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EliCC
The Way Forward and New Horizons
Refreshed Tourism Strategy 20132020
The Way Forward and New
Horizons
June 2013
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Executive Summary
National Sustainable Tourism Strategy
2013 – 2020
1 The Strategic Vision for Egyptian Tourism
The vision is seen as setting a direction for Egypt that will build on its inherent strengths and
potentials in a new customer focused way. The intrinsic hospitality of the Egyptian people will be
fused with positive lifestyle elements, including a fascinating blend of the heritage and cultures of
Europe, Arabia, Asia and Africa. The objective will be to enrich the visitor experience through a
multi sensory approach.
Egypt will be one of the world’s foremost diversified, differentiated and vibrant destinations for
leisure and special interest tourism where history, landscape and sunshine fuse with the cultures
of Europe, Arabia, Asia and Africa to create unique visitor experiences.
2 Mission of the strategy: Managing Tourism for Economic and Social Success
TECHNICAL SUPPORT AND COSPONSORSHIP
Two goals guide the refreshed strategy:
1. to develop the overall tourism economy; and
2. to distribute tourism income and benefits through employment creation and enterprise opportunity as well as employment in food production, transport, host services, retail sales, and individual crafts, thereby creating
social benefits penetrating all levels of Egyptian communities.
Even though tourism is an ideal economic stimulant for Egypt, the evidence for its farranging benefits will have to be advocated to government and policy makers. (Annex III gives detailed explanations of benefits.)
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
3 Egypt’s Tourism Assets
Egypt’s exceptionally strong assets rest on four principal components:
1. its iconic Pharaonic heritage,
4.3 Competitiveness as the chief criterion in building Egypt’s tourism market
As in any competition, success will go to those with strong visions and marketled strategies. Success
will be based on how assets can best be developed and sustained to reflect market requirements.
2. its marine and coastal assets,
3. its assured climate, and
4. its diversity of landscapes and special places.
Fact: Visitor numbers leaped from 5 million arrivals in 2002 to 14.7 million in 2010. Before the current political crisis, tourism accounted for 11.3% of Egypt’s gross domestic product. It provided 49% of Service Export Receipts and
generated USD 12.5 billion in revenues. Direct industry employment stood at 2.8
Egyptian business leaders in today’s global tourism
market must possess the will, the policies, the legal empowerment and the investments necessary to implement their plans and develop the capacity of their workers.
4.4 What will guide the growth in tourism
Proviso
Egypt can create one of the strongest winning positions in the global tourism market if the context of peace, stability and welcome is right.
million jobs, while indirect employment provided another 2.4 million jobs. Together these jobs constituted
15.4% of Egypt’s total employment. If the industry achieves 20 million visitors by 2020, at least 200,000 more jobs could be created for Egyptian youth (adapted from Egyptian Tourism Federation report).
Fact: Tourism/travel is now the largest service industry in the world, responsible for 12.5% of global employment.
4 Immediate and longterm goals:
The Tourism and Transport Council of the ENCC, a cross section of leading private sector organizations and companies, put forward the following goals:
● to restore growth to peak levels as quickly as possible,
● to strengthen the tourism platform, and
● to take the challenging actions necessary to achieve the target of 20 million visitors by 2020.
4.1 Challenges
“Most of the significant barriers to...
Refreshing Egypt’s tourism policies depends on adopting Best Practices, and on establishing strong competencies and capabilities in tourism product development, visitor experience, HR development, quality service delivery and marketing.
4.4.1 Objectives: the Six Imperative, or Ingredients
● Bring clarity to Egypt’s political situation. Make it clear that visitors are welcome. Send signals that Egypt intends to develop its tourism economy along globallyaccepted lines.
● Take steps immediately to become globally competitive. These steps relate to air access, ease of gaining tourist visas, visitor experience and value. [Global competitiveness is the only context that can bring success.]
● Implement the new multidestination strategy in line with the product and experience
diversification objectives (more on this later in this summary).
● Improve the effectiveness of tourism organization, the institutional framework and the legal and regulatory environment.
● Create the means and desire for both Public and Private Sectors to work in a resultdriven partnership to achieve agreedupon results and objectives across tourism, as a whole, but with an
Two factors are critical for the strategies’ success:
1. the quality and experience going into the planning stage;
2. the selection of mechanisms to support the change process.
4.2 Basis of the plan: Competitiveness
Developing Tourism for Economic and Social Success is a competitivenessbased model.
The most important component is not price or cost, but competitiveness. Competitiveness must inform all levels from regulatory to marketing; from attracting investment to training staff; and to delivering value in terms of air access
and achieving value in visitor experiences and its related services.
tourism’s economic and social success are largely selfimposed and, therefore, must be selfremoved...”
Matt McNulty
Tourism Management Services
“Competitiveness is about value rather than price; it is about the overall quality of the visitor experience... how [we succeed in] selling and promoting Egypt to global markets as well as distributing the benefits through social equity and social
inclusiveness.”
Amina Ghanem
ENCC Executive Director
immediate emphasis on marketing.
● Ensure that tourism benefits contribute to social equity and inclusiveness.
All six steps must be taken simultaneously, and progress simultaneously, as well. If any of the six imperatives outpace the others or falls behind, restoration of the balance must be immediate. Gaps in the progression of these six steps will
mean lost tourism dollars. Negative reporting about the failure of any one of these imperatives, therefore, must be stopped before it can happen. Such negative reporting is hard to remove from the global marketing system.
4.5 Models and Strategies for Growth
4.5.1 New and/or revised concepts for change and transformation
4.5.1.1 The overall strategy’s theme
“Managing Tourism for Economic and Social Success” is designed to identify links and provide
mechanisms that optimize the benefits of tourism. The theme focuses on preparing Egyptians in general
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
and youth in particular for a wide range of employment. (See Annex II, “Career and opportunity options created by tourism.”)
4.5.1.2 The Tourism Diamond methodology
The tourism “product,” or “value proposition,” is viewed as an amalgam of elements produced by different components of the tourism platform. The pillars of this platform international marketing and product development proceed in an
integrated way, not as two unrelated and incommunicative activities.
4.5.1.3 The Tourism Platform Concept
This concept emphasizes the input elements necessary to build tourism so that these inputs combine to produce a range of strong outputs in a diversity of themes. As well, the input elements should stimulate income distribution, thereby
strengthening local employment options and commercial/business opportunities.
4.5.1.4 The DestinationwithintheDestination Strategy
This strategy recommends the creation of five major internal destination areas, and is a key part of the refreshed strategy. The policy agreement of the Ministry of Civil Aviation is that with the exception of Cairo Airport, all the five
destinations areas within Egypt can be served directly by international air carriers. This will provide new opportunities for direct marketing and marketing innovation. This strategy will assist Egypt in offering differentiated products
and experiences to tourists. Each of the five destinations forms an economic cluster with its own incomeproducing opportunities. More detailed explanation of this plan can be found on pp. 3439 of the full report
4.5.1.5 Marketing
4.5.1.8 Human Resources (HR)
HR contributes to visitor experience, hence is a potential competitive advantage. An HR strategy can also enhance social impacts for Egypt’s communities.
At this time, skill availability is insufficient to meet Egypt’s tourism needs. In 2010, at tourism’s peak, all hospitality sectors experienced shortages: Reception, Front Office, Reservations, Housekeeping, Food and Beverage
Service, Food Handling, Food Production – with special advanced training required for Chefs.
New subsectors demand new competencies: e.g., Spa and Wellness Tourism, Leisure Centre Management, Event Organisation, Catering, and Animation. The current inability to develop these staffs results in uneven performances in
services that fall short of tourist expectations.
4.5.1.9 Innovation
Egypt’s heritage assets are great and powerful stories that need to be approached in new, innovative ways. For instance, the pyramids, the world’s most extraordinary prehistorical construction and the first wonder of the ancient world,
are one of the least satisfying visitor experiences.
Innovation of such sites is challenging. The protection and conservation of heritage, visitor management at sites, interpretation and delivery of the visitor experience must be integrated. Indeed, integration is one of the two most important
factors sought by the refreshed strategy; the first factor being quality. We suggest this challenge be taken up by an interministry technical group, which reports to the cabinet level Committee on Tourism.
4.5.1.10 Actions to support the Mision of Sustainable Growth and Effectiveness
Egypt must diversify the development of tourism markets to expand its appeal to a variety of target groups. These diversifications must be marketed globally. The strategic recommendations of the ENCC support the diversification
of Egypt’s portfolio of tourism products and experiences. The ENCC intends to propose yet new destinations appealing to special markets. These proposals will depend on evidencebased decisions deriving from research that will show
which parts of the tourism sector can be successfully developed through innovation and investment.
4.5.1.6 Development
Development depends on quality the priority must be the visitor experience. It also depends on innovation, the need to leverage Egypt’s great legacy of heritage in new ways, avoiding sameness in new development. Lastly, development
depends on optimizing, in a sustainable way, the extremely valuable coastal lands.
4.5.1.7 The Environment
There can be no conflict with environmental excellence. Protective environmental practices are increasingly influencing destination decisions – particularly among Europeans.
These strategic actions are set out under eight themes (top of page 16) with the addition of Immediate Tactical Actions to drive the return to growth:
Actions designed to boost 2013 and secure 2014 are as follows:
1. Become a major diversified, globallycompetitive,
multidestination country that is regionally hours; and of course local transport
differentiated. options and services.
2. Be backed by a global marketing effort and an air lift capacity/connectivity from major global hubs to the five internal destinations.
3. Appeal to today’s more sophisticated, educated and discerning tourist market by offering customised experiences. Tourism now derives from “lifestyle” choices. The dominant output has become “the visitor experience”.
The Visitor Experience
Accommodation capacity (number of hotel rooms) is linked to the carrying capacity of airlines serving Egypt. This ratio is, in turn, related to the numbers and scale of attractions at any one site; the participative activities after 18:00
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
4.5.2 The Diamond Framework for Tourism
The Diamond Framework illustrates the field of principal tourism activities and their relationships. The diagram moves from vision creation to implementation. Integration takes place throughout the framework from vision to annual
action plan. For instance, marketing, research and visitor feedback must inform development. In turn, these elements should be addressed in annual work plans, even when functions within the work plan are to be carried out by
separate institutions. By integrating information and planning, balance among elements of the framework is maintained.
