 â€“ and showingthe highest CAGR growth of 11%.
The UK, which recorded justa 4% increase in arrivals between 2017 and 2018, has traditionally been along-standing major source market for the Red Sea resort of Sharm El Sheikh. However, anongoing ban on direct flights between the two destinations has stifled visitornumbers.
Curtis added: It is hopedthe recent resumption of Serbian flights to Sharm El Sheikh after a six-yearabsence and the introduction of Turkish Airlinesâ€™ daily flight from Moscow tothe Red Sea via Istanbul, will kick-start direct flights between the UK andEgypt, and of course Russia and Egypt.
ATM, considered by industry professionals as a barometerfor the Middle East and North Africa tourism sector,welcomed over 39,000 peopleto its 2018 event, showcasing the largest exhibition in the history of theshow, with hotels comprising 20% of the floor area.