BLOCK A Course: Bangladesh Studies

Understanding Tourism Economy Dynamics: Egypt

Prepared for Sheikh Morshed Jahan Associate Professor

Prepared by Bhaskar Kumar Dey oll: ! "# Section: B $mail: %haskar&dey'hotmail(com Contact )um%er: *+",-*#..*-

BBA +/th Batch 0nstitute of Business Administration 1ni2ersity of Dhaka

+. May 3*+3

Table of Contents
4a%le of Contents(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( i $5ecuti2e Summary((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( ii +(*0ntroduction:(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( + +(+ Country O2er2ie6 ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((+ +(+(+ 7eogra8hical Location(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((+ +(+(3 Po8ulation(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 3 +(+(9 Ma:or Sectors of $gy8t(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((3 +(3 4ourism(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 9 +(3(+ Definition(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( 9 +(3(3 4ourism in $gy8t((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((9 +(3(9 Position of $gy8t;s 4ourism Sector((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((9 +(3(9(+ Positioning Com8ared to Other Sectors((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((9 +(3(9(3 0nternational Positioning((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((3(*$2aluating Sustaina%le 4ourism in $gy8t((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((, 3( + 4he <Product; Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((, 3(3 4he Social Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((# 3(9 4he 0nfrastructure Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((" 3(- 4he Marketing Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((/ 3(, 4he Management Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((. 3(# 4he $conomic Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((. 3(" 4he Su88ort 0ndustry Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((+* 3(/ 4he $n2ironment Dimension((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((+* 3(. 4he Policy and egulatory =rame6ork Dimension(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((++ 9(*Conclusion(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( +3 9(+ Pro%lems 6ith the 4ourism Sector((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((+3 9(3 ecommendations((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( +9 Bi%liogra8hy (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( +-

Executive Summary
EGYPT: Where it all begins 4he Ara% re8u%lic of $gy8t is a transcontinental country and a ma:or 8o6er in Africa> the Mediterranean Basin> the Middle $ast and the Muslim 6orld( 4ourism is one of the ma:or sectors of the country( 0t acts as the highest foreign currency generator for $gy8t( 0n the fiscal year of 3*++> it earned 1S ?/#/,(# million 6orth of foreign currency( Des8ite a num%er of Clear Strengths> $gy8t ranks a lo6 #-th o2erall of +99 countries in the 4ra2el and 4ourism Com8etiti2eness 0nde5( Constitutes +@ of the 6orld tourism industry(

Evaluating Egypts tourism sector from important dimensions Product Dimension: =rom the 8ers8ecti2e of this dimension $gy8t;s tourism can %e categoriAed in the follo6ing ty8es of tourism: Bistorical> Cultural> S8orts> Safari> ecreational> Conference and $5hi%ition> eligious> Modern( Social Dimension: 4he culture of $gy8t has thousands of years of recorded history( Ancient $gy8t 6as among the earliest ci2iliAations( At 8resent> .*@ of $gy8tCs 8o8ulation is Muslim> 6ith a Sunni ma:ority( A%out .@ of the 8o8ulation is Co8tic ChristianD other religions and other forms of Christianity com8rise the remaining one 8ercent( Infrastructural Dimension: 4o co8e 6ith the demand for tourism> 6ith the hel8 of the 8ri2ate sector> recent im8ro2ement in infrastructures such as: %uilding ne6 resorts> ha2e %een taking 8lace in $gy8t( Marketing Dimension: $gy8t is already kno6n 6orld6ide for its 8yramids and ancient ruins( Bo6e2er> in an effort to e58and its tourism %usiness %eyond these> $gy8t has re%randed its tourism sector and introduced a ne6 identity for its tra2el marketing in 3*+*( Management Dimension: Se2eral management authorities such as 4he $gy8t 4ourism =ederation> $gy8t 4ourist Authority> and 4ourism De2elo8ment Authority e5ist in the country( Economic Dimension: 4ourism in $gy8t contri%utes to a%out .@ of the 7DP( Besides %eing the highest foreign currency earning sector> it is also a ma:or sector in terms of em8loyment generation( ii

 The Support Industry Dimension: 2arious su88ort industries for tourism such as tra2el agencies> telecommunication ser2ices> hotel ser2ices etc( are 6idely esta%lished 6ithin the country( Environment Dimension: 6aste dis8osal in ne6 tourist centers along the eastern coast ha2e seriously degraded the 6ater Euality of the ed Sea( 0n addition> large concentrations of tourists threaten the fragile desert areas and the marine corals along the coast( 4o add to that there has also %een deteriorations of the ancient monuments such as 8yramids and other artifacts( Policy and Regulatory Frame ork: 4he go2ernment has a se8arate Ministry of 4ourism in $gy8t 6hich go2erns and designs 8olicies for this sector(

