Egypt Property Investment News

Rising visitor figures boost buy-to-let market in Egypt

The Egyptian state news agency ‘MENA’ announced this week that the country received a record number of visitors in 2006 to 2007. Statistics show 9.7 million tourists arrived in Egypt from July 2006 to June 2007 (the country’s financial year runs from July to June), which is a 13% increase on the previous year.

The record number of tourists spent $8.2 billion in the country in that period, which itself is a 14% increase on tourism-generated revenue in 2005 to 2006. Egypt’s Tourism Minister, Zoheir Garrana, was quoted as saying that the visitors spent a total of 92.3 million nights in the country overall; this is 8.5% up on the 85.1 million nights spent in 2005 to 2006.

These figures are of vital importance to a country whose economy is so heavily reliant on the tourism sector. Tourism, exports of oil and gas, transit fees for use of the Suez Canal and remittances sent home by Egyptians living and working overseas are Egypt’s most influential economic contributors.

The Egyptian government plans to boost annual visitor figures up to the 14 million mark by the year 2011, and to increase the number of hotel rooms from the current level of 184,000 to a total of 240,0000. The World Tourism Organisation’s ‘Tourism 2020 Vision’ forecasts that Egypt will receive 17 million annual international tourist arrivals by the year 2020, and if the Egyptian government implements its plans to boost tourism, it seems the country is on track to meet this prediction.

The apparent lack of quality tourist accommodation in a country with burgeoning tourist arrivals is good news for the buy-to-let real estate investor. Recent wide-reaching reforms in Egypt have simplified the property purchase process in the country. This has led to the country gaining a reputation as a prime investment location and an increase in the number of overseas property purchasers in Egypt.