4.6 Structuring Tourism for Success
Partnership is key. New, innovative approaches to tourism must include partnerships among government, ministries, institutions, state companies, and the private sector. Although government is organized vertically, solutions to modern
day problems involve lateral partnerships through various ministries and extragovernmental entities. In its drive to develop the economy, the Government of Egypt has created a high level Economic Committee of Cabinet. The Minister
for Tourism is a key member, underscoring its importance to the economy’s growth.
The Supreme Council for Tourism is a sound structural component for Egypt’s tourism industry. The council has the mandate to reach across government ministries, the desired strategy as mentioned above. Up to 11 ministries could be
involved in the council, but major players will likely be Civil Aviation, Heritage, Culture and the Arts, Interior, Transport, Education, Environment, and Health. These detailed, engaged relationships require joint ministerial technical
groups. One example is the symbiotic relationship between the Ministry of Tourism and the Ministry of Civil Aviation, where a technical group is already dealing with the arrival experience of visa, airports and arrival services. This
technical group should expand as necessary to include MoI (visa and police), MoT (taxis and coaches), and others as necessary.
Marketing
4.5.3 Summary of Models and Strategies
Vision and
Mission
The Tourism
Diamond
Annual Business
Plans
Framework for
Development
MoT should also establish technical groups with entities such as the:
● Ministries of Culture, Antiquities and the Arts in relation to visitor experiences at sites that require creative innovation to enhance the presentation of heritage and culture. The priority project must be the
Pyramids of Giza, which must become a firstclass visit experience.
● Ministries in the Environmental and Eco area, so that developments on the Red Sea and Mediterranean Coast, and in Siwa and the Western Desert, meet the highest environmental criteria and utilize Best Practice.
● Ministry of the Interior in relation to the visa issue and policing.
● Ministry of Transport in relation to internal transport issues – taxis, coaches, buses and
trains.
● Ministry of Health in relation to food handling and licensing of restaurants.
● Ministries and agencies involved in the education and training of tourism sector employees.
To meet this highlevel need for coordination and integration of services, the concept of forming
4.5.3.1 The level of success in tourism is driven primarily by six factors
1. Level of investment in main components, such as Access Transport, Product Development, Marketing and HR Development.
2. Human resources the critical contributor to the “visitor experience”.
3. Quality of implementation of strategy and plans – directly related to successful outcomes.
4. Competitiveness in the global market – necessary to boost marketing success.
5. Innovation in both marketing and development, to ensure differentiation to meet a more customized market demand.
6. Integrated planning and implementation key to securing competitive and comparative advantage.
a “Ministry of Tourism Board” should be explored. The Minister of Tourism would chair this board. Members would include the Secretary General of the Ministry of Tourism, the Chairman and CEO of the ETA and TDA, and the Chairman
and CEO of the ETF, together with three selected independent individuals with appropriate skills and experience. The board would deal with sector governance, policy development, high level planning, and target setting.
4.6.1 Reforming Institutional Frameworks
Two options exist for reforming the institutional framework for tourism.
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4.6.1.1 Option 1
The framework remain the same as recommended in the 2008 strategy. In that strategy ETA evaluates the tourism product; set ups plans for tourism promotion; and assembles attraction themes, domestic and international. The 2008
strategy also sought to rectify some weaknesses mentioned in an EU funded assessment in 2005.
The refreshed strategy believes that separating the marketing function (via ETA) from the Ministry of Tourism was correct. However, in order to pursue marketing goals in research and promotion, ETA should be streamlined. Instead of
running local tourism offices and developing functions (events), as well as promoting domestic tourism, ETA should focus on the international marketplace. A slimmer but more professional staff is envisioned.
4.6.1.2 Option 2
This is a more transformational change and depends on the perception that a stronger change needs to take place. Bodies like ETA will cease to do work and instead become managers of Service Delivery Contracts. These contracts would
be extended to specialists in areas ranging from Marketbased Representation to Web Management to Brand Development.
In Option 2, ETA would be governed by selected private sector representative s and pursue an integrated partnership with it. The private sector would take on major roles in marketing. The focus of development and marketing will become
the ‘destination,’ specifically to create differentiation so as to be more competitive globally. These destinations must create attributes that stand out as being authentic. In this scheme people will not just come to Egypt; they will come
specifically to certain cities and other destinations, such as coastal resorts or specific deserts. Gearing up cities, in particular, is crucial, since they will be key nodes in connecting power, finance, trade, talent and transport.
Detailed implementations of Option 1 and Option 2 are found on pp. 3031. A diagram for toplevel structure for the institutional framework is as follows:
Economic Committee of Cabinet
ETA
CABINET
Minister for
Tourism
Private Sector
Partnership
Supreme Committee for Tourism
TDA
Inter Ministerial
Committees
MoT Board
4.6.1.3 The roles of the Private Sector and Institutions
The last compartment in the framework is the private sector. Since the private sector is the engine for growth, government policies need to strengthen it into full independence, freed from unnecessary regulations. Within the private
sectors, leaders need to see one another as potential partners rather than competitors. Competitors come from outside Egypt. Also, as noted on p. 47, all remaining government owned tourism enterprises should be privatized. Where
privatization isn’t possible, operation/ management should be leased out.
The Egyptian Tourism Federation replicates a Best Practice body, formulating concerns and solutions from the private sector and communicating them to MoT or the government. The ETF should participate in, and facilitate, partnerships
in order to drive the economy.
Chambers of Commerce, ineffective with tourism in the past, can follow the chambers of certain jurisdictions that are beginning to design and set agendas for tourism as a distinctive sector.
A focus on the private sector leads to acknowledgement of the importance of communitybased tourism. Successful tourism countries provide organizational architecture and support to communities so that they vend the many
services that resorts or hotels require: local transport, equipment hire; sports participation; learning products; and guiding.
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Immediate partners include:
● The Ministry of Tourism.
● The Egyptian Tourism Authority.
● The Tourism Development Authority.
● The Egyptian Tourism Federation representing the Tourism Industry.
● The Air, Surface Carriers and Cruise companies.
● Tourism Service Providers.
Strategy provides the framework and templates. The partners execute the implementation. Communication must be clear as to what’s required of each partner. The solution to Egypt’s tourism challenges demands change, always a
challenge. Quality, speed, sustainability must come together to create competitiveness. Therefore, the integrated work of the partners is essential to success of the economic model, especially when it comes to the strategy’s
deepest challenge, to benefit the people of Egypt.
4.7 Marketing Tourism in Egypt
If any of the following elements is not in place and working well, development and growth will be erratic, leading to gaps that diminish competitiveness. Note that the diagram moves from makers to drivers to accelerators, providing
reminders of activities that must take place at every level:
Market Makers Market Drivers Market Accelerators
Partnership working Investment In depth Investment
Access Transport Lift and Connectivity
Product Innovation
Technology capability deployment Competitive advantage
with major source markets and hubs
Security* and freedom from crime
Annual business plans for each phase are necessary to assure quality of implementation, integration of action, and the strengths of teamwork and partnership.
Details about the future market place can be found on pp. 4445, and a short primer on opening up new markets is located on p.46.
4.8 What Do Tourists Need?
The Seven Essential Components:
1. Transport – Easy access by Air, Sea and Road, with streamlined visa regime on arrival. Direct air
access is the most important component.
2. Accommodation – a range of hotels and other accommodations suitable for international visitors, which meet established global criteria for registration and classification.
3. Food/Cuisine – not food as sustenance, but food as experience. Cuisine is a key factor in the visitor
experience.
4. Things to see and do during the day – attractions.
5. Things to see and do at night – from 18:00 hours onwards.
6. Tourism services – anything visitors might need or want on holiday.
7. Climate – predictable weather.
Analysis of each component of this model is necessary to detect deficiencies. Example: No. 5. Weakness in any one area limits international visitors. An analytic example regarding direct air access is detailed on pp. 4243.
4.9 Future Challenges and Potential Solutions in Egypt’s Tourism
● In order to attract a great deal of investment, from all sources, tourism development must be high quality. It must be imaginative enough to provide multiple sensory pleasures, while remaining environmentally outstanding.
–effectiveness of rule of law and
enforcement
Comprehensive deployment of research based target marketing
Distribution and Sales network
● Egypt will have to compete globally in areas of quality and value. Sustainable tourism will require luxury, the constant exceeding of customer expectations.
Entry Regime – Visa etc. Branding and Marketing Advanced Partnerships
Building emotional value into the offer proposition
Product Value Proposition
● Greater interest and functionality (than that found at home) must typify accommodations. The space limitations of the typical toplevel hotel room should spur the development of a luxury
Research for Evidence Based Decision
Making
Building capacity of private sector to sell directly
Competency in Technology Integration and functionality
appointed condominium market.
● Market trawling is an obsolete approach. More focus on particular markets will demand club
Capacity of sector HR Marketing support service Capability of sector HR
*includes Health Security
To implement this model successfully, there are three challenging phases:
1. Tactical management shapes up the current approach to align with the model.
2. Sustainable management identifies tactics that can be made sustainable by removing or
diminishing barriers to growth.
3. Strategic management implements the national tourism strategy to sustain economic growth and
bring benefits to communities.
rooms, towers, executive floors, and family floors.
● Hotels must offer new health and security services and niches in order to appeal to women in general, to single women in particular (e.g., reserved floors), assistance with children, special beds/pillows for guests who have difficulty
sleeping or have allergies, along with leisure/health areas, libraries, music rooms, cigar rooms, etc.
● The visitor experience demands new, multilevel offerings based on age, education, language, while satisfying multiple senses. Leaders must plan and raise skill levels of staff.
● Cruising already has multientry, multiplesensory experiences and is unrivalled in its diverse offerings and quality standards.
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● Green, sustainable buildings blended closely with nature are the future. Highly artificial environments are retro. Natural materials, internal gardens, creative use of water (sight/sound), variable lighting, design and color of furniture,
art, all play roles in an integrated environment.
● Hotel brands now make ‘style’ a central essence, which gives an opportunity for creativity and innovation. Again the blend of elements will be integral to successful design
4.10 Safety and Security
Safety and security issues can cancel a holiday decision, even when motivation is high. Political instability, flouting of law and order, civil disobedience, acts of terrorism, particular types of crimes such as sexual harassment, join with
traditional security concerns such as food security and medical security in case of illness or accident. These issues are further joined by ‘the hassle factor’ that tourists experience at major sites. .
