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Zawya
02-04-2025
- Business
- Zawya
Egypt's Eid El-Fitr and Tourism: A Celebration Amid Economic Turbulence
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. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Al-Ahram Weekly
17-02-2025
- Business
- Al-Ahram Weekly
Egyptian Organi Group, Chinese CSCEC forge strategic partnership to enhance construction sector - Tech
Organi Group has announced a strategic partnership with the China State Construction Engineering Corporation (CSCEC), one of China's largest construction firms. This came during a press conference held on Monday. This collaboration aims to facilitate the transfer of global expertise and enhance strategic exchanges within the Egyptian market, contributing to the development of the local real estate sector in alignment with Egypt's Vision 2030. Organi Group, a key player in the construction sector with over 150,000 employees, has successfully executed major projects across Egypt, Saudi Arabia, and Libya. This partnership will create new job opportunities and further support community development. While Organi Group was established in 2010 as a parent group working in various fields, it has emerged as a key player in the market over the past few years, mainly in the business scene in Egypt. On the sidelines of the event, Essam Al Organi, CEO of Organi Group, noted that the group targets raising its investments in the construction sector by 150 percent to reach $5 billion. CSCEC is a Chinese state-owned construction company headquartered in Beijing. As of 2020, it was the largest construction company worldwide by revenue and the eighth-largest general contractor in overseas sales. CSCEC, known for its successful collaborations in Egypt, such as the Central Business District in the New Administrative Capital (NAC), aims to leverage this partnership to enhance innovation and efficiency in Egypt's construction landscape. Sherif El-Sherbiny, the Egyptian Minister of Housing, Utilities, and Urban Communities, and Zhao Liuqing, the commercial counsellor at the Chinese Embassy in Cairo, signed the partnership agreement. The press conference included prominent figures, including Essam Al Organi, CEO of Organi Group; Chang Weicai, general manager of CSCEC Egypt; and Amr Sheta, managing partner of Income, CSCEC's Egyptian partner. CSCEC ranks as a significant global player in the construction sector, holding the ninth position on the Fortune Global 500 list in 2022 and first among the Top 250 Global Contractors. This partnership aims to merge local expertise with CSCEC's global knowledge, focusing on technology transfer and the integration of international best practices to enhance the efficiency of Egypt's real estate sector. During the conference, Sheta stated that CSCEC is the largest company in the construction sector globally, with a total annual portfolio of $385 billion. He added that the corporation sees Egypt as the key market for it to grow in the North African market. According to Sheta, Income is one of the 12 biggest firms owned by the Chinese government. He highlighted that the company will contribute to Gaza's reconstruction efforts. Sheta emphasized the importance of this partnership in fostering cooperation between Egyptian and international firms, underscoring its potential to implement global best practices in major real estate projects. "Our strategic vision aims to create job opportunities and strengthen Egypt's position as an investment hub. Collaborating with CSCEC will significantly enhance the real estate sector, allowing us to develop innovative projects that contribute to Egypt's infrastructure,' Al Organi stated. He also noted that the group attempts to transform Egypt's construction and real estate sectors. For his part, CSCEC's Weicai noted that this collaboration is a commitment to bringing the latest technologies and global best practices to Egypt, driving innovation in the real estate sector. Short link:
