Egypt tourism revenue shrinks 66 pct in Q1 2016

Egypt netted just $500 million in tourism revenue in the first quarter of 2016, down from $1.5 billion a year earlier, a tourism ministry adviser told Reuters, highlighting the country’s struggle to kickstart a key dollar-earning industry.

Egypt’s tourism industry, a cornerstone of the economy and critical source of hard currency, has been struggling to rebound after the political and economic upheaval triggered by the 2011 uprising that ended Hosni Mubarak’s 30-year rule.

Tourism revenue has also taken a heavy hit since a Russian plane crashed in the Sinai last October, killing all 224 people on board, which was claimed by Islamist militant group IS.

Egyptian authorities are yet to release the final report on the disaster,

More than 14.7 million tourists visited Egypt in 2010, dropping to 9.8 million in 2011.

In the first quarter of 2016 just 1.2 million tourists travelled to Egypt, down from 2.2 million a year earlier, said economic adviser to the ministry of tourism Adla Ragab.

Egypt aims to attract 12 million tourists by the end of 2017 through a plan that includes increasing the presence of national carrier EgyptAir abroad, tourism minister Yehia Rashed said in a recent interview with Reuters.

“Many European airlines have halted flights to Sharm El Sheikh. It’s too early to say what the long-term impact of the Russian plane crash will be,” said an analyst at hotel industry consultants STR.

source: Reuters