WTTC research reveals Travel & Tourism sector’s contribution to Egypt’s GDP

dropped by nearly $18 billion in 2020

COVID-19 sparks a 55% collapse in the sector’s contribution to GDP
844,000 jobs have been lost due to the collapse of Travel & Tourism
However, the return of international travel this year could see GDP contribution rise sharply
and jobs return

London, UK: The World Travel & Tourism Council’s annual Economic Impact Report (EIR)
today reveals that the dramatic collapse of Egypt’s Travel & Tourism sector wiped out a
staggering $17.6 billion from the nation’s economy last year.
The annual EIR from the World Travel & Tourism Council (WTTC), which represents the
global Travel & Tourism private sector, shows the sector’s impact on GDP dropped 55%.
Egypt’s Travel & Tourism sector’s contribution to the nation’s GDP fell from $32 billion
(8.8%) in 2019, to $14.4 billion (3.8%), just 12 months later, in 2020.

The year of damaging travel restrictions around the world, which brought much of
international travel to a grinding halt, resulted in the loss of 844,000 Travel & Tourism jobs
across the country.

However, WTTC believes the true picture could have been significantly worse, if not for the
government’s measures to keep the Travel & Tourism sector afloat and support its workers,
such as the cash subsidy scheme, which offered a lifeline to thousands of businesses and
workers.

These job losses were felt across the entire Travel & Tourism ecosystem in the country, with
SMEs, which make up eight out of 10 of all global businesses in the sector, particularly
affected.
Furthermore, as one of the world’s most diverse sectors, the impact on women, youth and
minorities was significant. The number of those employed in the Egyptian Travel & Tourism
sector fell from 2.4 million in 2019, to nearly 1.6 million in 2020 - a drop of more than a third
(35%).
The report also revealed domestic visitor spending declined by almost a third (32.3%), while
international spending fared much worse, due to more stringent travel restrictions, causing
a fall of 74.5%.
Virginia Messina, Senior Vice President WTTC said: “The loss of 844,000 Travel & Tourism
jobs in Egypt has had a significant socio-economic impact, leaving huge numbers of people,
who rely on a thriving sector, fearing for their future.
“Whilst there was no formal furlough scheme in place in Egypt, affected workers could
receive a monthly subsidy for a period of three months, which at least offered a lifeline. The
Egyptian Travel & Tourism sector also benefitted from a much needed three-billion-pound
government loan directed to tourism and hotel establishments.

“We know thousands of SMEs, which make up the bulk of the ailing Travel & Tourism sector,
are still fighting for their survival, putting at risk the capacity of the country to recover from
the crushing impact of COVID-19.

“WTTC believes that another year of terrible losses can be avoided if the government
supports the swift resumption of international travel, which will be vital to powering the
turnaround of the Egyptian economy.

“Egypt is an incredibly popular destination, and one which adopted our Safe Travels stamp
many months ago, showing just how important the return safe international travel is, not
only for businesses and jobs, but for the wider economy. Its borders have been open since
last July, and we are confident in its ability to recover.

“WTTC applauds the announcement by Tourism and Antiquities Minister, Khaled al-Enani, to
prioritise vaccination of Egyptian workers in the Travel & Tourism sector, an essential
contributor to Egypt's economy.”

WTTC says the key to unlocking safe international travel can be achieved through a clear
and science-based framework to reopen international travel. All non-vaccinated travellers
should face a comprehensive testing regime before departure, as well as enhanced health
and hygiene protocols, including mandatory mask wearing.

These measures would be the foundation to build the recovery of the many millions of jobs
lost due to the pandemic. It would also reduce the terrible social implications these losses
have had on communities dedicated to Travel & Tourism and upon ordinary people who
have been isolated by COVID-19 restrictions.

ends