The

urrent

risis:

At Present the ma:or concern for $gy8t;s tourism sector is the negati2e 8u%licity caused %y the re2olution in the country in 3*++( $gy8t has 6itnessed a shar8 fall in the num%er of tourists since that occurrence( Other concerns also e5ist regarding congestion> the country;s lack of 8lanning on the go2ernment;s %ehalf> 8oor infrastructure including lack of midrange hotels( Egypt !hould: Do e5tensi2e 8romotional cam8aigns on an international le2el in 8ursuit of changing the negati2e 8erce8tion a%out $gy8t as a tourism destination caused %y the re2olution( 0n2est on la6 and enforcement to ensure utmost safety of the tourists( 0ncrease the rate of infrastructural de2elo8ments( 4ake 8roacti2e measures to 8reser2e the country;s ancient monuments( Continue on focusing in di2ersifying and e58anding to 2arious ty8es of tourism(

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"#$ %ntroduction:
"#" ountry &vervie'

Egypt> officially the (rab )epublic of Egypt> is a country mainly in )orth Africa> 6ith the Sinai Peninsula forming a land %ridge in South6est Asia( $gy8t is thus a transcontinental country> and a ma:or 8o6er in Africa> the Mediterranean Basin> the Middle $ast and the Muslim 6orld( Co2ering an area of a%out +>*+*>*** sEuare kilometers F9.*>*** sE miG> $gy8t is %ordered %y the Mediterranean Sea to the north> the 7aAa Stri8 and 0srael to the northeast> the ed Sea to the east> Sudan to the south and Li%ya to the 6est( $gy8t is one of the most 8o8ulous countries in Africa and the Middle $ast( 4he great ma:ority of its 8eo8le li2e near the %anks of the )ile i2er> in an area of a%out -*>*** sEuare kilometers F+,>*** sE miG> 6here the only ara%le land is found( 4he large areas of the Sahara Desert are s8arsely inha%ited( A%out half of $gy8tCs residents li2e in ur%an areas> 6ith most s8read across the densely 8o8ulated centers of greater Cairo> Ale5andria and other ma:or cities in the )ile Delta( $gy8t is famous for its rich history of ancient ci2iliAation> 8haraohs and the 8yramids( Monuments in $gy8t such as the 7iAa 8yramid com8le5 and its 7reat S8hin5 6ere constructed %y its ancient ci2iliAation( 0ts ancient ruins> such as those of Mem8his> 4he%es> and Karnack and the Halley of the Kings outside Lu5or> are a significant focus of archaeological study( 4he tourism industry and the ed Sea i2iera em8loy a%out +3@ of $gy8tCs 6orkforce( 0n early 3*++> $gy8t under6ent a re2olution> 6hich resulted in the ousting of President Bosni Mu%arak after nearly 9* years in 8o6er( FIiki8ediaG

"#"#" Geographical *ocation 4he 7eogra8hy of $gy8t relates to t6o regions: South6est Asia and )orth Africa( $gy8t has coastlines on %oth the Mediterranean Sea and the ed Sea( 4he country %orders Li%ya to the 6est> the 7aAa Stri8 and 0srael to the east> and Sudan to the south( Co2ering +>**+>--. km3> $gy8t has a land area a%out the same as that of 4e5as and )e6 Me5ico com%ined> four times %igger than that of the 1nited Kingdom> and t6ice as %ig as that of =rance( 4he longest straight&line distance in $gy8t from north to south is +>*3- km> 6hile that from east to 6est measures +>3-* km( More than 3>.** km of coastline on the Mediterranean Sea> the 7ulf of SueA> the 7ulf of AEa%a and the ed Sea constitute $gy8tCs maritime %oundaries(

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"#"#+ Population $gy8t has a 8o8ulation of /9>#//>+#- FJuly 3*+3 est(G 6ith a%out half of them li2ing in ur%an areas( 4he 8o8ulation gro6th rate is +(.33@(

4he age structure and the median age of the 8o8ulation are as follo6s( Age structure: *&+- years: 93("@ Fmale +9>"3,>3/3Kfemale +9>++3>+,"G +,&#- years: #3(/@ Fmale 3#>+/">.3+Kfemale 3,>9,9>.-"G #, years and o2er: -(,@ Fmale +>##.>9+9Kfemale 3>*9+>*+#G F3*++ est(G Median age: total: 3-(9 years Male: 3- years> =emale: 3-(# years F3*++ est(G FSource: C0A =act BookG "#"#, -a.or !ectors of Egypt 4he =O1 main economic sectors of $gy8t are as follo6s: Agricultural sector 0ndustrial sector o o o o o Automo%iles manufacturing Chemicals Consumer electronics and home a88liances Steel industries 4e5tiles and clothing

