TOURISM SECTOR Quick Facts SECTOR ASSESSMENT INNOVATIVE MARKETING SOCIOECONOMIC IMPORTANCE MARKET STRUCTURE Success Stories QUICK FACTS Egypt’s city of Luxor proudly hosts one third of the world’s antiquities. Egypt’s diverse tourism cluster is the largest in North Africa and has attracted globally renewed investors for well over a century. Egypt received some 9 million tourists during 2014. Egypt is targeting inflows of 14 million tourists annually in the near future. Egypt is emerging as the regional hub for health, religious and eco-tourism. Egypt tourism cluster is a key beneficiary of the multi-billion dollar planned investment in supporting infrastructure. Egypt offers a unique talent pool with high readiness to support expansions in tourism related investments. Egypt is aggressively targeting to increase the contribution of tourism to GDP beyond the current share of 3.2% SECTOR ASSESSMENT LARGEST TOURISM CLUSTER IN A UNIQUE REGIONAL DESTINATION Egypt’s tourism cluster is considered to be one of the most historically renewed, diverse and vibrant globally. In 2013, Egypt’s tourism cluster was ranked as the largest in North Africa. Europe is the primary tourist-exporting market for Egypt, accounting for 79% of tourists visiting the country, with Russian tourists accounting for the largest share of arrivals from a single country at 19.7%, followed by the United Kingdom and Germany at around 8.7%. NORTH AFRICA Beyond Egypt’s long and varied history, rich cultural heritage and unique geographic features, the country’s pristine Mediterranean and Red Sea coastal lines and all year-round sunshine, make it a popular destination for tourists throughout the year. Arab tourists from the Gulf region are also targeting Egypt as a key travel destination. Egypt’s large and affluent middle-class positions a growing number of Egyptians, who are vacationing in the country each year. European countries including Germany, France and Spain have lifted their travel advisories to Egypt. INNOVATIVE MARKETING AND NEW LEADING DESTINATIONS Key players on the Egyptian tourism scene are increasingly resorting to innovative marketing and promotion campaigns. In response, a positive vote of confidence has been made by the 9 million tourists who visited Egypt during 2014. Egypt’s tourism sector has been consistently targeting new Eastern European markets, with a good response from Eastern Europeans visiting Egypt. “Russia remains the largest source market for inbound arrivals in Egypt, with 1.7mn forecast to arrive from Russia in 2015. Furthermore, the Egyptian government cancelled visa costs for Russian tourists in order to encourage an increase in visitors from Russia, Western Europeans tourists such as Germany and UK is expected to increase with a forecast of 34% in inbound arrivals from the UK between 2015 and 2019, We further note increasing inbound travel from Poland, which will become a key source market over the next few years, reaching 551,330 in 2019 Polish Government has recently lifted a travel restriction to the South Senai region .Several other European countries - including, France and Spain, have also lifted their travel advisories, which should boost tourism numbers as we move into 2015” Egypt is also continuing the efforts to attract a larger number of Arab tourists, whereby in 2014, the Ministry of Tourism launched the successful marketing campaign 'Wahashtona' (We Miss You). The campaign focused on potential Arab tourists from the United Arab Emirates, Kuwait and Saudi Arabia. Marketing effort has been backed with the release of special offers and competitively priced holiday packages targeting tourists from the Gulf Cooperation Council member states.The marketing push has been highly successful, as reported by Arab News. SOCIOECONOMIC IMPORTANCE Tourism is the driving force of economic development. Translated into figures, the sector makes up about 40% of the total services exports, thus exceeding all revenue sector earned by the services. It also provides 19.3% of foreign exchange, and about 7% of GDP, which increases to 11.3% by adding the indirect contributions of the travel and tourism-related services such as restaurants and hotels (3.5%). Moreover, there are up to 70 other feeder industries catering to tourism, the country's most important employment-generating sector (employing 12.6% of Egypt's entire labor force). Several elements have combined to put tourism at the top of the list of the country's currency-earning industries. Egypt boasts a unique nature, which gives it a competitive advantage on the world tourist map. The Egyptian civilization is also one of oldest known to mankind. Egypt exerts every effort possible to diversify its modes of tourism and to introduce new types of tourism that cater to the taste of the various tourists. Not only is Egypt keen on protecting its current share of the international cake of tourism but it is also intent on tapping new markets. The country's favorable all-year-round climate, together with its diversified tourism types, has rendered it a major tourist destination. Its historical and cultural heritage added to its diverse natural and environmental elements and artistic and cultural richness have changed Egypt's image as a tourist destination. MARKET STRUCTURE Egypt’s economic structure is one of the most developed and