Egypt's proposed pound devaluation unlikely to boost tourism: Analysts

Published July 17th, 2016 - 08:00 GMT
According to Euromonitor, the biggest challenge facing Egypt is insecurity. (File photo)
According to Euromonitor, the biggest challenge facing Egypt is insecurity. (File photo)

For Egypt’s stock market, mere hints about potential currency devaluation and central bank stimuli were more than enough to push shares strongly in the green. For the country’s tourism sector, however, currency is the least of its worries.

While Tareq Amer, governor of Egypt’s Central Bank, recently said the Bank would focus on reviving the economy rather than stabilising the exchange rate, analysts said another round of currency devaluation would do little to revive tourism specifically.

Tourism has historically been one of the largest contributors to Egypt’s gross domestic product.

“Egypt is already considered a significantly cheaper tourism destination regionally. However, without a marked improvement in the confidence of tourists and tour operators in terms of safety and security on the ground, devaluation is unlikely to attract more tourists.

Safety will be more paramount to tourists than a reduction in travel costs,” said Rashid Aboobacker, associate director at TRI Consulting, a hospitality consultancy.


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