LOGIC Consulting

June 20, 2023


Egypt through the Eyes of the World from Dreaming & Booking to Experiencing & Sharing!

Tourism presents a promising avenue for propelling Egypt's economic growth and enhancing its foreign exchange reserves, given that it generated a substantial revenue of USD 13 billion in 2021.

However, while the sector is gradually recuperating from the adverse impact of COVID-19, Egypt is lagging behind other neighboring destinations that are reaping substantial gains from tourism. For instance, Turkey's tourism earnings stood at USD 25 billion in 2021, which although lower than the 2019 figure of USD 34.5 billion, still surpasses Egypt's earnings. Egypt is currently at a critical juncture, where an effective strategy to attract international tourists could significantly influence the country's trajectory in the upcoming years and facilitate the recovery of the sector from the disruptions of past years. This is evident in the government's recent ambitious goals for the tourism industry, which entail tripling the annual tourism revenues to approximately $30 billion in the next three years, and welcoming 30 million visitors by 2028.

Navigating the Road to Revival: What’s Stifling Egypt’s Tourism Potential?

As with any nation seeking to forge a new path, Egypt faces multiple hurdles in its quest to boost its tourism industry. To this end, the government shall institute sweeping reforms to surmount these obstacles and achieve its growth objectives. However, the crucial first step is to identify the root cause of the shortfall in Egypt’s inbound tourism.

At its core, tourism is all about providing a captivating experience rather than a mere product, making the enhancement of the tourist experience the cornerstone of success. Hence, the challenges facing the tourism industry in Egypt can be broadly bucketed under two main themes: Tourist Acquisition and Tourist Retention.

Tourist Acquisition: pertains to all the aspects and endeavors that influence the thought process of a tourist when choosing their travel destination.

Tourist Retention: encompasses the experience that a tourist has while staying in the country, which might not necessarily impact their decision to prolong their visit but can significantly impact the likelihood of them revisiting the country or endorsing it to their acquaintances.

Tourist Acquisition – From Dreaming to Booking!

Destination Marketing:

To augment Egypt’s profile as a sought-after tourist destination and amplify the inflow of international tourists, the government must execute an extensive array of communication and promotional campaigns. Across the globe, 64% of people watch travel-related video content when contemplating travel plans, and 45% of travelers reserve their spot shortly after viewing travel-related videos. A sound investment can yield a lucrative return, as exemplified by “The Visit Denmark campaign,” which reported an ROl of $16 for every dollar invested. Nevertheless, Egypt faces several challenges on numerous fronts concerning destination marketing, including:

Disproportionate Emphasis on B2B Market:

Egypt places significant reliance on Tourism intermediaries (B2B), specifically tour operators and travel agencies, for marketing and disseminating tourism services. which implies that Egypt is largely dependent on mass tourism, with little attention given to the B2C segment.

Conventional Marketing Tactics:

Travelers want to be informed yet inspired. As a result, numerous countries are implementing innovative advertising strategies to promote their destinations. For instance:

A. New Zealand ranked first in a survey of vacation spots made famous by film and television, largely attributable to its prominent role in The Lord of the Rings trilogy.

B. Football clubs such as Arsenal and Paris Saint-Germain have signed multi-million-dollar sponsorship and tourism promotion deals with the Rwandan government. Such partnerships play a pivotal role in providing visibility opportunities that will showcase Rwanda and the “Visit Rwanda” campaign on backdrop banners and stadium installations.
By making country’s discovery easier and more engaging, Egypt could compete actively with other tourist destinations.

Inadequate Personalization and Targeting:

In today’s era where travelers look for personalized experiences, traditional marketing approaches fall short. To win over tourists, Egypt needs to tailor its marketing efforts to the interests and preferences of each target market. Geo-targeting can be employed to boost tourist arrivals and reach untapped markets. By highlighting the favorite destinations, activities, and products of each target market, Egypt can create a more compelling message and stand out in a crowded field.

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