Egypt to generate $10b in tourism

Egypt’s finance minister said on Tuesday that tourism was showing signs of recovery and the country’s foreign reserves of about $26 billion were adequate although it could tolerate a lower level if they fall. Finance Minister Hazem el-Beblawi said on Tuesday that the Egyptian government forecast revenues from tourism would total $10 billion in the financial year that started on July 1, compared with $11.6 billion in 2009/10. Reserves were $26.57 billion at the end of June, down $659 million on a month earlier but showing a much slower slide than earlier this year after an uprising that toppled Hosni Mubarak scared off tourists and investment, two pillars of the economy. Reserves were about $36 billion before the uprising. Beblawi said the level of reserves was “reasonably good” and covered about six months of imports. “I think that the actual level of the reserves is adequate and we hope to maintain this level, but I think the economy can stand even some reduction if there is necessity,” he said. He added that it was “not 100 per cent sure that we will (keep this level) because we are not in normal circumstances.” More than 12.8 million tourists visited Egypt in 2008, providing revenues of nearly $11 billion. The sector employs about 12 per cent of Egypt’s workforce.In 2000, there were about 5.5 million foreign tourist arrivals, with over 3.8 million from Europe, and receipts totaled more than $4.3 billion. In that year there were 113,611 rooms in hotels and 227,222 beds with a 73 per cent occupancy rate. In 2002, the US government estimated the average daily cost of staying in Cairo to be about $167, around the same as other major cities in Egypt.The Egyptian Tourist Authority, along with the Tourism Promotion Authority, is launching the “Fawanees Ramadan Festival 2011.” Egypt has always been a popular destination for Arab tourists and this year, the peak season coincides with Ramadan.Egypt aims to boost tourism during this time to counteract the recent slump caused by the events on and after the 25 of January.Arab channels have been advertising special Ramadan packages offered by certain Egyptian hotels to encourage travel especially from residents in the Gulf states.On tourism, the minister said the industry was showing signs of recovery, citing a discussion with the tourism minister. “He told me in a very systematic way the level of occupancy in Sharm el-Sheikh and other places on the Red Sea was systemically and constantly recovering. If this trend continues by the end of the year we will reach the normal level,” he said.   From / Gulf today