Tourism SectorDevelopments

American Chamberof Commerce in Egypt

B S A CBusiness Studies & Analysis Center

IN EGYPT

January 2005Tourism

Sector Developments

BS

AC

Business Studies & Analysis Center

The Business Studies Series of the American Chamber of Commerce in Egypt provides accurate, timely and concise informa-tion on a specific sector or economic issue to the benefit of doing business in Egypt. Potential opportunities are highlightedand strengths and weaknesses are put in perspective. Recommendations are presented as conveyed from sector specialists.

Tourism Sector Developments in Egypt January 2005

Bank Rankings December 2004

Financial Reform Conference Proceedings December 2004

The Textile & Clothing Industry in Egypt August 2004

The Petroleum Industry in Egypt December 2003

The Construction Sector in Egypt September 2003

The Tourism Sector in Egypt August 2002

Information Technology in Egypt April 2002

The Insurance Sector in Egypt August 2001

Telecommunications in Egypt July 2001

The Egyptian Capital Market June 2001

The Egyptian Pharmaceutical Industry February 2001

Solid Waste Management in Egypt September 2000

The Egyptian Petroleum Industry August 2000

Egypt - U.S Trade Statistics May 2000

Egypt 2000: The Stable Emerging Market March 2000

Egypt - U.S. Trade Relations March 2000

Exporting to COMESA and South Africa February 2000

The Egyptian Banking Sector September 1999

The Dairy Sector in Egypt June 1999

The Egyptian Capital Market June 1999

The Egyptian Insurance Sector June 1999

East Port Said International Distribution Center March 1999

Mega Projects in Egypt: New Horizons for Development February 1999

2 0 0 2 / 0 5 P U B L I C A T I O N S

1 9 9 9 P U B L I C A T I O N S

2 0 0 0 / 0 1 P U B L I C A T I O N S

BOARD OF GOVERNORS2003 / 2005

PRESIDENTTaher Helmy, Helmy, Hamza & Partners (Baker & McKenzie)

EXECUTIVE VICE PRESIDENTSDan McCarthy, General Motors Egypt

M. Gamal Moharam, Egyptian Commercial Bank

VICE PRESIDENT, MEMBERSHIPAnis Aclimandos, Transcentury Associates

VICE PRESIDENT, PROGRAMSOmar El Derini, FAOM Consult/Red Wing

VICE PRESIDENT, LEGAL AFFAIRSThomas Thomason, InterGen

TREASURERYasser El Mallawany,

EFG- Hermes Private Equity

MEMBERS of the BOARDHesham Mekawi, BP Egypt

Mohamed Taymour, EFG-Hermes HoldingsLoula Zaklama, RadaResearch & Public Relations Co.

Rodney Eichler, Apache Egypt CompaniesJames Pringle, M.A. Kharafi Group

PAST PRESIDENTMohamed Mansour, Mantrac

EXECUTIVE DIRECTORHisham A. Fahmy

JANUARY 2005

PRODUCED BY THE AMERICAN CHAMBER OF COMMERCE IN EGYPTBusiness Studies & Analysis Center

Khaled F. Sewelam, Manager

Research Supervisor

Amira A. Sheha

Assistant Economic Researchers

Dina Mansour

Nancy Fahmy

Administrative Assistant

Rania Sabsouba

RESEARCHED BYMONA M. MANSOUR

MAIN SPONSORS

ASSOCIATE SPONSORS

Tight economic conditions in some major tourism generating markets together with the 9/11 events in theU.S., and the subsequent wars in Afghanistan and Iraq have dampened the growth of global tourism. Egypthas no doubt been affected by these international developments, experiencing below average growth rates intourism activity. Nevertheless, tourist arrivals were 10 times higher than the global average during 2000 –2003, and attracted some 25% of tourist arrivals to the Middle East.

SECTOR HIGHLIGHTS

• Tourism activity is a major contributor to GDP, employment and investment and the largest foreign cur-rency earner in Egypt.

• The appointment of the new body of the Ministry of Tourism in July 2004 signifies the start of a solid long-term vision for the tourism sector in Egypt.

• The European market constitutes the largest generating market for International Tourist Arrivals (ITA) toEgypt.

• Air travel is the most popular mode of transportation for ITA to Egypt, accounting for 80% of all travel tothe country.

• Egypt is a rich destination in the multi-attractions market, offering cultural, leisure, business, health, studyand other touristic activities.

• Recreation is the major reason for visiting Egypt – although MICE tourism is gaining huge momentum

• On the supply side, accommodation capacity grew at an average annual rate of 7% during 2000 – 2003, out-pacing tourism demand growth by 4%.

THE AMERICAN CHAMBER OF COMMERCE IN EGYPT

Business Studies & Analysis Center

33 Soliman Abaza Street • Dokki • Cairo • EgyptTel: (20-2) 338-1050 • Fax: (20-2) 338-9895

Website: www.amcham.org.eg • E-mail: studies@amcham.org.eg

January 2005Tourism

Sector Developments

BS

AC