Exploring Egypt’s Tourism Potential: How Reform Can Boost GDP and Job Creation

Published on December 25, 2025

As of October 2023 Egypt is about to have a record year for international tourism arrivals, for a predicted 15.7 million international visitors to Egypt in 2023, Advance, in part of El Gouna, as a Platinum Sponsor, published on the vital contribution of tourism spending to the cash flow of the Egyptian economy. Entlaq Reports.

Tourism’s Economic Impact

Tourism currently contributes approximately 8.5% to Egypt’s GDP, generating annual foreign exchange earnings between $14 billion and $15 billion. The sector also plays a vital role in the country’s employment landscape, supporting around 2.5 million jobs both directly and indirectly. Despite these promising figures, the report points out that there is untapped potential in terms of value capture per visitor, indicating that productivity gains and long-term sustainability are still a challenge.

Key Findings on Tourism Performance

While Egypt’s tourism industry has proven its global appeal with strong post-pandemic recovery and a boost from the opening of the Grand Egyptian Museum, there are challenges in creating greater economic value. The report stresses that tourism growth in Egypt is currently concentrated on high volumes of visitors rather than high-value experiences. According to the analysis, structural reforms in governance, licensing processes, and the enabling of digital infrastructure are needed to unlock further growth.

Challenges in Licensing and Digital Transformation

A critical point raised by the report is the fragmentation in Egypt’s tourism system, particularly in the licensing and regulatory processes. In Egypt, tourism licensing timelines can range from six to twelve months, requiring up to 16 separate approvals. This process is only 10-30% digitized, making it cumbersome and inefficient for businesses to navigate. By contrast, peer markets like the UAE boast quicker licensing times, averaging one to two months, with 85-95% digital completion. This discrepancy puts Egyptian tourism businesses, especially startups and small enterprises, at a significant disadvantage.

The Path to Digital Reform

To address these challenges, the report outlines a comprehensive reform agenda that includes upgrading digital infrastructure, improving governance, supporting micro, small, and medium enterprises (MSMEs), and enhancing human capital in the sector. Digital transformation, particularly in tourism management and infrastructure, is seen as a key driver of future growth.

For instance, expanding broadband infrastructure could add 1.3% to 2.0% to Egypt’s GDP for every 10% increase in internet penetration. Similarly, MSME digitization programs could increase revenues by 20% to 26%. Implementing smart destination management systems would also improve efficiency at popular heritage sites, reducing congestion-related losses by 15-20%.

Tourism Growth Projections for 2030

The report offers an optimistic scenario based on full reform. With the implementation of the suggested reforms, Egypt’s tourism sector could contribute up to 15% to the national GDP by 2030, an increase from the current 8.5%. This could translate into an additional $1.8 trillion to $2.1 trillion in value added to the economy. Additionally, foreign exchange earnings could rise to $25 billion to $30 billion annually, while the total number of jobs in the sector could expand significantly—from 2.5 million to as many as 3.7 million direct jobs, with indirect employment nearing 6 million.

Growth in MSME Contributions and Investment

The report also predicts substantial growth in the fiscal revenues from MSMEs involved in the tourism sector. It suggests that these revenues could increase from the current EGP 5 billion to EGP 20 billion or more annually by 2030. Furthermore, the tourism sector’s innovation potential, particularly in the realm of TourismTech, is expected to drive significant investment. Venture capital inflows into the sector could expand four to five times, potentially reaching up to $1 billion.

Tourism Sector as a Driver of Inclusive Growth

In conclusion, the report emphasizes the need for Egypt to transition from a volume-driven tourism model to one focused on high-value, innovation-led growth. By addressing the systemic inefficiencies and implementing the necessary reforms, Egypt’s tourism sector could become a key engine of economic resilience, fostering inclusive growth that benefits both the national economy and local communities.

Guide for Travelers

1. Top Destinations: Egypt is home to some of the world’s most famous historical and cultural landmarks. Travelers should visit the Pyramids of Giza, the Sphinx, Luxor’s Valley of the Kings, and the Grand Egyptian Museum in Cairo.
2. Best Time to Visit: The ideal time to visit Egypt is between October and April when the weather is cooler. Avoid the summer months, especially in southern regions like Luxor and Aswan, as they can be extremely hot.
3. Cultural Etiquette: Visitors should dress modestly when visiting religious sites and be mindful of local customs. English is widely spoken in tourist areas, but learning a few phrases in Arabic can enhance the experience.
4. Safety and Travel Tips: Egypt is a popular destination for tourists, and many areas are well-secured. Always stay informed about local conditions through government websites and official tourism sources before traveling.

Conclusion

Authentic Egypt-innovations in tourism, tech, and digitization of tourism value chains- will help modernize the tourism sector and optimize its economic potential and value. Given the current trajectory, Egypt will become the tourism destination of choice, providing a better overall experience.