Construction and contracting sector Ser2ices sector o o o o Banking L insurance Communications 4rans8ort Tourism sector

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"#+ Tourism "#+#" Definition Tourism is tra2el for recreational> leisure or %usiness 8ur8oses( 4he Iorld 4ourism OrganiAation defines tourists as 8eo8le Mtra2eling to and staying in 8laces outside their usual en2ironment for not more than one consecuti2e year for leisure> %usiness and other 8ur8osesM(

"#+#+ Tourism in Egypt $gy8t offers a di2erse range of tourism acti2ities( Most 8eo8le 6ho think of $gy8t think of antiEuities> %ut $gy8t offers much more( Certainly it is a 8rime location to see our great heritage from the ancient 6orld> including Pyramids and 6onderful tem8les> %ut it is also 8art of the Boly Land> and tours to Christian and other religious monuments are 8o8ular( Net $gy8t also offers nature and desert treks> great scu%a di2ing and e2en golf> fishing and %irding e58editions( One may choose to rela5 on the 6ondrous $gy8t ed Sea or Sinai coasts> take in the high culture of Cairo> or e2en leisurely float do6n the $gy8tian )ile on a lu5urious ri2er %oat( "#+#, Position of Egypts Tourism !ector "#+#,#" Positioning ompared to &ther !ectors 4he $gy8tian tourism industry is one of the most im8ortant sectors in the economy> in terms of high em8loyment and incoming foreign currency( 4he go2ernment acti2ely 8romotes foreign tourism since it is a ma:or source of currency and in2estment( 4here are 8lans to attract to +- million 2isitors %y 3*++( 4he follo6ing diagram sho6s the com8arison %et6een the tourism and other sectors in terms of foreign e5change earnings:

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1.2.3.2 International Positioning $gy8t> a country so rich in cultural heritage> ranks a lo6 #-th o2erall of +99 countries in the 4ra2el and 4ourism Com8etiti2eness 0nde5 and this is des8ite a num%er of clear strengths %eyond the cultural richness( As $gy8t has e5cellent 8rice com8etiti2eness> ranked ,th o2erall 6ith lo6 com8arati2e 8rices o2erall> including fuel 8rices( =urther> the go2ernment is 8rioritiAing the sector> 6ith relati2ely high go2ernment s8ending on tra2el L tourism and ensuring the countryCs 8resence at ma:or tourism fairs( 4his le2el of 8rioritiAation is reflected in some 8olicy areas such as the fa2ora%le 8olicy on 2isa reEuirements( On the other hand> the countryCs infrastructure is underde2elo8ed> 8articularly tourism infrastructure F/,thG( An u8grading of the Euality of the countryCs human resources a2aila%le to 6ork in the sector> ranked #.th> 6ould also im8ro2e the countryCs o2erall tra2el and tourism com8etiti2eness( O $gy8t Occu8ied the se2enth 8lace among African countries in terms of com8etiti2e inde5 according to the Africa com8etiti2eness re8ort 3**. issued %y 6orld economic forum( O $gy8t re8resents -@ of the annual increase in international tourist flo6s( Besides the $gy8tian tourism re8resents +@ of the 6orld tourism market(

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+#$ Evaluating !ustainable Tourism in Egypt

!ustainable tourism is tourism attem8ting to make a lo6 im8act on the en2ironment and local culture> 6hile hel8ing to generate future em8loyment for local 8eo8le( 4he aim of sustaina%le tourism is to ensure that de2elo8ment %rings a 8ositi2e e58erience for local 8eo8le> tourism com8anies and the tourists themsel2es(

Harious as8ects need to %e considered to %e :udged $gy8t;s standings in terms of %uilding a sustaina%le tourism industry( 4he follo6ing sections ela%orate on some im8ortant as8ects(

