Egypt’s Tourism Revenues Declined $1.3 Billion Since Downing of Russian Plane: Prime Minister

Egypt’s Tourism Revenues Declined $1.3 Billion Since Downing of Russian Plane: Prime Minister


Egypt’s tourism revenues have dropped by approximately USD 1.3 billion since the crash of the Russian Metrojet airliner in the Sinai Peninsula last year, Reuters quoted Prime Minister Sherif Ismail as saying in a television interview on Monday.

“After the plane crash, over the past three or four months, we lost around $1.2 billion or $1.3 billion in revenues,” said the Prime Minister.

On Wednesday last week, President Abdel Fattah al-Sisi for the first time said that the Russian plane was brought down by terrorists “attempting to damage” Egypt’s tourism industry as well as its relations with Moscow.

“Has terrorism ended? No, it has not, but it will if we unite. Whoever downed the Russian plane, what did he mean? He meant to hit tourism, and to hit relations with Russia,” al-Sisi said in the televised speech.

Following the plane crash, which killed all 224 passengers aboard, Russia halted all civilian flights to Egypt, saying that a bomb had been responsible for the downing.

Although the Egyptian investigation is not finalized, an EgyptAir mechanic, whose cousin has gone to Syria to join the so-called Islamic State, is suspected of having planted a bomb on the Russian airliner.

The tourism industry is one of the main sectors of income for the Egyptian economy and is a crucial foreign exchange earner for the country.

“Tourism is one of the major sectors, not just as a driver of growth and one of the biggest sources of current-account receipts but because it has a higher multiplier impact on other industries,” Finance Minister Hany Kadry Dimian recently said.

In 2015, Egypt’s tourism revenues fell by 15 percent and the number of incoming tourists declined by 6 percent, Egypt’s Ministry of Tourism proclaimed in January.

The drop is largely attributed to a series of security-related incidents, including the “accidental” killing of 12 Mexican tourists and their Egyptian guides in the Western Desert in September 2015, as well as the downing of a Russian passenger plane over Sinai in October of the same year.

To tackle these hurdles, Egypt’s Minister of Tourism Hisham Zaazou recently announced that the government will allocate USD 32 million (EGP 250 million) to improve security at tourist resorts across Egypt.

Last month, the Ministry of Tourism also announced that it has signed a cooperation protocol with the United Nations World Tourism Organization (UNWTO) in hopes of strengthening and developing Egypt’s tourism sector.

Roughly four million Egyptians work in the tourism sector, which accounts for 12.6 percent of the country’s total employment and about 12 percent of the economy.

Egypt’s Health Minister Referred to Doctors' Syndicate Disciplinary Board
Woman 'Decapitates' Four-Year-Old Girl, Carries Severed Head Along Streets of Moscow

Subscribe to our newsletter


More in News

Hepatitis C clinic in Menoufia does research on the causes and treatment of Type 4 Hepatitis C. Credit: Diocese of Egypt

Egypt Makes Progress in Curing Hepatitis C by Reducing Drug Price: WHO

Aswat MasriyaOctober 27, 2016
Photo: UIPM World

Egypt Lands 36 Medals at Modern Pentathlon Championships

Egyptian StreetsOctober 27, 2016
Egypt's President Sisi smiles as young volunteers take a "selfie" with him during the closing session of Egypt Economic Development Conference (EEDC) in Sharm el-Sheikh 15 March 2015 (Photo: Reuters)

Egypt Retreats 52 Spots in Global Youth Development Index

Egyptian StreetsOctober 26, 2016
egypt israel border

Israeli Teen Killed by Gunfire Along Egypt’s Border

Egyptian StreetsOctober 26, 2016
iskandarani alexandrani

Detained Egyptian Nominated for Reporters Without Borders Journalism Prize

Aya NaderOctober 26, 2016
REUTERS/Amr Abdallah Dalsh

Egypt’s Military Likely to Reduce its Role in Egyptian Economy Within 3 Years: PM Ismail

Egyptian StreetsOctober 25, 2016
Photo: Youm7

Egypt’s Interior Ministry Warns Against Schemes to ‘Incite Chaos’ Ahead of Planned Protests

Egyptian StreetsOctober 25, 2016

Egypt’s First National Youth Conference Launched

Egyptian StreetsOctober 25, 2016
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.