These concerns need to be curtailed and managed. No benefits can accrue to local communities, when
these issues lower the rate of tourism.
Less visible but nonetheless unattractive is corruption, which breeds an overall negative perception. The vast majority of tourists originate from markets where personal freedom and tolerance are cherished.
When either of these values are lowered or absent, motivation for visiting is reduced or voided.
Road accidents, reckless driving, and poor road conditions give further reasons for tourists to ‘postpone’ Egyptian trips.
Infections arising from poor hygiene among food handlers and service workers must kept under control by improving the awareness and necessity of proper conditions and work habits.
4.10.1 Addressing Safety and Security Issues
MoT should address these threats, a task that demands highly skilled communications. Specialist consultants can supply advice and support.
Also, the voice of the population must begin to play a role. A tourism awareness program reaching into
schools and communities is necessary to explain the many benefits that all Egyptians reap from tourism.
MoT (or TDA) should take the lead in improving highway safety. Details on proposed initiatives can be found on p. 51.
Tour operators, drivers and accommodation staff must become aware of their responsibilities in assuring clientele safety and wellbeing.
4.11 Establishment of Tourism Social Fund
One way to build the relationship between local communities and tourism, thereby meeting some of the issues mentioned under Safety and Security, is to take LE50 (per head) from tourist earnings and apply this money directly into
disadvantaged communities.
Such a Tourism Social Fund could help with health, recreational, water/sanitation, educational services
or support persons to complete Hajj obligations – all these benefits identified as stemming from tourism.
4.12 Human Resources Development
Quantity – and especially quality and skills – of staff are major issues. See Annex II for a complete range of staffing, both traditional and new, and also areas such as marketing, cuisine, and service delivery, where advance skills are
necessary.
Training and skills development are critical parts of the solution. ETF knows that a qualified workforce
with the right aptitudes and right attitudes will be essential. ETF makes six points:
1. Egyptian stakeholders must constantly innovate and improve their products.
2. From the internal transportation system to the maintenance of archeological sites, quality of service needs to be improved. Deficient service is partly responsible for Egypt’s low rate of repeat guests.
3. The new demands of tourism (listed throughout this report) demand regional diversification and product diversification.
4. Egypt needs new skills in market segmentation, advertising, corporate/conference attraction, emarketing, and the Internet, among other areas.
5. The demand profile for the Egyptian workforce is shifting upward in order to deal with highend
business and leisure travelers. Rapid upgrade of skills is imperative.
6. More emphasis must be given to a participative local development approach.
A volume of the National Tourism Strategy and a study by ETF, both dealing with the importance of Human Resources, are cited on p. 53, and recommended for further study in order to better understand overall views and solutions to HR
needs in the current tourism context.
4.13 Small and Medium Enterprise (SME) Development
Annex VI sets out more detail on opportunity and business development tied to enhanced tourism, a significant area for SME growth. Measures are already in place to build a culture of enterprise, especially among youth. Education is key
to fostering notions such as a ‘knowledge economy,’ ‘a digital economy,’
‘an information economy,’ as well as the massive ‘services economy,’ in which tourism sits and in which most people now work.
The optimal approach is to create an ‘entrepreneurial economy,’ in which more youth will start engaging in enterprises to serve local and export markets. The government and selected agencies must become catalysts in making this
change happen. Emphasis must be put on educating/training thirdlevel youth in universities, institutes, and technical colleges. Early phase potentials are
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generally regarded as the most productive, as individuals are ambitious to carve out careers and are less riskaverse than later in life.
4.14 Energy Sustainability
Tourism depends heavily on energy, an expensive component. With subsidies likely to be removed
Addendum to the Executive Summary
1. Immediate actions to help 2013 and secure 2014
Action Responsibility Content Required Comment
in Egypt, energy practices must become more efficient. Conservation, the use of renewable energy like solar power, and an ultimate goal of energy self sufficiency, or clean energy alternatives, will be smart strategies. Hotels and
tourism facilities should examine their energy use and make plans to reduce its cost.
Execute all the areas set
out under the five themes in Annex 1 in a planned and task forced way
MoT As set out in the Document
in Annex 1
These actions are designed
to influence 2013 and secure
2014
The website www.hotelenergysolutions.ne
t is a UNWTO project providing relevant information. Also useful is www.carbontrust.com.
2. Creating the Structure and Institutional Framework to support growth
Action Responsibility Content Required Comment
Professional energy audits carried out by specialist companies can enhance efficiency, reduce cost and
help manage energy use. Some solutions include:
Minister of Tourism to be
member of Economic Sub Group of Cabinet
Prime Minister Recognition of role played by
tourism in the economy
Recognition of barrier issues and empowerment needs
Action Taken
Technical support needed to prepare solution focused papers on tourism as necessary
Key card operation in bedrooms Remove all remaining incandescent bulbs and replace with long life energy efficient CFL and LED bulbs
These last 3050 times longer and use up to 90% less energy for the same light
Use of special glass in new premises or glass coatings in existing premises to exclude infra red light which causes
heat and ultra violet light which causes fading of fabrics
The use of off peak energy at night to
fill roof top tanks
Formation of Tourism Group of Ministers whose responsibilities impact on growth tourism
Prime Minister and Minister for Tourism
Following Ministers
Tourism
Civil Aviation Interior Culture Antiquities
Committee would in effect be the Supreme Council for Tourism
Committee needs a range of technical support from ENCC
Use boilers with high AFEU ratings to heat water and fit with automatic sensors to manage hot water use load
Use condensing boilers where appropriate
Radio and environment controlled thermostats
Lagging of hot water pipes and storage
– heat loss is higher than 35% in un
The use of white blinds to reflect infra
red and ultra violet light
Use high efficiency absorption heat
pumps where appropriate
Minister for Tourism to chair joint meetings of CEO and Chair of ETB & TDA with ETF quarterly
Environment
Minister for Tourism To align marketing and development objectives and to coordinate priorities
Working group needs support and follow up
Use of light systems at night which are controlled by PIR’s or sensors which switch on as required
lagged systems
Establish internal Structures for Tourism Development
Minister for Tourism and
Governates
To provide for the development of the 5 destinations
Water use policies now include (see website www.waterwise.org):
Examine the effectiveness of
ETB offices overseas
Minister for Tourism To ensure effective market level representation
Consider costs and effectiveness against a
reps
3. Substituting showers or wet rooms for bathtubs
4. Insulating hot water pipes to reduce the 35% heat loss
system of market based
1. Inroom cards urging water conservation as an alternative
2. Dualflush toilets Structure the marketing and Minister for Tourism with To ensure that Egypt is Emphasis on branding,
communication divisions to meet the changed requirements of 21st Century
Chair and CEO of ETB
competitive in these key areas
emarketing, social media and communication
Review the structures
for investment to ensure that the search for FDI in Tourism is effective and competitive
Adopt the tourism diamond and tourism platform approach to developing tourism
MoT and MoI With TDA Paper needed on how tourism
investment is promoted and whether it is effective and competitive to achieve the growth ambitions
MoT with ETB and TDA Adopt as a methodology and discipline for growth
Support from ENCC may be
needed
Support from ENCC may be required
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3. Developing the product and visitor experience
5. Actions to ensure competitiveness and quality
Action Responsibility Content Required Comment Action Responsibility Content Required Comment
Comprehensive plan needed MoT and MoA This should be and must be This major attraction must Ensure that the registration MoT Comparison of present This is a matter of current
for the Pyramids of Giza a super world class visitor be organized effectively to and classification system for system with global Best and future competitiveness
experience. show that Egypt is serious hotels and all accommodation Practice
The world’s most iconic
structures are far below potential
Establish Technical group with MoCA
Focus on the five destination
areas
Initiate a system of visitor
profiling to understand the
It is far short of this
MoT and MoCA To enhance the visitor experience in aviation and airport arrival
MoT and TDA Plan for each TDA with clear priorities
Anchor project needed in each area
TDA to initiate with ETB Detailed profiles showing
visitor motivations,
about its heritage and visitor
experience development
Already established and meeting
The five areas must be differentiated and diversified
Technical support needed from ENCC
matches international Best
Practice
Ensure that the Visa regime matches marketing and growth ambitions
Prioritize infrastructures required by tourism.
Location of airports
Linkage by roads, water, waste, utilities and communication
Tourism Group of Ministers
MoT with MoI and MoCA
MoT and TDA
Relevant also to Economic sub group of cabinet in national plans
Particular difficulty with growth markets like China and India
National plan for new infrastructure
Priority for the 5 destination areas
Visa on arrival for optimum number of countries
Level of infrastructure readiness is a significant competitiveness factor
needs of markets and visitors
Carry out a product market matching exercise
Examine the potential of the AlexandriaPyramids railway to make Alexandria
a major port of call for cruise business
needs, requirements and expectations
TDA Determine how current products match with markets
MoT, MoTransport Examination of current state of line and costs
Discussions with cruise line comps.
Consider privatization
Technical support needed from ENCC
Could have a major impact on Alexandria and Mediterranean Coast
Measure competitiveness on Biannual basis and publicize to tourism industry and aviation
Adopt strict measures to protect and conserve environment, heritage etc.
Tourism group of Ministers Measurement of competitiveness across the range of factors including access, price, quality etc.
