Egypt expects $ 6B in tourism income during 2021-2022

CAIRO- 5 May 2021: Egypt is expected to achieve $ 6 billion in tourism income in 2021-2022, Minister of Planning Hala El-Said stated, announcing the start of the gradual recovery of the tourism sector.

During her discussion of the sustainable development plan for the next fiscal year before the Senate’s Financial, Economic and Investment Affairs Committee, El-Said added that the government expects to achieve $ 6 billion in the Suez Canal during 2021-2022, in addition to increasing foreign investment rates to $ 7.4 billion in the year of the plan.

Regarding the main targets of the development plan 2021-2022, the Minister indicated that it is expected to reach a growth rate of 2.8 percent in the current fiscal year, and the target for next year is to achieve a growth rate of 5.4 percent, and it is also targeted to achieve an inflation rate of 5.6 percent in the current year and 6 percent in the next fiscal year.

Regarding unemployment rates, the minister explained that the current fiscal year is expected to end at an average of 7.5 percent, the unemployment rate is targeted for a gradual decline to reach 7.3 percent in the next fiscal year, with poverty rates reduced to 28.5 percent in the context of increasing the volume of investments in the 2021-2022 plan. “ There are expectations of a decrease in the poverty rate of 1: 1.5 points annually in the coming years.”

She emphasized that there is an increase in the volume of non-oil merchandise exports by about 10 percent to reach $19.5 billion within the framework of the start of the structural reforms program, while continuing to increase the remittances of Egyptians abroad to 7 percent to reach $30 billion in 2021-2022, as it reached $28 billion in current fiscal plan.

El-Said noted that the political and security developments in 2010-2011 led to a decrease in the growth rate to 1.8 percent to begin the phase of consolidating the foundations of the state in the period between 2015 to 2016-2017 and then the economic reform program in 2016 until the growth rate reached 5.6 percent, when the Corona pandemic cames, it led to a drop in the growth rate to 3.6 percent last year.

On economic growth rates and sectoral contributions, the minister explained that the target of the plan is consistent with the estimates of international institutions, as the International Monetary Fund expects a growth rate of 5.5 percent in 2021-2022 and 2.8 percent in the current fiscal year, while the World Bank expects a growth rate of 5.8 percent, in addition to Fitch's forecast of 6 percent, and The Economist's forecast of 4.1 percent in 2021-2022.