Tourism operators are urging the government to extend low-interest financing initiatives in response to the ongoing regional conflict, which has driven new bookings across the sector down by around 20% y-o-y, Jaz Hotel Group CEO Alaa Akel tells EnterpriseAM. The sector has formally requested that the state extend its tourism support initiative or introduce a new concessional lending program to help hotels expand capacity and absorb the shock, he added.

The drop in tourist footfall is most evident from tourists coming — or in this case not coming — from Arab and East Asian nations, which comes partly as the result of flight disruptions rather than just falling tourist appetite for Egypt, Egyptian Tourism Federation member Hossam Hazaa tells us. However, tourism numbers from Europe and the United States have remained relatively stable, he noted.

Margins are also being squeezed for tourism companies, who face not just the prospect of lower numbers of tourists, but also increased expenses. The industry is absorbing a roughly 10% increase in the price of services offered by tourism transport companies due to higher fuel costs in an attempt to remain competitively priced, Hazaa adds.

But despite everything, numbers are still strong, with Egypt maintaining occupancy rates of 70-80% since the start of the conflict, we were told. While Red Sea destinations have seen modest declines, demand for Cairo, Luxor, and Aswan has remained strong.

What’s next? A sizable number of foreign visitors have opted to postpone bookings by up to four months as they wait for a calmer regional picture to emerge, Hazaa tells us. As with almost every assessment of the implications of this war, how long the conflict lasts remains the key determining factor.

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