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Sunday, 31 January 2021

Tourism losses piling up

Egypt has foregone USD 14 bn in foreign currency revenue thanks to the pandemic wreaking havoc on tourism, Finance Minister Mohamed Maait said in an interview with MP Moustafa Bakry on Sada El Balad (watch, runtime: 3:18). Related sectors — including hospitality, aviation, and global trade — were also hard-hit, which meant lower FX receipts and a large number of businesses in financial distress and paying less taxes, Maait said. Egypt suffered a EGP 220 bn shortfall in tax revenue in FY2019-2020 in the wake of the pandemic.

Background: Only 3.6 mn tourists visited Egypt last year, down almost 75% from 13 mn in 2019. Average monthly receipts declined 85-92% to just USD 80-150 mn, down from USD 1 bn in 2019.

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