+# " The /Product Dimension

4ourism in $gy8t 6hen considered from the 8roduct dimension can %e di2ided into se2eral categories or se2eral <8roducts; chiefly %ased on the o%:ecti2e of 2isit of the tourists( 4he categories of the tourism 8roducts ha2e %een discussed %elo6( Peo8le 2isit $gy8t for 2arious tourism reasons( 4he follo6ing are :ust %rief descri8tion of each( Bistorical 4ourism: $gy8t is an o8en museum( 4he 8haraohs left a%undance of memorials and monuments in that museum( Also> 7reeks> omans> Persians> 4urks> Ara%s> =rench and British they ha2e 8assed through this land( 4hey left $gy8t 6ith a uniEue com%ination that no other country can match( 4here are hundreds of sites in $gy8t to %e 2isited the follo6ings are famous and :ust e5am8les: 4he Pyramids of 7iAa> S8hin5> the ste8 Pyramid of SaEEara> the tem8le of Karnak>Halley of Kings> Halley of Pueens> Ale5andria and its monuments such as Al Sa6ari column> Pait%ay Citadel> Al AAhar mosEue in Cairo> $gy8tian museum> Co8tic museum> 0slamic museum( Cultural 4ourism: =rom the four corners of 6orld tra2elers> Archaeologists> 6riters and scholars go to $gy8t and 6onder around its s8lendors and learn firsthand a%out Ancient $gy8t> its monument and its 2arious museums( ,JPage

+#+ The !ocial Dimension

4he culture of $gy8t has thousands of years of recorded history( Ancient $gy8t 6as among the earliest ci2iliAations( =or millennia> $gy8t maintained a strikingly com8le5 and sta%le culture that influenced later cultures of $uro8e> the Middle $ast and Africa( After the Pharaonic era> $gy8t itself came under the influence of Bellenism> for a time Christianity> and later> 0slamic culture( 4oday> many as8ects of $gy8tCs ancient culture e5ist in interaction 6ith ne6er elements> including the influence of modern Iestern culture( A%out .*@ of $gy8tCs 8o8ulation is Muslim> 6ith a Sunni ma:ority( A%out .@ of the 8o8ulation is Co8tic ChristianD other religions and other forms of Christianity com8rise the remaining one 8ercent( Although modern day $gy8tians are usually lum8ed together 6ith Mthe Ara%sM due to their language and 0slamic traditions> this is not com8letely accurate( 4here is a truly Bedouin Ara% grou8ing 6ithin $gy8t> 6ho are still largely nomadic tri%al 8eo8le li2ing in isolated oases and roaming through the countryCs 2ast desert regions( Many Bedouin Ara%s reside the Sinai Peninsula and along the ed Sea coast> across from Ara%ia( 4he $gy8tian language> 6hich formed a se8arate %ranch among the family of Afro&Asiatic languages> 6as among the first 6ritten languages> and is kno6n from hierogly8hic inscri8tions 8reser2ed on monuments and sheets of 8a8yrus( 4he Co8tic language> the last stage of $gy8tian> is today the liturgical language of the Co8tic Orthodo5 Church( Bierogly8hs 6ere 6ritten on 8eo8le;s front doors> so that the ne6s of the 8haraoh 6ould tra2el to e2eryone( Ara%ic came to $gy8t in the "th century> and $gy8tian Ara%ic has %ecome today the modern s8eech of the country( Of the many 2arieties of Ara%ic> it is the most 6idely s8oken second dialect> due to the influence of $gy8tian cinema and media throughout the Ara%ic&s8eaking 6orld( Literature 8lays an im8ortant role in sha8ing $gy8t;s society( 4he ancient $gy8tian literature dates %ack to the Old Kingdom> in the third millennium BC( eligious literature is %est kno6n for its hymns to and its mortuary te5ts( 4he oldest e5tant $gy8tian literature is the Pyramid 4e5ts: the mythology and rituals car2ed around the tom%s of rulers( 4he later> secular literature of ancient $gy8t includes the C6isdom te5tsC> forms of 8hiloso8hical instruction( All these uniEue societal attri%utes of $gy8t dra6s tourists from all 8arts of the 6orld(

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+#, The %nfrastructure Dimension

