Egypt's Eid El-Fitr and Tourism: A Celebration Amid Economic Turbulence

Zawya

02-04-2025

Beyond Eid El-Fitr cultural significance, this festive season greatly impacts the Egyptian economy, particularly tourism. The extended public holiday triggers a surge in travel to popular local destinations. However, economic challenges and the devaluation of the Egyptian pound are reshaping domestic travel in Egypt.
Yet, Egypt's tourism sector is adapting to these dynamics through targeted campaigns and the country's appeal to regional and international tourists. This evolving landscape underscores the interplay between economic conditions and tourism trends, highlighting both challenges and opportunities for Egypt during this festive season.
Impact on Domestic Tourism
The Eid El-Fitr holiday has traditionally been a peak season for domestic travel in Egypt, with families traveling for leisure and reunions. However, economic headwinds have noticeably impacted Egyptian families' engagement in domestic tourism in recent years.
Ibrahim Hamdy Sheta, holder of PhD in Applied Economics from Western Michigan University, USA and Assistant Professor of Economics at Faculty of Commerce, Mansoura University, and College of Business Administration, Taibah University in Saudi Arabia, explains: "The continuous devaluation of the Egyptian pound against the US dollar since November 2016 has resulted in a persistent inflation and high unemployment (stagflation), leading tohigher poverty rate and eroding the middle class.'
'Rising costs of essentials such as food, healthcare, education, transportation, housing, etc. have left little room for leisure spending. As a result, domestic tourism, especially to middle-class destinations like Ras El Bar, Damietta, Port Said, and Alexandria, has declined during national and religious holidays such as Eid El-Fitr, Eid El-Adha, and Sham El-Nessim,' Sheta notes.
This highlights a crucial link between macroeconomic factors and household spending patterns. Inflationary pressures and currency fluctuations have prioritized essential expenditures, leaving less disposable income for discretionary activities like domestic travel during Eid.
Sheta further points out that in previous years, remittances by Egyptians working abroad used to partially compensate for this decrease in spending on domestic tourism. However, now, the Central Bank of Egypt (CBE) is actually applying the managed floating exchange rate policy, which sets the dollar at around EGP 50, while the inflation rate continues to rise.
'Therefore, Egyptians working abroad have been struggling with inflation, just like those at home. Given all of these analytical facts and results, this has led to a significant decrease in spending on domestic tourism, not just during holidays, but throughout the year,' he says.
"As remittances lose their ability to cushion economic hardship, the tourism sector faces further strain, especially in key holiday seasons like Eid El-Fitr. Consequently, while some segments of the population may still partake in Eid travel, the overall volume and spending on domestic tourism during this time are likely to be considerably lower than in pre-economic turbulence eras,' Sheta adds.
In contrast to this analysis of economic constraints, Abdel Haris Abu Zaid, a tour operator, shares a different perspective with Arab Finance: "Domestic tourism during Eid in 2024 increased by 50%. Travel destinations depend on the season, so if Eid falls in winter, Egyptians prefer Luxor and Aswan, where Nile cruises are fully booked. Sharm El Sheikh, Hurghada, and Dahab are also popular."
The reported increase suggests a potential dichotomy within the domestic tourism market, where some segments are still able and willing to travel during Eid, particularly to popular destinations.
Impact on Arab/Regional Tourism
Egypt stands out as an attractive tourism destination for regional tourists, not only during Eid vacations but throughout the year. In the first half of 2024, Egypt welcomed a record-breaking 7.1 million visitors, as reported by the Ministry of Tourism and Antiquities.
"Regarding Arab tourism, most Arab tourists prefer nightlife, shopping malls, and similar activities over historical sites. To this demand, Egypt has expanded its modern attractions, building malls and developing new cities like New Alamein. These efforts have helped boost Arab tourism by 70% in 2024," Abu Zaid highlights.
Meanwhile, Marwa Omar, Assistant Professor of Economics at Helwan University, tells Arab Finance: 'Egypt has gained a competitive advantage over other MENA countries grappling with economic and political instability.'
'This relative stability makes Egypt a more attractive destination for regional travelers. Additionally, the currency devaluation has encouraged foreign and Arab investment in Egypt's tourism sector,' she clarifies.
To further attract regional tourists, the country is launching strong promotional campaigns. On March 1st, the Egyptian Ministry of Tourism and Antiquities, represented by the Egyptian Tourism Authority, launched a promotional campaign as a key tourist destination. The campaign targets both the Egyptian and Arab markets, including Saudi Arabia, the UAE, Kuwait, Jordan, Qatar, and Bahrain.
This month-and-a-half-long campaign promotes Egypt's tourism experiences, encouraging Arab travelers to visit Egypt during Ramadan and Eid El-Fitr. It also promotes domestic tourism, inviting Egyptians to enjoy the unique atmosphere of the holy month in their homeland.
Eid El-Fitr remains a cherished cultural and social celebration in Egypt, bringing families and communities together. However, economic challenges like inflation, currency devaluation, and rising costs of living have reshaped the way Egyptians experience this festive season.
Despite these hurdles, Egypt's tourism sector has shown resilience by leveraging its appeal to regional tourists and implementing targeted promotional campaigns to attract visitors.
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