MoT, MoA, MoE Tourism, Antiquities
and Environment should work together on agreeing regulation
Support needed from ENCC
Protection of the environment and heritage are strategic principles
Major improvement required in leveraging heritage patrimony
MoT, MoA, MoC This area needs innovation
Select immediate pilot projects
Heritage is performing below its potential for Egypt
6. Actions to ensure sustainability and best practice in other areas
Action Responsibility Content Required Comment
Develop eco and green projects in Siwa and Western Desert
TDA Project should match best practice with innovation
Part of the diversification
programme
Introduce energy audits for hotels and tourism attractions
MoT and MoEnergy Develop providers to supply this service
Energy conservation is a cost positive measure
Assistance from ENCC may be needed
4. Marketing to achieve growth
Action Responsibility Content Required Comment
Require new hotels and tourism attractions to build in solar energy solutions for water heating, lighting and cooling
MoT and MoEnergy and
MoEnvironment
New regulation enshrined in law
Will help build Egypt’s reputation for low carbon approach
The key element for tourism marketing lies in how the sales and distribution network for Egypt is developed, supported and expanded
Make emarketing the major pillar of the marketing effort
Strengthen the communication function
Policy MoT
Support MoCA Operational management
ETB
Board and CEO of ETB MoT
Board and CEO of ETB
Needs a report on the current network and how it is supported and the identification of gaps
To ensure that markets and visitors understand that Egypt is welcoming, safe and hospitable
This is the most critical component in all tourism marketing – without it working effectively other marketing initiatives are diminished or wasted
Voice of Egypt has been too weak
Encourage innovation
in product development, presentation, visitor experience and tourism attractions
Innovation needed for Best
Practice
Give priority to identified high impact PR, such as market visits by media
Examine participation effectiveness at all international exhibitions
Board and CEO of ETB List of activities matched to impacts, so as to establish priorities
Critical assessment of preparation, participation and follow up
This activity must be planned and spread throughout the year
This form of promotion has tended to become high cost and low impact
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
7. Actions to ensure positive social impacts
Action Responsibility Content Required Comment
Creation of 5 destination areas will assist distribution of tourism economy and release more local energy
Organize the educational and training facilities to support local youth training for tourism
TDA to provide training schools in appropriate destination and cluster areas, and ensure operation to high standards and with local communities
MoT and Governorates Each Destination to produce its own destination strategy in conjunction with local business and community interests
MoT and MoEducation Significant task to be
undertaken
TDA This is being done.
TDA to ensure that local communities get priority
Should get underway by mid
2013
Required a cross Ministerial Committee to steer and integrate action
Schools could in time offer support to SME development
Hotels , restaurants and other appropriate tourism businesses to be encouraged to link with local producers
of food, goods and services in a visible way.
Awareness Programme of the values of tourism
MoT to lead
Destinations to make provision for
MoT to lead with assistance from other Ministries and Political Parties
Linkage programme needed
Test as pilot in selected businesses and destination areas
Need to work at National Level as well as community level and penetrate schools
Technical support may be necessary for some pilot test projects
Helps to link tourism to other local sectors
Creates understanding of
the importance of tourism to
Egypt
Enhance how local communities can benefit from tourism and local attractions
Destinations to lead Local crafts can be connected to hotels and tourist attractions
Rules can apply only permitting local or Egyptian craft goods at sites
Create support programmer for SME development
MoT to devise and destinations to lead
Tourism is a low barrier to entry area to high potential
Pilot projects in destinations if necessary
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Introduction to Egypt’s Current Context
Developing and Managing Tourism for Economic and Social Success
The overall approach under consideration by Egypt is that of “Developing and Managing Tourism for
Economic and Social Success.” There is confidence that this selected direction will best serve all of
Egypt’s key stakeholders in the context of responding to the national imperatives and challenges
facing the nation, its economy and social development.
This strategic direction requires Egypt to adopt an integrated twin track approach which can
identify “the way forward and new horizons,” as defined by the ENCC Tourism Council and Industry
consultative group:
The National Sustainable Strategy for Egypt was produced in 2008/9 under the auspices and patronage of the Ministry of Tourism
In late 2012 at the request of the Ministry of Tourism, the Egyptian National Competitiveness Council was requested to refresh and enhance the Strategy, so that it continued to function effectively in responding to current
conditions for the development and growth of the Tourism Economy of Egypt to 2020, and to ensure that the Tourism Sector plans and economic impacts also supported government policies to distribute income, increase
employment, and create positive social benefits for the communities and people of Egypt.
A workshop with wide representation from the tourism sector and from stakeholders endorsed the proposal of the Egypt National Competitiveness Council that the refreshed National Tourism Strategy‘s title and focus would be:
“Developing & Managing Tourism for Economic and Social Success”
Track 1 must deal with the return pathway to sustainable growth. It will, therefore, concentrate its efforts on growing the strength, reach, and effectiveness of Egypt’s global sales and distribution network, as well as focusing on
tactical actions, including competitiveness, communication, marketing, branding, quality attainment, capacity building, and capability development. These areas of tactical action will be designed to deal effectively with the
current issues raised by markets, air carriers, tour operators, customers, and media.
Track 2 must deal with the strategic elements that will not only help Egypt in its return to sustainable growth, but which will also be critical to build the future tourism economy envisaged by the national leadership and
industry sector. Its essential role is to establish the tourism economy as a pillar of Egypt’s overall economy and to ensure a significant improvement in how benefits are distributed and how social dividends are realized and
secured for the communities and people of Egypt.
The most important point is that both must proceed on a planned and integrated basis; both tracks are critical for Egypt’s current and future performance success.
This document—the “Refreshed Tourism Strategy”—responds to the needs of Track 2 and can be further developed in terms of the envisaged substrategies for the internal destinations, in terms of developing and diversifying the visitor
experience and in terms of enhancing the power, range, and effectiveness of Egypt’s global marketing effort.
A separate document with a focus on a high impact action plan is required to respond to Track 1 and to link current urgent and necessary actions into the Refreshed Tourism Strategy in a planned way so as to optimize impacts. Both tracks
will coalesce and combine at a point in the future which can only be determined, when Egypt’s tourism is returning to growth.
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Abbreviations and Acronyms
ENCC Egyptian National Competitiveness Council
ETA Egyptian Tourism Authority
ETAA Egyptian Travel Agents Association
ETF Egyptian Tourism Federation
EU European Union
FEMIP Facility for EuroMediterranean Investment and Partnership
FIT Free Independent Traveler
TABLE OF CONTENTS
Introduction to the Refreshed National Tourism Strategy for Egypt
Egypt’s Future Tourism
The Balanced Approach An Integrated Tourism Development Framework
The Diamond Framework for Tourism
The Strategic Vision for Egyptian Tourism
UNESCO United Nations Educational, Scientific and Cultural Organization
UNWTO United Nations World Tourism Organization
VFR Visiting Friends and Relatives
WB World Bank
WEF World Economic Forum
WHS World Heritage Site
WTTC World Travel and Tourism Council
GARBLT General Authority for Roads, Bridges and Land Transport
SWOT and PEST Analysis Egyptian Tourism
GDP Gross Domestic Product
GIS Geographic Information System Tourism A Strategic View of Egypt’s Potential
GoE Government of Egypt
HRD Human Resources Development
JICA Japan International Cooperation Agency Strategic Mission for Growth Tourism
MICE Meetings, Incentives, Conferences and Exhibitions
Tactical Tourism Mission
MoE Ministry of Environment
MoCA Ministry of Civil Aviation The Strategic Mission Objectives
MoI Ministry of Interior
MoT Ministry of Tourism
Economic Objectives
MoTR Ministry of Transport Socio Cultural Objectives
NGO NonGovernmental Organization
NSTSP National Sustainable Tourism Strategic Plan Developmental Objectives
NTA National Tourism Authority Marketing Objectives
PMC Project Management Committee
PPP Public Private Partnership Quality Objectives
RSSTI Red Sea Sustainable Tourism Initiative
Heritage Objectives
RTO Regional Tourism Organization
SCA Supreme Council for Antiquities Environmental Objectives
SME Small Medium Enterprise
Tourism An Economic Platform
SWOT Strengths, Weaknesses, Opportunities and Threats
TDA Tourism Development Authority Egypt’s Strategic Goals 2020
TNAP Tourism National Awareness Program
Egypt’s Strategic Tourism Goals 2020
TIO Tourist Information Office
TORs Terms of Reference Shares of World’s Gross Domestic Product
TWSDP Tourism Workforce Skills Development Project
Economic Growth and Population Growth Forecasts in selected
Tourismgenerating Countries
Projected Tourism Growth per Region Numbers Projected Tourism Growth Spend and Nights Projected Tourism Growth Employment
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
The Tourism Strategy for Egypt is based on the following selected Principles
Structuring Tourism for Success
Ministry of Tourism Board Concept
Reforming the Institutional Framework for Tourism ETA and TDA Refreshing the Talent Pool
The Egyptian Tourism Authority
The Tourism Development Authority
The Private Sector Community Based Tourism Partnership and Communication
A Destination within the Destination Strategy
Destination Strategy Destination Strategy Egypt Places of Special Interest
Managing Tourism for Economic and Social Success
The Model for Economic and Social Success
The Tourism Drivers Implementing the Selected Model What do Tourists Need
The Seven Essential Components of International Tourism
Example Access Integration Marketing
Opening New Markets
Product and Visitor Experience Development Privatization of Government Held Tourism Assets Future Development
Safety and Security
Safety and Security Strategy
Action recommended by the 2008 Strategy Establishment of a Tourism Social Fund Human Resource Development
HR Development for Employment in Tourism
SME Development
Sustainability Tourism and Energy Use and Conservation
Energy Audits
Use of Solar Energy and Renewable Energy
Water Use and Water Conservation
Key Strategic Actions to be taken to support growth and effectiveness
Creating Structure and Institutional Framework to support Growth in
Tourism
Developing the Product and Visitor Experience to support Growth Tourism
Marketing to achieve Growth Tourism
Human Resource Development to support Growth Tourism
Actions to ensure Competitiveness and Quality
Actions to ensure Sustainability and Best Practice in other areas
Actions to ensure Positive Social Impacts
Annexes:
Annex I: Immediate Priorities for Action
Annex II: Job Opportunities in Hospitality, Tourism, and Related services
Annex II: Advocacy for Tourism
Annex IV: Modern Tourism Operational Environment
Annex V: Tourism Competitiveness Framework and Measurement
Annex VI: SME and Enterprise Supports
Annex VII: Tourism An Economic Platform
Annex VIII: SWOT and PEST Analysis Egyptian Tourism
Conclusion
Contents Charts and Tables: Charts:
Chart No. 1: Strategy Formation and Planning for Tourism in Egypt
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Chart No. 2: The Tourism Diamond
Chart No. 3: Top Level Structure for the Institutional Framework
Chart No. 4: Destination Strategy Egypt
Chart No. 5: Tourism Platform Concept
Tables:
Table 1: Egypt’s Strategic Tourism Goals 2020
Table 2: Share of the World’s GDP Table 3: GDP & Population Projections Table 4: Projected Tourism Growth
Table 5: Projected Tourism Spend/Nights Table 6: Projected Tourism Employment Table 7: Destination Strategy
Table 8: Tourism Drivers
Table 9: Energy Audits
Table 10: Key Strategic Actions to be Taken
Table 11: Creating the Structure and Institutional Framework To Support
Tourism Growth
Table 12: Developing the Product and Visitor Experience to To Support
Tourism Growth
Table 13: Marketing to Achieve Tourism Growth
Table 14: Actions to ensure Competitiveness and Quality
Introduction to the Refreshed Tourism Strategy for Egypt
Strategy Formation and Planning for Tourism in Egypt
The comprehensive approach to strategic planning as recommended in this report is for a strategic process with four components:
1.The Guiding Element Vision, Mission, Goals, and Principles.
