Tourism revenues still below 2019 comps, but El Enany raises 2021 target
Tourism revenues in 1Q2021 are down almost 60% compared to pre-covid 1Q2019, with Egypt losing out on some USD 600 mn in revenues per month during the quarter compared to 2019 figures, Tourism and Antiquities Minister Khaled El Enany told Al Arabiya (watch, runtime 2:32). This puts our 1Q2021 tourism revenues in the range of USD 1.1 bn, according to our calculations, compared to the USD 2.6 bn recorded over the same period in 2019. Revenues improved on a q-o-q basis compared to the USD 987 mn posted during 4Q2020.
El Enany earlier said that Egypt is targeting tourism revenues of USD 8 bn this year, an upward revision from the USD 6-7 bn target announced by Deputy Minister Ghada Shalaby last month. S&P Global Ratings forecast’s expect tourism revenues will continue to lag below pre-pandemic levels till 2023.
The minister reiterated his hope that tourism would recover to its pre-pandemic levels in the second half of 2022, provided the vaccination rollout continues at the expected pace. Egypt has currently only received enough vaccines to cover 2.5% of our population, though the government has announced its intention to complete the vaccination of all tourism workers in Red Sea resorts this month, in its effort to turn beach holiday resorts into “no-covid zones.”
A pipeline of tourism projects could give the sector a boost: The Tourism Development Authority is currently offering investors USD 15 bn in tourism projects, with plans to inaugurate new tourist destinations including El Galala and New Mansoura in the “coming months,” the minister noted.