As Russia invades Ukraine, conflict has already dealt blow to Egypt’s tourism sector

Egypt’s tourism sector has suffered a blow as a result of the conflict between Russia and Ukraine, a setback for the industry that was en route to recovery after the initial impact of the global pandemic.

The effect of the Russia-Ukraine crisis on one of Egypt’s most important sources of hard currency has been slight so far, though experts say if the war continues the repercussions could increase.

As Russia launched attacks on several cities in Ukraine on Thursday, the Ukrainian government halted all civilian flights in Ukrainian airspace, tourist commercial flights included.

Tourist bookings from both Russia and Ukraine plummeted 30 percent so far in February, as tensions escalated to their highest point since the Kremlin began to post troops on the border with Ukraine in December.

“While Ukraine’s importance to Egypt’s tourism sector has declined recently, Russians are still a major component among inbound tourists,” Elhamy al-Zayat, a former head of the Egyptian Tourism Federation and an agent of the Ukraine International Airlines in Egypt, told Mada Masr.

Ukrainians make up around 3 percent of tourists coming to Egypt, and contribute about 2.5 percent of the industry’s total revenues in spending, Zayat said.

Inbound tourists from Russia represent an even bigger proportion of incoming visitors and have been vital for the recovery of the tourism industry that suffered huge losses as commercial air traffic ground to a halt during the first year of the pandemic. Egypt’s tourism revenues slumped by 70 percent in 2020, reaching only US$4 billion in comparison to $13.1 billion in 2019.

In 2021, tourism revenues exceeded US$13 billion, marking a significant recovery to pre-pandemic levels, according to Deputy Tourism and Antiquities Minister Ghada Shalaby.

Sharm el-Sheikh and Hurghada received a boost from tourists from Russia in particular after Moscow finally gave security clearance in August for flights to return to the attractions on Egypt’s Red Sea coast. Flights from Russia had been suspended for six years in the wake of a 2015 militant attack on a St. Petersburg flight that killed all 227 people on board, the vast majority of whom were Russian nationals. According to Tourism Ministry data, the 3.2 million Russian visitors in 2015 accounted for 33 percent of the total inbound tourism in Egypt.

The resumption of flights led the Egyptian government to anticipate between 300,000 and 400,000 Russian tourists per month, a return to pre-2015 levels.

Zayat said that tourism from Europe, which makes the largest part of the industry’s revenues, has so far not been impacted, but added that if the war continues, tourism companies, as well as tourists, will have to reconsider their vacation plans, which could have a “significant” impact on Egypt.