2.Strategic Formation Analysis, Scenarios, Strategic Choices, Best Practice, and Benchmarking.
3.Strategic Delivery The Leadership, Organization, Systems, Mechanisms, and Change to deliver strategic success.
4.Operational Dynamics of Strategic Delivery and Change.
Chart No. 1
Vision
Mission, Goals & Principles
Table 15: Actions to ensure Sustainability and Best Practice In other Areas
Table 16: Actions to ensure Positive Social Impacts Table 17: Annex 1 Immediate Priorities for Action Table 18: Annex 2 Job Opportunities
Table 19: Annex 6 Factors/Methods Table 20: Annex 7 SWOT Analysis Table 21: Annex 7 PEST Analysis
External
Analysis
Current State
Analysis
SWOT & PEST Scenario
Planning Best Practice
Strategies
Choices
Internal
Analysis
Transformational
Change
Tourism Diamond
Framework
Structure Organisation
& Delivery Systems
Partnerships
& Networks
Benchmarking
Resource Allocation
Annual
Plans
Implementation
Managing the
Dynamics of Change
Monitoring
& Control
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
As this is a “refreshed version” of the 2008/9 National Tourism Strategy, it relies on and uses the stillrelevant analysis and work already completed. It provides strategic guidance on all the critical essentials for Egypt to adopt in order
to attain its economic and social ambitions and to recover a sustainable growth trajectory as quickly as possible.
The refreshed strategy introduces a number of new or revised themes, methodologies, concepts, and best practices that are essential to Egypt achieving its tourism goals:
a. “Developing and Managing Tourism for Economic and Social Success”
The strategy’s theme focuses on tourism’s economic benefits that contribute to social success,topersonal skill development.tocommunity and regional development, and to beneficial linkages to other sectors.
b. The “Tourism Diamond” Methodology of Integrated Planning
This methodology exposes the relationships within the tourism sector framework and demonstrates how they interconnect. In order to achieve success of the overall strategy, all these factors must be integrated in its planning and
implementation.
c. The “Tourism Platform Concept”
This concept shows how the inputelements required to drive tourism combine to produce a strong platform for economic stimulus. This platform produces a range of outputs in a diversity of themes relating to tourism, as well as to
supporting sectors that depend only in part on tourism. This is shown in Annex V.
d. The “Destination within the Destination” Strategy
This strategy recommends the creation of five major destination areas. These areas are, in effect, economic clusters that include subdestinations. This strategy will help distribute tourism benefits within Egypt andoffer a
greater diversity of differentiated products and experiences to its markets and customers.
International airports will serve each destination. Normal border controls will provide new opportunities for direct marketing and marketing innovation.
e. Marketing
The value proposition of the refreshed strategy must be diversified on the development side in order to expand and elaborate its appeal to various target groups. Marketing must extend globally in order to capture the market.
Strategic proposals will require the adoption of new effective methodologies supported by research leading to evidencebased decision making; and also will require the effective leveraging of the competitive and comparative
advantages that the tourism sector can produce through innovation and investment.
f. Development
The key strategic messages for development focus on the criticality of quality, the dominance of the visitor experience, the need for innovation, the need to leverage the great legacy of heritage civilization in new ways, the advice to
avoid sameness in new development, and the need to optimize the extremely valuable coastal lands in a sustainable way.
g. The Environment
Tourism development must respect and not conflict with environmental excellence, which is a growing factor particularly among European tourists in motivating travel, in general, and choice of destination, in particular.
h. Human Resources (HR)
HR is a keystone issue contributing to competitive advantage and the visitor experience. HR can also bring about positive social impacts. Skill availability is recognized as a critical component, and new subsectors are being recognized
as developing new competencies in Spa and Wellness Tourism, Leisure Center Management, Event Organization, and Catering and Animation.
The strategy recognizes that the current capacitybuilding system for tourism is not yet delivering the necessary training in a planned way.
i. Innovation
While experiencing heritage and culture remains an important motivation for visitation, it is nowhere near its potential because of the lack of innovation that, if turned around, would lead to larger and deeper tourist engagement. The
strategy calls for this challenge to be taken up by an interMinistry technical group reporting to the cabinetlevel “Committee on Tourism.”
j. Actions to support Growth and Effectiveness
The series of actions to support growth are set out under eight themes. These can be the focus for further development through annualized action plans. It is also proposed that a tactical document be produced to respond to Track 1
the return to growth phase.
“It is impossible to predict the future, but that must not prevent us planning for the future and implementing actions that will help us secure the future we want. In tourism that future can be very bright we have the
legacy of our globally renowned Egyptian civilization, we have great gifts of coastline, landscape and climate, and we have our people and the tradition of the Arabic welcome for strangers. All of these
ingredients combine in what we can offer to world tourism and travel markets. It is our challenge in our time to make these unique ingredients compelling and competitive, so that they can build a strong platform
for high growth tourism”.
Ashraf Ibrahim
Director Tourism Council ENCC
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Egypt’s Tourism Future
The ambitious marketled strategy to reach 20 million visitors by 2020 is retained as a volume target. Much more important will be the efforts within that target of increasing length of stay and visitor expenditure, distributing
benefits widely, building local economies and engaging with communities, preserving the environment and enhancing the capacity of Egypt‘s vast human resources, and providing them with internationally recognised qualifications.
The ambition to attract 20 million international visitors is possible, but it requires change in that Egypt must become a major diversified multidestination country that is regionally differentiated and globally competitive, with the
networks and capabilities to be effective in its global marketing effort. It must also ensure the air lift capacity and connectivity from the major global markets and city hubs through to the five internal destinations, as this is a critical
element in delivering on the ambition.
It also requires Egypt to look afresh at the removal of barrier issues and the enhanced positive exploitation of assets that are currently operating below potential. These are identified throughout the strategy including:
● The need to innovate in the presentation and interpretation of its unique heritage, to transform the visit to the Pyramids of Giza and other sites into worldclass visitor experiences, as well as opening and revitalising closed museum
facilities;
● To ensure that restrictive policies in aviation do not curtail tourism growth; and
● The intensification of the development of its marine assets for tourism and leisure, in particular the Mediterranean coast and passenger ports, i.e., in bringing onstream the magnificent cruise terminal at Alexandria, in bringing into
operation the rail link from Alexandria to the Pyramids of Giza and Cairo, and in positioning Alexandria as a cruise hub for the Eastern Mediterranean.
Tourism is recognized globally as having a high potential for assured growth, but it is also viewed as being in transition. Leisure travel has become an embedded element of lifestyle firmly linked to growth in global disposable income
which gives it a new stability. The market for tourism is now more sophisticated, educated and discerning on a customized basis. The most attractive tourism products now derive from “lifestyle” choices and the dominant output has become
“the visitor experience.” The much greater global linking and networking of air routes and increase in frequency has boosted connectivity, offering an incredible diversity in consumer choice of destination. The Internet is becoming the main
route to market;asthat choice is available on a 24/7 basis and the quality and value of competing choices are more easily accessed and compared by customers.
The Balanced Approach An Integrated Tourism Development Framework
The tourism product or experience is not created by any one element within tourism it is created from combinations of elements assembled by tour operators, travel agents, packaging web sites, or customers themselves.
As the elements of tourism are naturally disaggregated, it is important that those who have the mandate and responsibility to plan for, steer, and lead the sector have an integrated approach. There are complex relationships within the
balanced development of all the factors that make up the critical ingredients in the tourism offer. Ingredients like hotel rooms, access, carrying capacity, airport locations, attractions, entertainment, and services (see page 42 for the
essentials for tourism) are all linked. If any of these outpace the others or fall behind, it spells out challenges that must be acted upon to restore the balance as quickly as possible. Gaps in the balance can result quickly in a significant
diminution of the visitor experience. In the Internet age, negative criticism is spread through blogging and social media very quickly. Once negative reporting takes root, it lingers in the system for a long time, so better by far to avoid it. The
solution to the challenge of the balanced approach is integrated planning and development and partnership, which are at the core of this strategy.
For example, the capacity of accommodation (number of hotel rooms) dedicated to the international market is linked to the carrying capacity of airlines serving Egypt, or serving any of the destinations within Egypt. There are relationships
between the accommodation capacity of cities or destinations and the numbers and scale of attractions, the choice of participative activities after 18.00 and, of course, local transport options and services. These do not always find a natural
balance, so, using six of the seven essentials for international tourism (see page 42), those who plan must identify gaps or weakness on one side, and how the visitor experience can be enriched on the other, so as to remain competitive.
In tourism, resting on your laurels or relying on legacy attractions is never an option the competitive mantra is one of “constant learning and improvement” in responding speedily and effectively to market and
customer requirements.
The Diamond Framework for Tourism
The “Diamond Framework” (below) sets out in simplified form the recommended field for the management of principal activities and their relationships that effectively guide the development of tourism from vision creation to
implementation. The critically important integration takes place throughout the framework from vision to annual action plan. Marketing, research, and visitor feedback must inform development, and both marketing and development
integration must be reflected in annual work plans, even where functions are carried out by separate institutions.
Doing so prevents a mismatch between the three major operational tracks of tourism development, capacity building, and marketing.
