Crisis in the Middle East: Egypt fears repercussions on its economy

by time news

2023-10-25 18:12:44

ECONOMY – While violence rages between Israel and Hamas in Gaza, tourist activity in Egypt is bearing the brunt of the repercussions of the conflict. Reporting between Luxor and Hurghada, where prestigious archaeological sites and seaside resorts on the Red Sea fear harsh repercussions.

On Sunday, October 22, an Israeli tank accidentally hit an Egyptian position on the border, the Israeli army admitted. Cairo reported minor “injuries”.

At the same time, seventeen humanitarian aid trucks were authorized to cross the Egyptian Rafah terminal towards the Gaza Strip, the point on the border from which many goods usually arrive into Palestinian territory. A second convoy in two days since the start of the war between Israel and Hamas.

As for the movement of Palestinians to Egypt, mentioned by the Israelis, Egyptian President Abdel Fattah al-Sisi declared:“Forcing Palestinians to emigrate to Egypt is unacceptable.”

A situation which is not new for Egypt which, since the creation of Israel, has always suffered wars and crises.

Today, the entire Egyptian tourism sector, the engine of the country’s economy, is facing new challenges following the conflict between Israel and Hamas in Gaza.

Egypt is one of the nations that attract the most visitors in the world. If Covid had reduced these figures by 70%, Egypt is one of the countries which has experienced the greatest post-pandemic recovery.

11.7 million tourists in 2022

The country recorded 11.7 million arrivals last year and hoped to almost double this figure in 2023, but the fighting in recent weeks has upset forecasts. The Quai d’Orsay has warned French nationals currently present in the country to exercise the greatest vigilance and to stay absolutely away from any demonstration or gathering…

On the Egyptian side, we are trying to play down the drama. The authorities assure that the situation is under control and that tourists are safe in the seaside resorts, far from the clash zone. But the climate of insecurity risks deterring many visitors. As Israel prepares for a ground offensive, a police officer killed two Israeli tourists and their Egyptian guide in early October in Alexandria.

Hurghada, a flagship resort on the Red Sea, could be particularly affected. Nearly 40% of tourists who visit it are Israelis. However, the conflict has caused a sharp increase in intercommunity tensions in Egypt.

The nearby upscale seaside town of El Gouna, which had already postponed the dates of the sixth edition of its film festival, has just decided to postpone it. Which doesn’t help matters for Didier, one of the Belgian owners of the Three Corners hotel chain, including the emblematic Ocean View which overlooks the El Gouna marina. “It’s normal to postpone, for safety reasons, given the situation, but on this side of the Red Sea, we are less affected.”

A big drop in attendance

At the Sahara Park, a center of attraction in the desert, between excursions in 4/4, camel rides or quad bikes and dinner shows, the Bedouins who live off this influx of tourism do not hide their fear of losing their livelihood like Ahmed, 45 years old father of two children, who is already seeing a “sacred drop in attendance”.

Laila, tourist guide, wants to be a philosopher: “We are too far from the places of confrontation. But I don’t like this anxiety-provoking climate, it reminds me of the attack in Sharm el-Sheikh (a passenger plane shot down in 2005 caused 88 victims). I was working there at the time and accompanied a family to the airport who greeted me warmly before dying in mid-flight. I don’t want to live like this nightmare again.”

Cécile Revol, general manager in France of the Sunweb agency, one of the European leaders in online tour operators, wants to focus on this major region of tourism, between culture and seaside resorts. “It’s a flagship destination, we always follow the recommendations of the Quai d’Orsay and for the moment, there is no reason to worry.”

Last week, traveling there with her teams, she was reassured by the potential of this destination so popular with French tourists: “It’s still incredible, such a short flight time from Paris, to have the combo of history, culture and dream beaches.” With her tour operator, she wants to strengthen this destination“future” despite the vagaries of current events.

An anxious climate causes postponements and cancellations

In Luxor, where tourists flock to come and admire the remains of 4,600 years of history, convoys of buses follow one another, stopped at regular intervals by police checkpoints. A heavily monitored tourist corridor whose security system has been reinforced in recent days. Here, many European, Russian and American tourists continue to come to discover the sites of Carnac or the Valley of the Kings. “Much less than usual”however, notes young Ahmed, a souvenir seller.

Although we had no particular fears on site, ten days after the Hamas attacks in Israel, the situation remains very tense in the region. More and more tourists are wondering and wishing to postpone or cancel their trips not only to Israel, but also to Egypt and Jordan. At a time when Egypt is counting on tourism to revive its economy, this new outbreak of violence complicates the situation and it will take time before foreign tourists regain confidence, another hard blow for the Egyptian tourism industry.

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