Tourism Ministry ups charter flight incentives to USD 165 mn

The Tourism Ministry is allocating USD 165 mn to its charter flight incentive program in FY 2026/27 — a 6.4% increase from the current FY, Al Arabiya reports, citing unnamed sources. The bump is a direct response to rising jet fuel prices, with the ministry looking to encourage airlines to operate more flights to Egyptian tourist routes. The program covers most major resort gateways, including Red Sea airports, Sharm El Sheikh, Taba, Luxor, Aswan, Borg El Arab, and Alamein.

Why this matters: The charter flight incentive program delivered a USD 66.5 return on investment for every USD spent in 1Q 2026. This helped drive a 43.5% y-o-y surge in total tourist arrivals to 5.6 mn for the quarter, Tourism Minister Sherif Fathi said last month. The government is layering these subsidies with an exceptional three-month package of reduced ground handling and service fees at Hurghada and Sharm El Sheikh airports to boost summer flight capacities. Private capital is also moving in to capture demand, with local tourism giant Travco planning to launch a charter airline in 4Q.

Doubling down on the Beijing hedge

The Central Bank of Egypt and its Chinese counterpart renewed their currency swap agreement for another three years, expanding the ceiling to CNY 30 bn (c. EGP 230 bn) from CNY 18 bn, China’s Xinhua reports.

Why it matters: Every CNY-settled transaction with China is a USD that stays in the CBE’s reserves. The expanded swap offers short-term liquidity relief and a longer-term hedge, especially as Egypt absorbs the twin hit of collapsing Suez Canal revenues and volatile capital flows from the regional war. Foreign Minister Abdelatty had signaled interest in doubling the swap’s value earlier this year.