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Chart No. 2
Marketing
Vision and
Mission
The Tourism
Diamond
Framework for
Development
Tourism and travel are the largest sector by far of the global services economy. One in eight of the global working population depends on tourism and travel. Tourism growth has a dependency on disposable income and, therefore, has an
established relationship with both national and global economic success. However, the personal priority accorded to tourism and travel as an expenditure area has increased, as it has become an inherent and desirable element of modern
lifestyle, and one of the most assured economic sectors for growth. The customers for tourism will be there in the numbers and distribution necessary to realize Egypt’s ambitions, but Egypt has to ensure that the conditions, capabilities, and
investment to ensure success are created and guided directionally by this strategy and in detail by the
annualized and integrated business plans that should derive from it.
Annual Business
Plans
SWOT and PEST Analysis Egyptian Tourism
SWOT and PEST analysis are included in Annex VIII of this report. They are useful assessment tools in identifying specific elements for strategic consideration or implementation action. In the case of Egypt the core issue is
how the massive national potentials and strengths for tourism can be realizedandthen identifying appropriate priorities for action.
The market for growth tourism is present, but all the capabilities to realize it are not. Egypt has a high recall factor and distinctiveness, which provides the basis for it being a “must visit” and “repeat visit” destination for a huge
multisegment market. However, the realization of that market depends on thecapabilities discussed and guided in this strategy being perfected, in addition to the management of dynamics and media, which impact current motivation
and destination choice. The positive management of these dynamics remains the greatest challenge for all countries seeking sustainable growth in the tourism economy.
Tourism A Strategic View of Egypt’s Potential
Egypt has an extraordinary array of assets and potentials for tourism. It holds the keys to some of the most iconic and powerful attractions in global tourism the world’s most unique and distinctive historic civilization, iconic heritage
sites, unrivalled museum collections, the major marine and leisure potentials of the Mediterranean and Red Seas, the great metropolis of Cairo, the legendary river Nile, and a diversity of landscape all set within a climatic context that is
generally supportive of tourism.
Protectionism policies in the modern economy tend also to tolerate and “lock in” inefficiencies in operations, staffing, and marketing, leading quickly to an undermining of competitiveness in a critical area for national success. Tourism
and travel can only succeed where they retain full global competitiveness.
In the globalized and networked world of tourism and travel the challenges of strategy must be comprehensive and integrated. These challenges affect all aspects and elements across the range, with a particular focus on ten areas, each
of which is critical to success, and all of which must work together in an integrated way:
● Image, which is shaped primarily by government, politics, security, and welcome;
● Brand, which is shaped by the industry;
● Capacity of human resources at all levels, which results from the quality and comprehensiveness
of the educational and training systems, so that awards and qualifications are globally recognized;
● Organizing for success in terms of the institutional framework and publicprivate sector partnership;
● Marketing, which requires global reach and networks and a full understanding of target markets through research and cuttingedge capability in all media;
● Air access frequency and capacity from target markets, as well as the capability to distribute tourism to destinations throughout Egypt;
● Investment and product development, which protects the environment, respects heritage distinctiveness and communities,and promotes innovation in a customercentric way,thereby attracting local and international funds;
● Quality and good design in everything, as well as sustainability with environmental excellence and community engagement;
● The visitor experience, which is now the dominant issue for sustainable success; and
● The legal framework and laws, which govern tourism, transport, access, licensing, investment, and enterprise, which must be modernized and made globally competitive.
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Previous experience up to the peak year of 2010 has given an appreciation of, and insight into, the extent of the potentials of the tourism economy for Egypt and its people. That potential is very much there to be realized, but the pathway to
success has to be a different one that optimizes the delivery of social, as well as economic benefits and greater community engagement. These issues are dealt with, and guidance provided, throughout this strategic document.
“Tourism is a great Egyptian success story. Visitor numbers leaped from just over 5 million tourist arrivals in 2002 to 14.7 million guests in 2010. Tourism accounts for about 11.3% of Egypt’s gross domestic product,
providing 49% of Service Export Receipts and generating around USD 12.5 billion in revenues. Direct industry employment is estimated to be 2.8 million jobs, while indirect employment is 2.4 million jobs representing
15.4% of total employment in Egypt. If the industry achieves its growth potential by 2020, at least 200,000 jobs could be created for Egyptian youth”.
Egyptian Tourism Federation
Proposal for Egypt Tourism Cluster Human Resources Development & Training 2012
The level of success in tourism is driven primarily by six factors:
● The level of investment attracted and secured into main component elements is the most determining factor. This includes investment in Access Transport, Product Development, Innovation, Marketing, and HR Development.
● Building the capacity and capability of the HR element is the most empowering factor and a main contributor to the success of the critical “visitor experience.”
● The quality of implementation of strategy and actions plans is always a critical contributor to the level of success achieved.
● Competitiveness in the global context is critical deployed effectively it produces a range of advantages that boost and accelerate marketing success.
● Innovation in both marketing and development contributes to the creation of comparative advantage, as well as to differentiation.
● The ability to plan and implement in an integrated way boosts both competitive and comparative advantages as well as to overall effectiveness and value for money.
The Strategic Vision for Egyptian Tourisme
Egypt will be one of the world‘s foremost diversified, differentiated, and vibrant destinations for leisure and specialinterest tourism, where history, landscape, and sunshine fuse with the cultures of Europe, Arabia, Asia, and
Africa to create unique visitor experiences.
The vision is seen as setting a direction for Egypt that will build on its inherent strengths and potentials in a new customerfocused way. The intrinsic hospitality of the Egyptian people will be fused with positive lifestyle elements,
including a fascinating blend of the heritage and cultures of Europe, Arabia, Asia, and Africa. The objective will be to enrich the visitor experience through a multisensory approach.
The grand vision for tourism has to be anchored by planned practical actions and implementation. Hope is not a strategy results come from wellinformed effective planning, quality execution, and implementation, and the confidence of
selfbelief that Egypt can achieve its ambitions and the determination to do whatever it takes despite the challenges.
Strategic Mission for Growth Tourism
The proposed strategic mission is to double the tourism economy of Egypt by 2020 and embed tourism as a critical pillar in the economy of Egypt and a contributor to its social and societal well being.
Nine Critical Themes Supporting the Strategic Mission:
● Prioritize the tourism economy with clear statements of support and policy direction from the Government of Egypt.
● Improve the structures, institutions, organization, and context to underpin and drive tourism growth.
● Assign empowered, enabled, and resourced responsibility to achieve the targeted goals and results.
● Create the publicprivate “resultdriven partnership” to codevelop the sector.
● Strengthen existing air connectivity and hub activity with benefits to all the economy.
● Develop Egypt‘s five destinations in a comprehensive way with differentiating and
distinctive destination factors.
● Broaden the base of Egypt‘s tourism offerings through diversification in leisure, wellness,
special interest, and visitor experience.
● Expand and deepen the global reach and capabilities of marketing and branding across the full range of modern methodologies, media, and communications.
● Develop the capacity and capability of Human Resources to meet the needs of modern tourism, of Egypt‘s competitiveness and international qualifications, and of quality benchmarks.
Tactical Tourism Mission
Every destination faces severe challenges at some time as Egypt does currently. It is crucialthat Egypt regain the trajectory to sustainable growth as quickly as possible. The “Action Plan” which forms Volume II of this Strategy has been
structured in three phases:
● Actions that can deliver “quick wins” and “early returns” on investment;
● Actions for the medium term 201517; and
● Actions for the longer term up to 2020.
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
The Strategic Mission Objectives
The main objectives of tourism areto earn foreign revenue, create jobs, distribute income, contribute to social inclusiveness, and improve the quality of life of all Egyptians.
The challenge and opportunity is to prioritize tourism as a platform for development and as an economic driver and social contributor for Egypt via:
● Creating a unique iconic, engaging, and customercentric national destination for the modern
perceptive and discriminating visitor, with a spread of five major subdestination clusters;
This will be founded on the strengths of Egypt’s heritage, its unique blend of other cultures, its
climatic and landscape advantages and market led diversification into other areas;
● Positioning Egypt as a major diversified destination and prioritizing the development of high
yield sustainable tourism, specialinterest tourism and niche tourism;
● Developing a “resultdriven public private partnership” with all stakeholders and carriers, where all sectors plan, cooperate, work, and invest together to achieve agreed objectives and targets; and by
● Delivering support through tourism for selected developmental and economic policies and objectives,as set by the Government of Egypt.
Economic Objectives
● To double the value of the tourism economy of Egypt by 2020;
● To double the employment capacity of the tourism sector within five years and to ensure that this
new employment gives priority to Egyptians;
● To optimize and prioritize the opportunities for young Egyptians to enter the tourism business through employment and enterprise opportunity; and
● To optimize the integration of tourism as a support platform for other industrial and service sectors of Egypt’s economy.
SocioCultural Objectives
● To benefit the people of Egypt economically and socially through tourism;
● To create a welcoming society where every Egyptian is proud to promote their country, acting as an ambassador abroad and as hosts at home;
● To involve local communities as partners in proposed projects and in the development of the tourism economy; and
● To link tourism as the driver for the development of traditional souks and markets and the craft sector.
Development Objectives
● To be inspired and informed by the distinctive essence of Egypt, the vision established for tourism, and the quest for quality, excellence, and innovation
● To blend landscape, water, heritage, culture, and architecture to create a distinctive and differentiated country experience, with five internal destinations that will have their own distinct offerings and brands;
● To plan every aspect of the country, so as to engage and inspire the Egyptian public and to demonstrate this in the approach to development;
● To develop a destination and route reenforcement and catchment strategy for the major routes linking the new internal destinations with Cairo;
● To insist on quality development that includes cuttingedge distinctive Egyptian architecture and “smart” techniques. TDA to establish guidelines and standards to achieve this on their lands and in their projects; and
● To provide the education, training, and development of highperformance human resources across the range of management, marketing, professional, and technical skills required for tourism.
Marketing Objectives
● To establish a positive and empowering image and brand for Egypt that will be based on the essence of Egypt and itsvision for tourism that successfully differentiates it from its Regional and Global competitors;
● To vigorously market and promote Egypt and its tourism products and services to the world through a fully empowered and resourced ETB, working in partnership with the industry and carriers and with global networks;
● To develop a cutting edge web capability to serve the needs of tourism, its stakeholders, investors, and destinations to support emarketing and social media communication. To align and link with other web sites to facilitate
downloads, apps,etc.; and
● To work with the private sector to develop and maintain globally networked information, sales, and distribution systems for Egypt’s tourism products and services based on Egypt and its five internal destinations.