Maintaining the influ5 of tourists and increasing their rate of return is a challenge the country is eager to face( =or decades> $uro8eans ha2e flooded the 2arious ed Sea resorts and e58ressed a 6ide interest in Cairo and 188er $gy8tCs archaeological heritage( 4he influ5 of Ara% tourists during the summer season has not only increased hotel %ookings> %ut also the 8urchasing 8o6er in foreign currency( Iith the increasing com8etition from other Ara% countries> such as the 1A$ and Morocco> it has %ecome mandatory to 8reser2e $gy8tCs attracti2eness and de2elo8 the infrastructures that 6ill accommodate the increase in arri2als( One of the 6eaknesses in $gy8tCs tourism strategy that must %e addressed is the focus on increasing the num%er of tourists %y offering chea8 8ackages and 8oor ser2ices( 4hese 8ackages result in com8laints of 8oor ser2ice> 8ushy traders and 8oor standards> 6hich conseEuently lead to lo6 tourist> return rates( 0n 3**#> the ministry issued a re8ort saying the num%er of tourists returning to $gy8t & an im8ortant indicator of tourist satisfaction & 6as a dismal 3* 8ercent( As a result> the ministry has decided to deli2er educational 8rograms through a com%ination of online courses> aimed at furthering the de2elo8ment of $gy8tian industry 8rofessionals( 4his 8rogram is targeted at a select grou8 of -* general managers of full&ser2ice three& to fi2e&star hotels> and focuses on strategic hos8itality management and financial management( Other 8rograms aimed at training the industryCs 6orkers & hotelsC and restaurant staff> dri2ers of tourist %uses> etc( & are also in the 8lans( 4o meet the increase in num%ers of tourists> $gy8t must in2est in u8grading its infrastructure( An e5tra +,>*** hotel rooms 6ill %e needed annually> 6ith in2estments of a%out L$# %illion( 4his e58ansion 6ill no dou%t necessitate the acti2e 8artici8ation of the 8ri2ate sector( 4he e58ansion is indeed taking 8lace> through 8ri2ate sector com8anies that ha2e esta%lished full&fledged resorts in 8laces likes Burghada> Sahl Basheesh and Ain Sokhna> $l&!ayat said( Although esta%lishing hotels inside Cairo could %e more difficult due to the congestion and lack of s8ace> the initiati2e has still %een taken %y se2eral foreign in2estors( Catering to more 2isitors 6ill entail more than %uilding hotels( 0m8ro2ing the Euality of e5isting air8orts and increasing their ca8acity to recei2e more flights is another challenge( Analysts ha2e long called for the li%eraliAation of the a2iation industry and its 8olicies to realiAe its true 8otential( As a result of the intense com8etition %et6een tourism destinations 6orld6ide> easy access & and> therefore> efficient air trans8ort & has %ecome increasingly im8ortant to tourists deciding 6hich destination to choose( 4he re8ort suggested that li%erating the a2iation industry and ending the mono8oly of $gy8t Air> $gy8t s only national carrier could hel8 increase international arri2als %y 3 million annually( 4he I44C called for immediate changes> such as allo6ing flag carriers to o8erate more flights to Cairo and the region> allo6 more international charter flights and ending restrictions on 8ri2ately o6ned $gy8tian airlines( Ihile it might not ha2e conformed to all the I44CCs recommendations> $gy8t has taken ste8s to im8ro2e a2iation ser2ices( 4he %uilding of a third terminal at the Cairo 0nternational Air8ort is currently in 8rocess and follo6ing its com8letion at the end of 3**/> it should increase the air8ortCs ca8acity %y ++ million 8assengers annually( 4he Sharm $l&Sheikh> Burghada> Lu5or> "JPage

As6an and A%u Sim%el air8orts ha2e also %een u8graded( Still> there;s more 6ork to %e done for the nation;s tourism sector to really take off( F4he Daily )e6s $gy8t> 3*+*G

+#0 The -ar1eting Dimension

$gy8t 8romotes itself as a tourism destination e5tensi2ely and on an international scale through se2eral means such as 2iral 2ideos> 8rint media> social net6ork etc( 0t %rands itself as a destination effecti2ely(

F$gy8t 4ourism AuthorityG $gy8t is already kno6n 6orld6ide for its 8yramids and ancient ruins( Bo6e2er> in an effort to e58and its tourism %usiness %eyond these> $gy8t has introduced a ne6 identity for its tra2el marketing in 3*+*( 4he ne6 logo hints at another side of $gy8t including its little kno6n %each culture( Nes> $gy8t has %eautiful 6hite sand %eaches( )ot on the Mediterranean as you might e58ect> %ut along the shores of the ed Sea> the Sinai Peninsula and the 7ulf of AEa%a( 4he %rilliant %lue 6aters of $gy8t;s east coast are a far cry from the muddy )ile i2er> and seeing the moon rise o2er the mountains of Saudi Ara%ia across the ed Sea from )u6ei%a is one e58erience to cherish( 4his ne6 identity is not a%out the core e58erience 6e associate 6ith $gy8tD they already o6n that market share( 0t;s a%out getting 8eo8le to come %ack to $gy8t> to do something else there> or to di2ide a t6o&6eek 2acation %et6een touring cultural sites and rela5ing on the %each( 0t;s a%out attracting 8eo8le 6ho are more interested in 6arm> sunny 6eather and %eautiful %eaches than history( 0t could %e a 2ia%le alternati2e to the Cari%%ean> and this identity is designed to make the tourists think t6ice a%out it( $gy8t tourism authorities ha2e not %een slo6 to gra% the marketing o88ortunity in international e5hi%itions and trade sho6s( Along 6ith cam8aigns that 6ill run on 4H> in 8rint> and online( $gy8t has launched glo%al ad2ertising cam8aigns 6ith a series of slogans(

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$gy8t had suffered a short&term fall in tourism num%ers due to its recent 8olitical unrest( Bo6e2er the tourism ministry has %een 6orking sincerely to reco2er from it> 6ith tour o8erators and airlines offering full 8rograms( Besides %eing a historical and natural tourism destination> $gy8t also tries to 8romote itself for its cultural tourism %y 8romoting its religious and societal outlook(

+#2 The -anagement Dimension

Many organiAations in $gy8t ha2e %een 6orking 6ith the management of tourism in the country alongside the Ministry of 4ourism( 4he $gy8t 4ourism =ederation> $gy8t 4ourist Authority> 4ourism De2elo8ment Authority are namely a fe6( OrganiAations as such deal 6ith the country;s tourism from a 8rofessional 8ers8ecti2e and 6ork dedicatedly to manage the 8ro%lems and %uild on the 8ros8ects of tourism in $gy8t(

+#3 The Economic Dimension

4ourism is an e5tremely im8ortant sector for $gy8t from the economic 8ers8ecti2e( 0t has su%stantial contri%ution to the economy from 2arious 8ers8ecti2es( O O2er the last t6o decades> tourism has 8ro2en to %e a fast gro6ing economic sector> 6ith an a2erage gro6th of 3,@ 8er year in arri2als o2er the 8ast - years and a 93(,@ increase in recei8ts( O 4ourism in $gy8t has long %een a dri2ing engine of gro6th and one of the largest sources of foreign currencies( 0ts share re8resents +.(9@ of total income of foreign currencies( 4he follo6ing ta%le sho6s the foreign currency earned %y the tourism sector o2er the 8ast years(

F$uromonitor> 3*+3G O 4he tourism sector is considered as one of the 8rinci8al generators of em8loyment> accounting for +3(#@ of the em8loyed 8o8ulation( 4ourism as a la%or intensi2e industry creates :o%s in almost "* related sectors( O 4ourism industry effecti2ely contri%uted to generating 2alue added> :o% o88ortunities and enhancing $gy8tCs %alance of 8ayments as 6ell as %oosting tourism industry&related industries and acti2ities through 6hat is kno6n as tourism multi8lier(

.JPage

O 4ourism sector contri%ution to 7DP & at factor cost in constant 8rices Q increased in 3**.K3*+* to .@ from -@ in 3**/K3**.> and it gre6 %y +3@ in 3**.K3*+* from +(9@ only in 3**/K3**.( O 4he sector is gro6ing %etter than the economy as a 6hole in all years a%o2e e5ce8t in =N 3**/K3**. as it recorded a rate of +(9@ 2s( -("@ as for the economy( O 0n s8ite of the serious conseEuences of the financial crisis> the tourism sector succeeded in achie2ing remarka%le tourism re2enues in =N 3**/K3**. to reach 1S?+*(,%n do6n from 1S?+*(/%n in =N 3**"K3**/ and the sector continued its gro6th to reach 1S?++(#%n in =N 3**.K3*+*( FAle5Bank> 3*+*G

+#4 The !upport %ndustry Dimension

4he tourism industry of $gy8t is su88orted %y 2arious other industries :ust like any other successful tourism destinations( 0ndustries such as hotels> trans8ortations> tra2el agencies> telecommunications etc( are 2ital su88ort for the tourism industry in any country as 6ell as $gy8t( 4he esta%lishment and a2aila%ility of such industries in $gy8t has %een essential for the gro6th of its tourist sector(

+#5 The Environment Dimension

4ourism 8ro2ides an im8ortant source of re2enue for economic gro6th( Bo6e2er> 8oorly controlled construction and 6aste dis8osal in ne6 tourist centers along the eastern coast ha2e seriously degraded the 6ater Euality of the ed Sea( 0n addition> large concentrations of tourists threaten the fragile desert areas and the marine corals along the coast( 4o add to that there has also %een deteriorations of the ancient monuments such as 8yramids and other artifacts( 4ourism has %ecome one of $gy8t<s main sources of income and has undergone ra8id 8ri2atiAation and su%seEuent gro6th( 4his has resulted in numerous 8olicy and im8lementation ga8s including those in en2ironmental 8olicy( $gy8t<s natural resources are thus threatened %y this unsustaina%le tourism gro6th( +* J P a g e

