{"id":609111,"date":"2023-10-31T00:00:00","date_gmt":"2023-10-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/31\/october-tourism-arrivals-on-track-to-close-up-10-despite-war-officials-aim-to-keep-airlines-and-operators-engaged-with-incentives-marketing-spend\/"},"modified":"2023-10-31T00:00:00","modified_gmt":"2023-10-31T00:00:00","slug":"october-tourism-arrivals-on-track-to-close-up-10-despite-war-officials-aim-to-keep-airlines-and-operators-engaged-with-incentives-marketing-spend","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/31\/october-tourism-arrivals-on-track-to-close-up-10-despite-war-officials-aim-to-keep-airlines-and-operators-engaged-with-incentives-marketing-spend\/","title":{"rendered":"October tourism arrivals on track to close up 10% despite war; officials aim to keep airlines and operators engaged with incentives + marketing spend"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>We lead the news well this morning with a deep look at the state of the tourism industry<\/strong>, now arguably our largest source of foreign currency and a sector that directly or indirectly supports roughly one out of every seven jobs in the country.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Officials<\/strong><strong> are working overtime to blunt the impact on the industry of Israel\u2019s war in Gaza. <\/strong>Just a few weeks ago, we weren\u2019t just talking about a record 2023 for Egypt\u2019s tourism industry \u2014 we were looking forward to an even more promising 2024. That\u2019s changed in recent days, as regional media outlets have raised questions about cancellation rates heading into the final months of the year amid reports that a growing number of tourists are delaying booking decisions. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Smart strategy paid off in 2023<\/strong>, where we\u2019ve seen tourism arrivals come in at 11 mn in the first nine months of the year, with a record 4.2 mn people visiting in the three months ending 30 September. The industry\u2019s boom prior to 7 October owes to a basket of factors, including:<\/p>\n<ul>\n<li><strong>Climbing the value chain:<\/strong> Faced with the loss of Ukrainian and Russian tourists after the outbreak of war last year, tourism officials made a smart play: Instead of trying to drive demand with incentives, they focused on reducing the risk for the value chain on the supply side; that encouraged operators to allocate resources to Egyptian tourism products. In practical terms, <strong>this meant additional incentives for aviation, co-marketing campaigns, and other programs<\/strong> directed at international wholesalers to encourage them to put the product in the hands of retailers in source countries.<\/li>\n<li><strong>Post-covid catch-up <\/strong>has seen plenty of well-heeled European, North American and Asian tourists eager to check an Egyptian holiday off their bucket lists.<\/li>\n<li><strong>Diversification of our inbound markets <\/strong>to make us more attractive to longer-term growth markets such as China, India, and beyond.<\/li>\n<li><strong>An industry-wide emphasis on \u201ccommitted sales\u201d <\/strong>where operators commit to blocks of seats, rooms, et cetera, from clients who pay deposits up front.<\/li>\n<\/ul>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Where are we now: We\u2019ll still see tourist arrivals in October close 10% above the same <\/strong><strong>period last year<\/strong>, a top official told us. That\u2019s about 15% short of the ministry\u2019s target for October, but an exceptional performance in light of the shift in mood on the Middle East since 7 October. The shortfall owes primarily to regional tours \u2014 packages that take visitors through Egypt, Jordan, and Israel \u2014 as well as a drying up of the Israeli market. There have been no significant cancellations \u201cin source markets that have bought \u2018Egypt-only\u2019 products,\u201d the official told us. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>\u201c<\/strong><strong>The Israeli market has left Sinai, certainly,\u201d<\/strong> said Hamed El Chiaty, who leads Travco, the nation\u2019s largest owner and operator of hotels. <strong>\u201cBut the turndown in other markets, including the UK, Belgium, and Scandinavia, appears now to have been temporary<\/strong> as people absorbed what was happening with the war. There was definitely a drop-off in the first days, but there\u2019s a growing understanding that Egypt is safe and that mainland and Red Sea destinations are very far from what\u2019s happening.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Travco has seen bookings picking up \u201cin the past three or four days,\u201d <\/strong>El Chaity added. \u201cIt\u2019s starting to improve, particularly bookings for Hurghada and Marsa Alam.