diversified among the African and Middle East countries. It has a large industry sector, an essential primary sector and a fast evolving service sector. The service sector is the largest contributor to the Egyptian economy, with a contribution in excess of 49 percent. Also, it offers employment to almost 50 percent of the population. The major service sector areas are construction, tourism, canal trade and administrative jobs. SUCCESS STORIES Orascom Hotels & Development Orascom Development Holding AG (Orascom Development) is a leading developer of fully integrated towns that offer hotels, private villas and apartments, leisure facilities and supporting infrastructure. The group operates a total of 29 hotels with 6,654 rooms and controls a land bank of approximately 105.8 million m². Travco Group Egypt's leading travel and Tourism Empire - a success story thirty years in the making. Travco's monumental journey began three decades ago. Over the years, Travco has grown into a travel, tourism and hospitality empire offering a multitude of facilities and services across Egypt and the Middle East. The group's strong presence owes itself to a history of service excellence, a farreaching network of partners, forward-thinking vision and a global business outlook. Emeco Established in 1976, is a premiere travel agency and destination management company operating travel services, cruises, transportation and airlines divisions. Emeco Travel is general sales agent for leading airlines including American Airlines, Air Malta, Korean Air, Malev Hungarian Airlines, South African Airways and TAP Portugal. Emeco also offers a diversified transportation group offering solutions ranging from 5-passenger vehicles to 50-person buses. SUCCESS STORIES Golden Pyramids Plaza (City Stars) Established in 1991, Golden Pyramids Plaza SAE is an Egypt-based company engaged in the fields of entertainment and hospitality facilities management. The Company operates through managing City Stars Heliopolis Cairo entertainment complex, which is situated in Nasr City, and consists of three international hotels, namely InterContinental Cairo City stars, Holiday Inn Cairo City stars and Stay bridge Hotel; shopping and entertainment centers; office buildings; residential towers, and a medical center. Misr Travel Established in 1934 by the great Egyptian economist Talaat Harb, to be first and oldest travel company in Egypt and the Middle East.Throughout that period Misr Travel has been managed by a long line of influential economists and politicians. REMCO Group Incorporated in 1995, Remco for Tourism Villages Construction Company (RTVC) is the flagship of the Remco Group of Companies (REMCO). RTVC has been a publicly traded company on the Egyptian Stock Exchange since 1998 and its current paid-up capital exceeds LE 2.3 billion. Projects PROJECTS Project Name: Development of Dahab area Project Description: Construction and development of 4 sites which are: Wadi Hebeik Coastal (area 2.2 million square meters), Wadi Omran Coastal (962 thousand square meters), Wadi Sokhn Coastal (434 thousand square meters) and Wadi El Farsh Safari (420 thousand square meters). Purpose of the Project: Development of the area into a fully-integrated tourism project including hotels and tourism compounds, motels, a marina, shopping areas, Bedouin handcrafts areas, eco-lodge, a sports club and a spa. Partner: Rowad Dahab for Tourism Development, a subsidiary of Rowad Tourism Company (the main shareholder of Rowad Dahab) Launching and Offering Regulations: Increase of paid-in capital from EGP 70 million to EGP 300 million PROJECTS Project: Renovation and management of Cleopatra Hotel - Cairo Description: 3-stars hotel, current capacity 80 rooms. Project Objective: To renovate the hotel to qualify for 4-stars and management (Management contract). This includes full renovation of all rooms and suites and the public areas. Location: Tahrir Square, largest square in Cairo, downtown, facing the Egyptian museum and Ritz Carlton. Partner: EGOTH company, an affiliate of the Holding Co. for Tourism. The Offer: Contract with an investor to finance renovations and management of the hotel to upgrade it to 4- stars in accordance with Ministry of Tourism conditions, and complying with the engineering plan prepared by the holding company. PROJECTS Project: Renovation and management of Cosmopolitan Hotel - Cairo Description: 3-stars hotel, current capacity 83 rooms. Project Objective: To renovate the hotel to qualify for 4-stars and management (Management contract). This includes full renovation of all rooms and suites and the public areas to reach 60 rooms and suites. Contract duration is 20 years. Location: Off Kasr El Nile street next to the Egyptian Stock Exchange and the historical Central Bank building, as well as the National Bank of Egypt on Sherif street. Partner: EGOTH company, an affiliate of the Holding Co. for Tourism. The Offer: Contract with an investor to finance renovations and management of the hotel to upgrade it to 4- stars in accordance with Ministry of Tourism conditions, and complying with the engineering plan prepared by the holding company. PROJECTS Project: Tahrir Hotel - Cairo Description: 4-stars hotel with capacity of 295 rooms on an area of 3316 sq.m., a 2-levels underground garage with a capacity of 160 cars. Project