4he coastal tourist industry in $gy8t is %ooming> and large e58anses ha2e %een de2elo8ed into %each resorts( 4he most intensi2ely de2elo8ed areas on the ed Sea are Burghada and Sharm el Sheikh( Significant tourist de2elo8ment has also taken 8lace at Daha%> )u6ei%a and 4a%a on the 7ulf of AEa%a coast as 6ell as at Safag and Puseir on the ed Sea coast> and the northern sector of the 7ulf of SueA( 0t has %een re8orted that areas such as Burghada and Sharm el Sheikh ha2e %een de2elo8ed and e58loited %eyond their ecological and social carrying ca8acities and are already sho6ing signs of en2ironmental degradation( $2idence of reef degradation due to tourism and other acti2ities is clear e2en in areas such as the as Mohammad )ational Park in $gy8t( 0t is estimated that the ed Sea coast and the 7ulf of AEa%a 6ill attract o2er one million tourists 8er year during the ne5t fe6 years( Such ra8id tourism de2elo8ment may lead to a serious threat to %oth the marine en2ironment and the tourism industry itself> if not 8lanned and de2elo8ed on a sound en2ironmental %asis 6ith the effecti2e enforcement of en2ironmental regulations( Pre2ious studies ha2e found that the $gy8tian 8ri2ate sector is more successful than the 8u%lic sector at 8lanning and managing en2ironmental initiati2es> and that $gy8t<s tourism 8ricing 8olicy is a key influence on the le2el of en2ironmental degradation( 0n terms of la6s and regulations> $gy8t has a sufficient num%er of en2ironmental regulations and institutionsD %ut the challenge lies in their functioning and efficiency> and that the go2ernment<s en2ironmental initiati2es are largely sym%olic and designed to attract foreign aid( F0%rahim> 3**.G

+#6 The Policy and )egulatory 7rame'or1 Dimension

4he go2ernment has a se8arate Ministry of 4ourism in $gy8t as the egulatory =rame6ork( 4he 8olicies undertaken %y the ministry are %acked u8 %y the 8ur8ose of increasing the inflo6 of tourists on an international scale in $gy8t( 4here ha2e %een re2isions to the 8olicy in recent years kee8ing the aforementioned o%:ecti2e in mind( Some of the im8ortant 8olicies regarding tourism in $gy8t ha2e %een noted do6n %elo6( O Iith the aim of 8rotecting the market from the negati2e im8acts of the glo%al economic crisis> the Ministry of 4ourism agreed to e5em8t tourism trans8ortation com8anies from 8romotion fees 8aid to the go2ernment> as the industry runs around +3>*** %uses and 2ehicles> 6hich 8ay $7P,* K seat in large %uses and $7P+** K seat in smaller 2ans( O Also> hotels 6ould %e e5em8ted from 8aying contri%utions to the countryCs tourism 8romotion authority> %esides a ne6 fund 6as set u8 to su88ort the tourism industry during this crisis( =urthermore> ne6 start&u8 charter flight 8ro2iders 6ould %e su88orted through cutting fees for landing and takeoff at the $gy8tian air8orts %y ,*@( O 4he Ministry of 4ourism decided to 8ost8one raising the fees im8osed on floating hotels 6hich use the MinistryCs docking stations in Lu5or> as the Ministry 6as su88osed to increase these fees starting 3**.> 6ith the current fees ranging %et6een $7P9,*&,,*8er night(

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O 4ourism incenti2es include the sale of land at ?+ 8er sEuare meter in designated tourism Aones( O 4he go2ernment doesnCt follo6 a 8rice reduction strategy that already ado8ted %y other countries since 8rices in $gy8t 6ere already 2ery afforda%le and any e5tra reduction 6ould affect the Euality of ser2ices offered( O 4he go2ernment altered ad2ertising cam8aign to focus more on $gy8t as afforda%le holiday destination( FAle5Bank> 3*+*G

,#$ onclusion
,#" Problems 'ith the Tourism !ector
+& After effects of last year;s re2olution: At 8resent> the greatest 8ro%lem faced %y the tourism is %ouncing %ack from the im8act on $gy8tCs tourism sector due to un8recedented 8olitical

