What does the inauguration of GEM mean for tourism promotion? In the weeks since the opening of the GEM, Egypt has already seen a surge in visitor numbers. How will the GEM change the country’s tourism narrative and how will that impact the global marketing message? To find out, EnterpriseAM sat down for a one on one interview with Ahmed Youssef, CEO of the Egyptian Tourism Authority (ETA).
EnterpriseAM: How will the GEM change Egypt’s global marketing message, and is there a new tourism identity you want the world to associate with the country?
Ahmed Youssef: We currently promote Egypt as unmatched in diversity when it comes to tourism products. Egypt has been historically marketed as a cultural destination with museums and antiquity sites. In the 90s we started to establish tourism focused on leisure, or what we call sun and sea, in South Sinai and the Red Sea. Now we are developing much more impactful products like spiritual tourism, eco-tourism, and sports tourism focused on activities like scuba diving, snorkeling, mountaineering, etc. So, we position Egypt as having unmatched diversity. I would personally like to ensure that we are one of the top 10 global destinations. The GEM is definitely part of that. It doesn't just represent the antiquities part. With its technology, innovation, and immersive experiences, it also represents a new, modern and exciting product.
EnterpriseAM: Are there any specific campaigns that are going to be devoted to the GEM in the coming period?
Youssef: The GEM doesn’t really need promotion on its own, the whole world is talking about it. Since 2020, I’ve been asked when the GEM would open. I believe this was the biggest teaser campaign I ever worked on. We are, however, using the opening of the GEM to promote the city as a whole, so that Cairo is not just a two- or three-night destination but rather a seven-night stay. The government has been investing heavily in the infrastructure around the GEM, including roads, public transportation, and airport expansions. Now we have Sphinx Airport servicing the Grand Egyptian Museum, Saqqara, and Giza. If you visit the Pyramids, for example, you can see that we have upgraded services. So we are actually using the GEM to promote and uplift other products and destinations in Egypt.
EnterpriseAM: I know a lot has been done to upgrade the Pyramids Plateau, but are there still plans for further development in the area?
Youssef: We will never stop developing. We have a strategy to reach 30 mn tourists within the coming few years, and that requires three main things: double the hotel rooms, double the airline capacity, and an improvement in customer experience. Continuous development is a must.
EnterpriseAM: What role, if any, does the Egyptian Tourism Authority play in improving the overall tourist experience, including staff, security, and tour guide training?
Youssef: Our role is technically marketing and communication, but we definitely also play an important role when it comes to customer feedback. We provide that feedback to other entities like airports, ministries, and our colleagues on the antiquities side. This feedback is crucial for them to be able to upgrade their services. And that communication role goes both ways. Our role is to deliver the message to our target visitors to make sure they know what kinds of facilities we are providing and to ensure that visit is easier and more enjoyable.
EnterpriseAM: Do you expect the GEM to unlock a new demographic or a new target market for Egypt — a new type of visitor that might not have come here before?
Youssef: I think the GEM is definitely an added value for a well-established destination. We will certainly attract more lovers of culture, in addition to a new segment that may have initially come for other types of products but will now be encouraged to explore the new museum as well.
EnterpriseAM: What economic impact do you expect from this USD 1 bn project in its first year in terms of visitor numbers and tourism revenue?
Youssef: I wouldn’t say that the Grand Egyptian Museum as a standalone project will bring a dramatic shift in revenue and economic impact. Certainly, for now, it’s the hero and the focal point of discussion but it’s one element that’s tied to a holistic strategy that we are using to attract more tourists and have them stay longer. We have been developing many other areas of Greater Cairo, such as Cairo Citadel, Islamic Cairo and Saqqara. The Tahrir Museum still houses many magnificent pieces, so there is lots to see.
I think Sphinx Airport will also attract more people to come for shorter one-day trips to see the pyramids and the GEM, and that will also have a significant economic impact. Collectively, all of this will translate into higher numbers of visitors and more revenue.
EnterpriseAM: You’ve mentioned an integrated approach, but we often hear that the GEM is expected to attract around 5 mn new visitors a year, is that figure accurate?
Youssef: Well, it might be even more. In some areas like the pyramids, for example, we have been facing what we call over-tourism. For the GEM, we are expecting the same. If we extend the opening hours for the Grand Egyptian Museum, for example, or maybe have different layers of pricing for ticketing — we can better control that. Time will tell. However, I believe it will definitely be an amazing number.
EnterpriseAM: What about local tourism? Is the GEM, with its current ticket pricing, affordable for Egyptians?
Youssef: I sit on the GEM board, and whenever we increase prices, we bear in mind that in order for the museum to continue as an iconic institution, we need to have very good maintenance and ongoing upgrades, and these kinds of things require financing. That’s number one. Number two, for certain categories of people, we already provide up to 50% reduced ticket price, for example, for students, the elderly, and many other categories. We need to make sure that we are fair and maintain a balance.
EnterpriseAM: How is the Tourism Authority working with the private sector to expand hotel capacity around the GEM?
Youssef: Whenever we need to increase capacity in a certain area, we coordinate with the private sector, not just for hotel rooms but also for airports. For example, Hurghada Airport, Marsa Alam Airport, and very soon we are opening Bernice Airport in the Red Sea area. On the North Coast we have El Alamein and Marsa Matrouh airports. I believe a very good percentage of our budget goes to co-marketing activities with the private sector to make sure that we are covering products and new destinations.
EnterpriseAM: How many hotel rooms do we have in Giza now?
Youssef: I believe in Greater Cairo we have something around 35k rooms, which is not enough.
EnterpriseAM: So, what’s the target?
Youssef: The target for the whole of Egypt is to have, by 2031 or 2032 — depending on many factors — 450k rooms. Currently, we have almost 220k rooms, and we plan this year to increase by another 15k rooms.
EnterpriseAM: And for Greater Cairo specifically?
Youssef: For Greater Cairo, I believe the target is to double as well — rather than 35k, we should reach between 65k and 70k rooms. And until that happens, we opened licensing for holiday homes or short-term rentals. So, if people have places to rent, we just want to guarantee that they are offering good service and safe locations.
EnterpriseAM: What do you foresee as the biggest challenge ahead for the tourism sector?
Youssef: I would say that the demand is definitely there and that the biggest challenge will be airline/airport capacity. We’ve already addressed the accommodation issue with holiday homes and short-term rentals, but airline capacity will continue to be a challenge for a while.