Quality Objectives
● To put in place a quality experience for the visitor from arrival to departure that will exceed expectations;
● To devise and implement a classification system for accommodation that will match global 1* to
5* schemes without compromising on quality and service issues; and
● To put in place a Best Practices classification system for selected tourism products and service,
particularly those with any inherent health and safety risk elements.
Heritage Objectives
● To conserve and present the full range of the rich heritage of Egypt for the enjoyment and education of citizens, residents and visitors. Thisincludes urban heritage, historical sites, social heritage, way of life, music, literature, poetry,
legends, stories, and oral tradition;
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
● To present Egypt’s great culture and heritage resource in innovative ways that allow for the optimum engagement and enjoyment by the national public and visitors;
● To use tourism as a catalyst to support the preservation, presentation, and revitalization of
Egypt’s Heritage, Culture, and Traditions; and
Egypt’s Strategic Tourism Goals 2020
Table 1
Past Peak Year
● To demonstrate to the population the economic and social value of preserving and showcasing the
heritage and culture of Egypt.
Goal
Represents a 70% increase on
Environmental Objectives
● To adopt an approach to development that will ensure environmental sustainability;
● To identify areas of special environmental interest and habitat and areas of natural and scientific interest, and to protect them under the law and manage public access for the benefit of residents
14.7 million 25 million
visitors
Increased foreign earnings $12.5 billion $30 billion
the 2010 peak
This represents a 140% increase on 2010 peak and will also require an increase in individual visitor expenditure of 47%
Government should be able to
and visitors; and
● To develop a range of Ecotourism products that respond to the requirements of modern and future visitors.
Increased income to
Government
Enhanced employment opportunities
LE 3.905 billion
2009/10
1.8 million directly employed and 1.2 million indirectly supported through tourism
LE 16.8 billion
2020/21
3 million directly employed and 2.5 million indirectly supported through tourism
capture up to 8% of total tourism revenue
Each additional viable hotel room creates 2.9 jobs direct and indirect
The success of the overall tourism development strategy relies on Egypt
● Developing and diversifying its tourism products and services responding to customized needs and trends and building high quality visitor experiences;
● Prioritizing customercentric elements and cherishing efficiency, organization, and service delivery;
● Developing a strong sense of place and style for Egypt and for the five internal destinations;
● Presenting its products and services to global markets, with a tight focus on strategic markets in which it can build comparative advantages; and
● Applying innovative and smart techniques throughout its product development, soft product provision, and marketing.
Tourism An Economic Platform
Where tourism is a high priority as in Egypt, the “Tourism Platform Concept” can be deployed to plan how the inputs into the tourism sector can be optimized so as to result in many valuable outputs supporting the multiple
dimensions of tourism, as well as many other sectors, such as food production (agriculture), beverage, retail, transport, local services, and craft.
Egypt’s Strategic Goals 2020
The 6th National Development Plan sets out the goals for Egypt’s performance to 2020. An annual growth rate of 7% per annum in GDP was projected, together with ambitions to alleviate poverty, attenuate income disparities, increase
gender equality, increase employment and business opportunities, and to achieve sustainability in all aspects of performance. It is not intended to alter these goals.
Shares of the World’s Gross Domestic Product
Table 2: Projected Change in Share of World’s GDP
The individual performance of countries, which are the source of most of Egypt’s tourism in terms of
GDP and population, are shown in Table 3 following.
Features of this are the declining population in Europe, Japan, and Russia (dramatically so in Russia and the Ukraine), contrasting with burgeoning populations in China, India, Saudi Arabia and North Africa. (Egypt’s population growth of 17 million
represents a potential forclose to a doubling of the population of Cairo).
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Table 3: GDP & Population Projections Projected Tourism Growth Per Region Numbers
Substantial growth will be required from all sources to achieve the doubling of visitor numbers by
GROSS DOMESTIC POPULATION G.DP PERSON GDP SHARES
PRODUCT PER 2020 against the levels recorded in 2007. The new markets of Asia will show the strongest growth
rate, but from a relatively low base.
2007 2020 Increase 2007 2020 Increase 2007 2020 Increase 2007 2020
Netherlands 404 514 27 17 17 4.2 24,339 29,710 22 1.04 0.84 2005 6,120 1,511 298 411 262 24 8,626 10.1
Spain 719 1,018 42 40 40 0.7 17,808 25,392 43 1.85 1.67 2006 6,260 1,706 341 470 302 25 9,100 10.2
Sweden 284 389 37 9 9 2.2 31,536 42,278 34 0.73 0.64 2007 7,815 1,677 426 667 390 32 11,000 10.1
UK 1,720 2,432 41 61 63 3.8 28,289 38,539 36 4.43 3.98 2008 8,604 1,760 468 734 410 33 12,003 10.1
Czech 74 135 82 10 10 2.0 7,275 13,491 85 0.19 0.22 2009 9,483 1,848 515 807 430 34 13,112 10.0
Hungary 61 109 80 10 10 4.0 6,069 11,354 87 0.16 0.18 2010 10,464 1,941 566 888 452 35 14,340 10.0
Poland 218 400 83 39 38 1.6 5,668 10,551 86 0.03 0.04
Slovakia 29 53 83 5 6 1.9 5,365 9,662 80 0.07 0.09
Switzerland 270 324 20 8 8 2.6 35,543 41,567 17 0.7 0.53
Serbia 13 23 81 10 10 1.0 1,239 2,269 83 0.03 0.04
Russia 399 796 100 141 132 6.5 2,819 6,019 114 1.03 1.3
Ukraine 49 89 81 46 43 8.0 1,066 2,100 97 0.13 0.15
China 2,319 6,593 184 1,322 1,431 8.2 1,755 4,609 163 5.97 10.79
Hong Kong 229 437 91 7 7 4.3 32,656 59,819 83 0.59 0.71
Japan 5,201 6,728 29 128 123 3.3 40,792 54,567 34 13.38 11.01
India 751 1,961 161 1,130 1,362 20.6 664 1,440 117 1.93 3.21
Australia 484 746 54 20 22 9.8 23,722 33,301 40 1.25 1.22
Saudi Arabia 251 468 86 28 34 21.7 9,096 13,929 53 0.65 0.77
Turkey 275 521 89 71 80 11.9 3,864 6,532 69 0.71 0.85
Israel 140 241 72 6 7 14.1 21,917 32,982 50 0.36 0.39
Egypt 140 261 86 80 97 21.2 1,744 2,684 54 0.36 0.43
Libya 49 93 88 6 8 28.3 8,223 12,042 46 0.13 0.15
Morocco 45 75 67 34 40 19.2 1,332 1,866 40 0.12 0.12
Tunisia 27 56 107 10 12 12.6 2,622 4,821 84 0.07 0.09
S. AfricaAfrica 173 337 95 44 41 6.4 3,931 8,173 108 0.44 0.55
Sudan 19 36 91 42 56 32.9 446 642 44 0.05 0.06
World Total 38,866 61,100 57 6,605 7,608 15.2 5,884 8,031 36 100 100
2012 12,136 2,140 624 1,065 498 40 16,496 9.9
2013 12,743 2,247 656 1,161 523 41 17,363 9.9
2014 13,380 2,359 688 1,266 549 44 18,279 9.8
2015 14,049 2,477 723 1,383 576 46 19,247 9.8
2016 14,752 2,601 759 1,514 605 49 20,271 9.8
2017 15,489 2,731 797 1,660 635 51 21,354 9.8
2018 16,264 2,868 837 1,823 667 52 22,502 9.7
2019 17,077 3,011 879 2,005 701 56 23,718 9.7
2020 17,931 3,162 923 2,209 736 58 25,008 9.7
Growth 108% 80% 97% 121% 80% 78% 108%
Projected Tourism Growth Spending and Nights
Average length of stay is likely to fall throughout the period, mainly because of the significant increase in shortstay Asian traffic.
Average revenue is also required to increase by an average of 30% overall in real terms. While room rates can be expected to show a solid rise of 18%, growth should be strongest in discretionary spending as tourists respond to the stimuli
elicited by measures recommended in the strategy. Both external and internal competition will continue acting as a brake on what can be done to raise rates.
In summary, the following table provides a plausible and realistic scenario to meet the targets set by the Ministry.
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Table 5: Projected Growth by Year An important element of advocacy is in convincing the government to become an active stakeholder
and
YEAR 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 well as for the positive societal effects on the livelihoods and lifestyles of its citizens.
Daily
Spend $ 100 101 102 103 104 107 110 113 116 120 123 126 130
Visitors (million) 12.0 13.1 14.3 15.7 16.5 17.4 18.3 19.2 20.3 21.4 22.5 23.7 25.0 The Tourism Strategy for Egypt is based on the following selected
principles
Revenue $ (b) 12.1 13.2 14.6 16.0 16.9 18.3 19.8 21.4 23.0 25.0 26.8 28.9 31.3 ● The strategic model will be one of Managing Tourism for Economic and Social Success that is
Av Stay Nights 10.1 10 10 9.9 9.9 9.9 9.8 9.8 9.8 9.8 9.7 9.7 9.7 customized to the requirements of Egypt.
Total ● The context for the future marketing and development of Egypt’s Tourism shall be “result
Nights (million) 121 131 143 155 163 171 180 189 198 208 219 230 241 driven
partnerships” amonggovernment, the public sector, the private sector, civil aviation, and others
within policies and structures that facilitate collaboration, partnership working, and investor
confidence.
Projected Tourism Growth Employment ● Government and private sector will invest in tourism based on the defined deliverables both
parties want to achieve as returns on their investment. Both will be as specific as possible as to
Table 6:
EMPLOYMENT
2008 (000)
2020 (000)
VAR. (000)
Investment is the principaldeterminant of future tourism success. This includes capital
●
investment
in tourism, air services, and infrastructures, product and experience development, innovation, marketing investment, investment in quality, service delivery, and human resource development.
what these desired deliverables and outcomes are.
Direct
Hotel 208 422 214
Other 95 514 419
Total 304 936 632
● In developing its tourism economy, Egypt will plan to ensure that its tourism development is sustainable with the preservation of its heritage and environmental excellence and eco principles.
