Tourism makes small steps towards recovery in Egypt

Significance

Tourist arrivals to Egypt are creeping up towards about half of the pre-pandemic level. They have recently been boosted by the resumption of charter flights from Russia to Red Sea resorts in August and by the UK government’s decision to take Egypt off its list of restricted destinations.

Impacts

• A recovery in tourism would help Egypt rein in its current account deficit and reduce its reliance on foreign loans and portfolio inflows.
• Cairo faces a heavy debt repayment schedule next year at a time of reduced receipts.
• Amid weaker current account receipts, Egypt is unlikely to cut rates as a means of stimulating private investment.