circumstances( 4ourism in $gy8t e58erienced a huge crisis> 6hich resulted from regional and glo%al de2elo8ments( 4he aftermath of the January 3, re2olution in 3*++ constituted the %iggest challenge> 6hich faced $gy8tCs tourism( $2en though the re2olution and 8olitical unrest due to 8o6er interchange has calmed do6n in the country> the im8act on 8eo8le;s 8erce8tion has not totally %een o2ercome( 4he <safety issue; has al6ays 8layed a 2ital role for tourists and these recent occurrences ha2e made $gy8t a lesser safer tourism destination in the minds of many tourists( 4he local and foreign mass media contri%uted outrageously to 8ro%lems o2er6helming $gy8tCs tourism %y e5aggerating the domestic situation> mass demonstrations and acts of 2iolence and attacks on 8u%lic and 8ri2ate 8ro8erties(
3& Lack of 9L- star hotels & most of the hotels are , stars> lea2ing a %ig segment of tourists from the socioeconomic 8ers8ecti2e neglected( 9& Beggars L hagglers & many tourists com8lain a%out ha2ing to deal 6ith %eggars in the tourist areas such as the 8yramids( 4his has caused some negati2e 8erce8tions and did cut on those 6illing to 2isit again in the future as 6ell as s8read negati2e 6ord of mouth( -& Lack of 8lanning from the go2ernment side & led for e5am8le to an o2ersu88ly of )ile cruises %et6een Lu5or and As6an causing most to o8erate at %elo6 %reake2en 8oint( +3 J P a g e

#& 4he streets & cro6ded> disorganiAed and no 8lace for crossing( Due to the lack of 8ro8er 8lanning> the congestion has %een on the increasing side> much to the dissatisfaction of the tourists( Se2eral others minor 8ro%lems also e5ist( Bo6e2er at 8resent> these are the issues that should %e gi2en the most 8riority( FgaAette> 3*+3G

,#+ )ecommendations
+( 4he negati2e 8erce8tion created on the minds of the international tourists due to recent e2ents such as the re2olution needs to %e eradicated( 4his reEuires e5tensi2e 8romotions on an international scale %y the 4ourism Authority to make these tourists a6are that $gy8t> at 8resent is a safe destination for tourism(

3( 4he Ministry of 4ourism should take measures to ensure the utmost safety of the tourists in their country( 4his reEuires more in2estment on la6 and enforcement on %ehalf of the go2ernment( 0ncreasing the safety measures for tourists 6ill lead to 8ositi2e 6ord of mouth from the tourists to the future ones(

9( As mentioned in the 8ro%lems %efore> $gy8t does not ha2e an a%undance of midrange hotels( Bence more in2estments should %e made in that sector( 4his 6ill increase the o2erall customer %ase for tourism in $gy8t(

-( O2er the 8ast decade> tourism in $gy8t has already e58anded as an im8ortant sector for the economy( 4he future 8lans for the %oom of this sector should %e %acked u8 %y sufficient infrastructural de2elo8ments( 4he rate of infrastructural in2estments has %een slo6 in the 8ast( 4o ensure sustaina%le tourism in the country> this has to %e taken care of(

,( Monuments such as 8yramids reEuire utmost sur2eillance and 8ro8er 8reser2ation( 4his is %ecause these monuments 6ith utmost historical im8ortance are one of the ma:or attractions for tourism in $gy8t( Bo6e2er> o2ere58osure has had detrimental effect on them( hence> the Ministry of 4ourism should 8ut more em8hasis on 8reser2ing them

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#( 0nitiati2es ha2e already %een taken to di2ersify tourism in $gy8t> as 8re2iously mentioned in the re8ort> e(g( as a %each destination( 4hese initiati2es should %e continued and carried out on a large scale( 4his is %ecause $gy8t has the resources reEuired for 2arious ty8es of tourism and 8ro8er utiliAation of such resources 6ill ensure further gro6th of this sector for the country(

Bibliograp y
Ale5Bank( F3*+*G( Egypt!s Tourism Industry: Sectoral Survey" Authority> $( 4( Fn(d(G( C0A( Fn(d(G( etrie2ed from htt8s:KK666(cia(go2Kli%raryK8u%licationsKthe&6orld& fact%ookKgeosKeg(html $uromonitor( F3*+3G( etrie2ed from htt8:KK666(euromonitor(comKegy8tKcountry&factfile

gaAette> 4( $( F3*+3> January *,G( Challenges to $gy8t 4ourism( 0%rahim> !( F3**.G( Tourism Development and the Environment on the Egyptian Red Sea " Ontario: 1ni2ersity of Iaterloo( )e6s> 4( D( F3*+*G( Meeting 0nfrastructural Challenges to Maintaing $gy8tCs 4ourism Status( 1)$P( F3**,G( Making Tourism More Sustaina#le: $ %uide for Policy Makers" 1nited )ations $n2ironment Program( Iiki8edia( Fn(d(G( Egypt( etrie2ed from htt8:KKen(6iki8edia(orgK6ikiK$gy8t !ohery> A( Fn(d(G( Tourism in Egypt and Its impact on &ational Economy"

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