Objective: To build a 4-stars hotel and an underground garage. Location: Tahrir Square, largest square in Cairo, downtown, facing the Egyptian museum and Ritz Carlton, next to Cleopatra Hotel. Partner: EGOTH company, an affiliate of the Holding Co. for Tourism. The Offer: Finance through a joint venture company with 49% stake to the investor, and 51% to the owner, and a right to utilize the land for 50 years renewable by agreement of both parties. PROJECTS Project: Renovation of Shepheard’s Hotel – Cairo (5-stars). Description: Renovation towards improving the hotel operations to comply with 5-stars category. Location: Corniche El Nile, Garden City next to Semiramis Intercontinental Hotel and Ministry of Industry and Trade. Partner: EGOTH company, an affiliate of the Holding Co. for Tourism. The Offer: Contract with an investor for renovation and management of the hotel. PROJECTS Project: Real estate touristic project in Magaweesh resort, renovation and capacity enhancement (4-stars). Description: Building 3600 chalets and villas and studios on the unutilized area facing the sea, with an area of 15 th. m2., in addition to renovating the existing hotel with a capacity of 400 rooms. Project Objective: Expanding the capacity of the resort (currently 441 rooms, suites and villas), and management of the resort. Location: Magaweesh touristic resort is located in Hurghada by the Red Sea, facing the island of Om Gaweesh, in the aera between the Red Sea shore and Hurghada-Saffaga road.. Partner: EGOTH company, an affiliate of the Holding Co. for Tourism. The Offer: Contract with an investor to finance the project and assume full management. PROJECTS Utilization of the Qouta land for establishing a 5-stars tourist hotel Sector: Tourism Governorate: Alexandria Project Type: Governorates' projects Area: 3.25 Feddan Organization: Governorate Subsector: Hotels and tourist villages and resorts. Location: the project is located at 1500 m2 far from the Manshiya Square particularly close to the Unknown Soldier Memorial. The project is bounded by the Cornish Road from both the north and north-west, and from the south by Champollion St. and from the west by the Army St. and from the East by Dr. Abdulhamid Sayed St. – Alexandria. - Area: the total area of the project is about 1500 m2 including the part currently allocated for Sindbad Amusement Park which make up 3.25 feddan approximately. PROJECTS Utilization of the Al-Saraya Casino for establishing a 5-stars tourist hotel Sector: Tourism Governorate: Alexandria Project Type: Governorates' projects Area: about 12774 m2 Organization: Governorate Subsector: Hotels and tourist villages and resorts. Location: The project is located in Stanly area at Alexandria bounded from the north, west and east by the Mediterranean Sea and from the south by the Army Road (Cornish Street) – Alexandria Governorate. PROJECTS Utilization of the land of recreational forest. Sector: Tourism Governorate: Alexandria Project Type: Governorates' projects Area: 29.5 feddan Organization: Governorate Subsector: Services Area Location: Entrance of the Agricultural highway - Alexandria Benefits: Availability of infrastructure utilities (water - electricity – roads – telephones – sewage – natural gas ) networks. The project is located on a main road. Easy access and transport to the project. PROJECTS Revival of the old Lighthouse of Alexandria (Pharos) Sector: Tourism Governorate: Alexandria Project Type: Governorates' projects Organization: Governorate Location: Lighthouse of Alexandria is located at a historic site in the heart of the Mediterranean port of Alexandria, yet the largest port of the second largest coastal city linking the Arab states with European countries. Benefits: Availability of infrastructure utilities (water - electricity – roads – telephones – sewage – natural gas ) networks. - Close to the marine ports and airports . - Easy access and transport to the project. PROJECTS Establishing an integrated aqua park recreational and entertainment city Sector: Tourism Governrate: Alexandria Project Type: Governorates' projects Area: 15000 m2 Organization: Governorate Location: Abu Qir beach – Al Montazah District - Alexandria Benefits: Availability of infrastructure utilities (water - electricity – roads – telephones – sewage)networks. The project is served by Alexandria/Abu Qqir railway in addition to the public transportation. - The project has a distinctive location on the Sea bank. PROJECTS Establishing a museum for submerged antiquities at the Eastern Port Sector: Tourism Governorate: Alexandria Project Type: Governorates' projects Area: 2000 m2 Organization: Governorate Subsector: Tourism Benefits: Availability of infrastructure utilities (water - electricity – roads – telephones – sewage – natural gas ) networks. - Close to the marine ports and airports . - Easy access and transport to the project. - The project has a distinctive location on the Sea bank. PROJECTS Tourist resort Sector: Tourism Governorate: Assyout Project Type: Governorates' projects Organization: Governorate Location: Arab Al-Awamer, Assiut. Benefits: Facilities available - It’s located nearby the Assiut Valley of the important historical value as well as being close to the Nature reserve including rare species of animals and plants.
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