Egypt - Travel & Tourism: Government initiatives to revive growth (Strategy, Performance and Risk Analysis)
In terms of the volume of guests checking into hotels, Egypt recorded substantial growth during the review period (2012-2016). Luxury was the most popular hotel category and accounted for 58.2% of all check-ins registered in 2016. The number of rental car bookings posted a review-period CAGR of 1.4%, rising from 0.54 million in 2012 to 0.57 million in 2016.
In the passenger airlines segment, the number of seats available declined at a CAGR of -0.9%, falling from 42.3 million in 2012 to 40.7 million in 2016. This was due to recurrent terror attacks and a consequent decline in inbound tourism. However, the total number of seats sold rose at a review-period CAGR of 0.2%, from 30.5 million in 2012 to 34.7 million in 2016.
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Increase in demand to drive revenue growth
Revenue generated by passenger airlines declined at review-period CAGR of -10.9%, from US$5.6 billion in 2012 to US$3.5 billion in 2016. The decline is attributed to a decrease in demand for air travel following the suspension of flights from major European countries. Full-service airlines accounted for 56.7% of total passenger airline revenue in 2016 and will continue to lead the market over the forecast period (2017-2021).
Increase in the number of tourists to drive the size of car rental fleets
The number of cars available to rent in Egypt rose at a review-period CAGR of 1.7%, from 11,171 in 2012 to 11,968 in 2016. It will post a forecast-period CAGR of 1.1% to reach 12,523 in 2021. Egypt has a smaller fleet size than Saudi Arabia, the UAE and South Africa due to its poor road infrastructure, due to which the demand for cars is somewhat lacking.
Revenue per available room to increase over the forecast period
Total revenue per available room declined at a CAGR of -10.8%, from US$156.3 in 2012 to US$98.9 in 2016 due to a fall in the volume of tourists on the back of terror-related incidents. However, revenue will post a forecast-period CAGR of 1.8% to reach US$59.6 in 2021 as the market recovers. Revenue per available room was the highest for luxury hotels, which accounted for a 40.6% share of the total value in 2016, but recorded a review-period CAGR of -10.7%, falling from US$63.2 in 2012 to US$40.1 in 2016. It is expected to post a forecast-period CAGR of 2.3% to reach US$24.6 in 2021.
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