Challenges to Egyptian tourism development

Egyptian tourism development has faced numerous challenges and problems. These will be outlined next in order to provide a mechanism for avoiding similar problems in any future development. These challenges can be classified under two main groups: first, the weakness of Egyptian tourism products and, secondly, the pressures on, and threats to, Egyptian tourism products.

The main weaknesses in the tourism development sector in Egypt have resulted from the corruption and chaos in the administrative systems (discussed in section 4.1.3). The duplication and conflict as a result of fragmentations amongst governmental authorities has led to several problems. These include:

1. Low quality of infrastructure and poor connectivity between the destination areas. These need to be planned in advance and implemented to a high standard

Figure (4-7) Egyptian Tourism Development Priority Zones Source: The author based on El-Bamelgy (2002)

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in order to minimise the impact on the natural environment and meet the international requirements (Chemonics 2006a; El-Barmelgy 2002).

2. Poor management and monitoring of tourism development as a result of the conflicts in land ownership jurisdictions between governmental agencies (examples of this conflict will be discussed in Chapter Six). This has led to serious negative environmental impacts. Such effective management and clear responsibilities in monitoring between agencies are vital for the ongoing success of tourism development and sustainability of its resources (El- Barmelgy 2002).

3. A lack of diversification in the tourism products. It is estimated that 75% of tourists are attracted to the country by marine and coastal tourism and the rest by the historical attractions of the Nile Valley and the Pharaonic monuments (Hilmi et al. 2012). Although Egypt has a unique natural and cultural potential, the state does not have any long-term vision to expand its tourism products (EC-1).

4. The offering of low prices compared with other destinations in the Middle East was designed to attract more tourists; however, the tourists who have been attracted are seen as cheap and low quality. They also do not spend much money outside of the hotels. Therefore, they have little impact on the Egyptian economy more generally (Chemonics 2006a).

Furthermore, there are other external pressures that threaten the Egyptian tourism product. These include:

1. The influence of foreign organisations in controlling tourism development: The majority of the tourism products in Egypt, as in most developing counties, are owned or controlled by foreign organisations such as airlines and tourism agencies. These organisations have the authority to define which tourist packages can go to specific destinations as well as influence decision-making through the terms of contractual arrangement. (Helmy 1999). It is therefore very difficult to identify and organise tourist demand in the developing countries without recognising this external influence.

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2. There are a significant number of competitor countries trying to expand their markets and capture some of the Egyptian tourism market. Egypt needs to develop an appropriate plan for marketing its product to diversify its customers and thereby maintain, and hopefully, expand its market share (Rady & TDA 2002).

3. Changes in the origin of tourists represent a big challenge to tourism resources and products. Until 2006, Europe was the dominant source of tourists. Since then, the Russian market has become important, providing more than 20% of the total international tourists in 2010. This change has led to a decrease in the benefits of tourism and an increase in environmental degradation because the Russians are less sensitive about natural resources and have lower levels of expenditure (EC-2). Therefore, Egypt should seek to maximise the premium markets to increase visits from Western Europeans (Chemonics 2006a).

Furthermore, political insecurity both within the country and the region more generally, has, and is having a significant impact on tourism markets and potential new development. Security restrictions are one of the most important challenges to tourism development in Egypt. As a result of attacks on tourists, or at tourist destinations, security measures have been tightened. All tourist tours are now accompanied by police but then the tourists experiences can be hampered by intrusive police. Military permits required for safari tours have increased the complication of this problem. This has led a significant number of tourists cancelling. So, Egypt needs to promote its security system’s ability to protect tourists through developing a security service that can respond quickly without being intrusive (CISS & EDG 2012). Furthermore, the Middle East more generally is one of the most unstable areas in the whole world. This inevitably leads to fluctuations and instability for tourism development in Egypt. For example, in the last two decades there have been many troubles, both internal and external, that have led to a decline in the number of tourists, such as the Gulf War in 1991 and terrorism incidents in 1993 and 1997. Moreover, the unstable relations between Palestine and Israel add to the tension. More recently, an unstable internal political situation within Egypt since the 25th January

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Revolution in 2011 has also affected the Egyptian tourism market. Figure (4-8) demonstrates dramatically what the impact of internal and regional pressures on the Egyptian tourism industry have been (CAPMAS 2014; Rady & TDA 2002).

Figure (4-8) The fluctuation in tourism development as a result of internal and external troubles Source: The author based on data of MOT and El-Barmelgy (2002)

Consequently, despite its importance to the national economy, tourism in Egypt is an unstable industry, externally controlled, affected by international tourism operators, and very vulnerable, not only to internal political instability but also that of the entire region. Egypt therefore needs a new approach to try to mitigate these challenges and aim for more sustainable development. This might include:

- Supporting traditional tourism products: The value of existing tourism products should be maintained and the facilities of each tourism resource improved (JICA 2000).

- Developing new tourism products: The development of new tourism offerings by diversifying the nature and location of tourism activities would be beneficial. This could be in the form of ecotourism development (new approaches) in the desert areas, the North-West Coast of the Mediterranean (new location), etc. (Rady & TDA 2002; TDA et al. 2009).

- Integration of tourism products: The integration between different tourism products is seen as one of the most effective ways to diversify the tourism

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offer. Each product can supplement other products to produce a new one, by combining the attractiveness of each. For example, Nile cruise, historical archaeology of the Upper Nile Region and marine tourism in the Red Sea region could be better integrated to offer a mutual support and benefit to the three regions together (JICA 2000; TDA et al. 2009).

- Enhancing the planning approach: To produce effective tourism development through those three approaches outlined above there is a need for all stakeholders to be involved, with the state, in planning and implementing the plans because no single actor can solve such complex and dynamic issues, as mentioned above. A more collaborative planning approach could create an effective partnership between the state and other tourism stakeholders (Bonilla 2008; EC-2 and EC-8).

Now the research will turn to define the main potential for ecotourism development in Egypt.