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Where\u2019s the risk? <\/strong>It\u2019s all about how long Israel\u2019s war in Gaza lasts. Officials think they have visibility through the end of the year, the senior official told us, but \u201cthe concern now is for January and February,\u201d as tourists making bookings now may be reticent about paying reservation fees in light of what\u2019s happening in the region. The hope is that we\u2019re talking about \u201cdelayed\u201d bookings and not \u201clost\u201d bookings, a high-profile industry CEO told us.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Senior government officials are leading a crisis response plan that\u2019s going down well <\/strong><strong>with many top industry participants<\/strong> we spoke with. Among the highlights:<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- A clearinghouse for ideas and problem-solving. <\/strong>Tourism Minister Ahmed Issa has pulled together a high-powered committee that includes top industry players (think: El Chiaty and Naguib Sawiris), regulators, and industry associations. It gives industry participants a forum through which to stay on the same page. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- Blanket outreach to the 300 operators who make up our full value chain: <\/strong>\u201cOur priorities are to keep the airlines committed with all the seats, the wholesale tour operators committed with all the hotel rooms, and the retailers committed to sell the product on the streets of the source countries. So, when the crisis ends, last-minute bookings can find the product available for them to buy by January in February,\u201d the senior official told us. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#3- Fresh incentives are in the works<\/strong>, including an \u201cextension of the aviation incentive program for the next period, while lowering the qualifying load factor for flight eligibility for incentives,\u201d according to an Egyptian Tourism Authority (ETA) communication sent to top industry players globally.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#4- More marketing: <\/strong>The ETA is coughing up additional funding for joint marketing campaigns as well as for \u201cfamiliarization trips\u201d to Egypt for both international tour operators and airlines. More money for an \u201cextensive [targeted] online campaign\u201d is also in the works, the note from the ETA says.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#5- Happy tourists are the best ambassadors: <\/strong>The ETA is working with operators to capture video and other testimonials from satisfied tourists now on the ground in Egypt, making the case \u201cin a variety of languages\u201d that Egypt is a great, safe place to visit.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>THE INDUSTRY IS, SO FAR, TAKING IT IN STRIDE-<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Local leaders like Travco aren\u2019t pulling back from investment plans: <\/strong>El Chiaty says Travco is pushing ahead with plans to open eight new hotels nationwide. \u201cAll are under construction and we\u2019ll be completing properties in November and February, with the rest to come before July of next year.\u201d The properties are split across Marsa Alam, Cairo, Sharm El Sheikh and Hurghada, and <strong>Travco is also in the process of closing the acquisition of two new hotels in Cairo. <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Global hotel brands are also doubling down on Egypt:<\/strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c56b1ef7-a0a4-4361-b790-0b4a0b294ddc\" style=\"\" rel=\"noopener\">Accor<\/a> and <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d16559a4-09f7-46d7-a662-a86a9f90eb66\" style=\"\" rel=\"noopener\">Hilton<\/a> have both recently announced ambitions to scale their footprint in Egypt in the coming years.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Incentives, spending aim to drive demand while keeping airlines, wholesalers, and retail distributors committed<\/p>\n","protected":false},"author":1,"featured_media":609112,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7377],"tags":[72,955,166,238,797,4867],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-609111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tourism","tag-enterpriseam","tag-hospitality","tag-israel-palestine-conflict","tag-tourism","tag-tourism-and-antiquities-ministry","tag-travco","wpautop","entry"],"acf":{"mongo_id":"ce8042e2-3a79-4a84-9714-3073da3c349c","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/10\/1495.jpg","photo_position":"above","homepage_title":"Egyptian tourism officials see October arrivals closing up 10% despite war","full_issue_title":"Egyptian tourism officials see October arrivals closing up 10% despite war, aim to keep airlines and operators engaged with incentives + marketing spend","related_issue":[609106],"teaser":"Incentives, spending aim to drive demand while keeping airlines, wholesalers, and retail distributors committed","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/10\/.f415e5a7-aa54-4da9-afad-8123d9db167c.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>October tourism arrivals on track to close up 10% despite war; 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