Egyptian Government in currency devaluation

Egypt’s tourism troubles need more than a currency devaluation, as the Egyptian pound is unlikely to shore up the country’s tourism industry until security perceptions improve, say analysts and travel agents.

The Egyptian Governments decision to devalue the pound against the dollar by 13% makes holidays in Egypt even cheaper for inbound tourists, but security concerns remain high for travellers.

“For the real impact to be felt from this end, we still await the lifting of travel restrictions that are put in place by the UK and Russia, as both consti­tuted roughly 45% to 50% of tourism revenues prior to the [October 31] plane crash," said Cairo-based Naeem Brokerage analyst Allen Sandeep.

In response to the currency devaluation industry insiders said security perceptions rather than affordability were the main cause of the low tourist numbers in the country.

“Egypt as a destination is seen as not secure, especially in Europe, which was the top [source] market," said Travco director Akram Adel.

“We do not expect the industry to bounce back and tourists to return until the security situation improves considerably and there is improved confidence among both travellers and operators about the safety of tourists, particularly in the Sinai Peninsula," said Rashid Aboobacker associate director TRI Consulting in Dubai.