Indirect Total 240 647 407
Induced Total 418 1405 987
Total 1,265 2,989 1,724
Building the Tourism Economy is a Top Priority for Egypt
The reasons for developing the tourism economy or for accelerating its growth are compelling and relevant for Egypt. Tourism and travel is one of the world’s largest industries and is set for strong future growth particularly in the Middle
East making it a sector that merits serious consideration for its potentials to contribute to economic and social development.
If public policy makers had to describe their ideal economic stimulant, tourism would fit that definition better than most other options. However, this may have to be advocated to government and policy makers by ENCC, as the strength of
the evidence may not be immediately apparent to all.
Supporting arguments are set out in Annex III. The Values of Tourism:
The values of tourism as set out in Annex III are seldom apparent to government. Most ministers and ministries are “spending” departments, yet if money is not first earned, there is no money to spend. Tourism is about earning money
earning valuable foreign revenue. Government needs to understand the full range of benefits that can be derived and how tourism also works to support Foreign Direct
Investment and business as well as local communities.
● Market and customer requirements will drive the development and marketing of the industry within the principles of sustainability established by the strategy.
to the range of products and experiences it will offer to its diverse target markets based on deep
market research.
● Egypt will position itself as a “leading Large Diversified Destination,” with an expanded approach
● Egypt will apply the principles of social inclusion in it tourism approach.
Social Inclusion:
● Tourism should target the citizens and communities of Egypt as primary beneficiaries by providing opportunities for employment and income generation, and by positively contributing to government programs, by supporting
quality of life and environmental excellence, and by developing communities and society.
● Tourism should be inclusive in its approach to involving people, culture, and communities.
● Tourism policies should always consider social impacts and the erosive effects on underlying resources and should plan to minimize them.
● Tourism enterprises should invest in skill development and training to enhance human resource development and capacity building across the sector.
● Tourism developments and facilities should always be open to the use and enjoyment of local residents, as well as of visitors.
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Structuring Tourism for Success
There are a number of recommendations for enhancing structuring that will support growth and success in the tourism economy in the context of the National Tourism Strategy.
The components of the tourism structure are wider than they are for most sectors, and the framework includes government, ministries, institutions, state companies, and the private sector. At the core of the new strategic direction is
“Partnership”. This is the recognition that in the modern world and with regard to modern economy no single institution or ministry can succeedwithout the engagement and assistance of other partners. The organization of government
around the world continues largely to replicate models from the past, rather than new or innovative models that reflect the future.
The traditional organization of government is vertical,where as the modern economy demands a lateral approach because solutions to most challenges are now linked to several ministries and no longer reside in one. Tourism is a broad area
with requirements and impacts that spread over the mandate and jurisdiction of many ministries, and it requires the cooperation and collaboration of several ministries to achieve its outcomes and objectives. All countries now need to
adopt a new paradigm of interministerial and interdisciplinary, resultdriven work and collaboration. To respond to this imperative, modern governments have created subgroups of the cabinet to deal with priority issues.
The top national priority issue is the development of the economy, because economic success provides the funds needed by spending departments like education, health, security, etc. Responding to this imperative, the Government of Egypt
has created a high level “Economic Committee” of Cabinet, and the Minister for Tourism is a member reflecting tourism’s recognition as a key economic pillar and major contributor.
The Supreme Council for Tourism established previously by Presidential Decree creates a sound structural component for an industry like tourism, which is difficult to delineate as it intrudes and touches on so many diverse areas that
are across and within the mandate of other ministries in the vertical organization of government. This is an excellent and necessary overarching group, which can help to fast track progress by removing barrier issues. Up to eleven other
ministries could potentially be involved in the Council. However, the major players are likely to be Civil Aviation, Antiquities, Heritage, Culture and the Arts, Interior, Transport, Education, Environment, and Health. These more detailed
and engaged relationships require joint ministerial technical groupings, as has happened between MoT and MoCA already. The ENCC is the ideal body to provide services to this group to maintain a focus on competitiveness.
The Ministry of Tourism and Ministry of Civil Aviation have already recognized that they are in a symbiotic relationship. They depend on each other for success and therefore should plan, work, and invest together to define and
achieve results that are most critical to Egypt’s success. A technical group is already operating and is also dealing with the arrival experience of visa, airports, and arrival services. This group should expand as necessary to include MoI (visa
and police), MoTR (taxis and coaches), and others as itswork develops.
It is recommended that technical groups also be established by MoT in other areas envisaged by the current strategy as important:
● With Ministries of Culture, Antiquities and the Arts because of their relation to the visitor experience at sites and attractions under their control and particularly how a much higher level of innovation and creativity can be achieved in
showcasing heritage and culture. The priority project must be the Pyramids of Giza to prove that these the world’s greatest manmade structures from the history of civilization can be developed into a worldclass visit experience.
● With Ministries in the Environmental and Eco area, so that development planning in new tourism areas like the Red Sea, Mediterranean Coast, Siwa, and the Western Desert can be of the highest environmental quality and Best
Practice.
● With Ministry of the Interior in relation to the visa issue and policing.
● With the Ministry of Transport (MoTR) in relation to internal transport issues taxis, coaches, buses, and trains.
● With the Ministry of Health (MoH) in relation to food handling and licensing of restaurants.
● With ministries and agencies involved in education and training withrespect toeducation and training across the range required for the tourism sector.
Ministry of Tourism Board Concept
The Minister for Tourism must lead and coordinate the tourism sector. This can no longer be delivered effectively through a “control and command” approach. To provide in the most modern way for coordination and integration of effort, the
concept of a “Ministry of Tourism Board” should be explored. This would be chaired by the Minister and consist of the Minister and Secretary General of the Ministry of Tourism, the Chairman and CEO of the Egyptian Tourism Authority
(ETA), and the Tourism Development Authority (TDA), and the Chairman and CEO of the Egyptian Tourism Federation, together with three selected independent individuals chosen for their overall ability, skill sets, and experience.
The MoTBoardwould function like any other board. It would not be executively involved, but would deal with sector governance, policy development, high level direction, planning, and target setting.
Reforming the Institutional Framework for Tourism ETA and TDA
The ETA and TDA are the two leading institutions of the MoT in the drive to achievethe Development and Marketing of tourism. Two strategic options are offered for consideration:
1) an evolutionary option as provided for in the 2008 strategy and 2) a transformational option as an alternative. If there is confidence in the currentmodel, then it can, with change and planned evolution, be made effective to deal with
future challenges. Ifconfidence in the current model’s future capability is weak, then transformation replacing or rebuilding the model is indicated. In the case of the ETA,the transformational Option involves insights and anticipation
into how the National Tourism Authority (NTA) model will change in the period ahead. The advanced models have been proposed for consideration, as Egypt has significant ambitions for growth and has all the potentials to be a major
destination.
Transformational change has a higher level of difficulty and requires greater capacity and capability to
achieve successfully.
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Refreshing the Talent Pool
It is virtually impossible for Ministries and National Tourism Authorities to keep abreast of the rapid and accelerating developments in communication, marketing, niche marketing, branding, product development, etc. To remain at the top
in terms of performance as Egypt must the pool of talent requires continual refreshment byyoung graduates and specific skill sets that will enable a higher level of innovation throughout the system. These young leaders must be
identified, recruited, and supported to ensure the health and competitiveness of Egypt as an overall destination.
The strategy recognizes that in the transformational option the ETA in particular will become a body that plans and manages work that increasingly will be delivered through technical contracts rather than through direct employees.
The Egyptian Tourism Authority
Option 1: Remain as Recommended in 2008 Strategy:
In 2005 an EUfunded assessment was undertaken of the ETA, the operational arm of the Ministry of Tourism responsible for the promotion of Egypt as a tourism destination. It identified the ETA’s functions as follows:
a) Evaluating the Egyptian tourism product;
b) Setting up plans and programs for tourism promotion; and
c) Setting up tourism attraction themes, domestic and international, by all means.
2008 Strategy Recommendations:
The concept of separating the marketing function from that of the ministry is correct. It should continue as a statutory board responsible for achieving broadly defined marketing goals set by the MoT in the areas of research and
promotion.
To this end the organization should be streamlined by divesting it of servicing (e.g., local tourism information offices) and pursuing development functions, as well as promoting domestic tourism, thereby
enabling management to focus attention on its core.
The ETA should be provided with the necessary resources to fulfill its responsibilities.The organization should prepare strategic marketing plans (both market and productspecific) to meet longterm objectives and goals set by the
MoT. Annual plans should be drawn up to achieve shortterm targets set by the Ministry. Personal responsibilities for achieving these goals should be identified and performances monitored and rewarded.
All initiatives should be based on research; should be in accordance with the ETA’s strategic and tactical goals; and should be evaluated for value thereafter.
It is essential that the ETA continue implementing the reforms already underway under the terms of the EU Twinning Project.
2008 Recommended Actions:
It is important to modernize ETA’s management systems and to improve its institutional capacity and human resources capabilities in order to improve competitiveness in the global tourism marketplace.
The ETA’s performance in servicing visitors has not been seen as successful; it probably diverts management attention and resources away from its main tasks of international promotion. The Authority should be relieved of the
responsibility for timeconsuming ancillary activities, such as maintaining Tourist Information Offices (TIOs) whose operation, if deemed necessary, should be transferred to governorates and municipalities.
Option 2: Futurist Option:
The role of bodies like the ETA will change very significantly from doing work to managing “Service Delivery Contracts” by other technical suppliers, who are specialists in the services they offer market based representation, web
management, social media marketing, brand development, integrated marketing, advertising, promotion, and strategic communication. In this scenario:
● The ETA will be governed by the private sector and will work in an integrated partnership with the private sector, and will continue to lead implementation in areas of special challenge, such as research, opening new markets,
national branding, strategic communication, etc.
● The private sector will take on the major role in marketing marketing will be through the most direct methods. Technology will be dominant as an information provider, booking and payment mechanism, as well as in promotion.
Reputation will become a critical factor, because “word of mouth” has been replaced by empowering communication tools that enable complaints to be put on the record that can impact customer decisionmaking.
● The focus of both development and marketing will be the “destination” and the challenge for the destination will be to avoid homogenization and to differentiate itself from the thousands of destinations that will be vying for
attention in the market place.
● Destinations are dynamic places people want to visit, and the destination authorities, businesses, and stakeholders will have to continually plan, invest, and renew together to ensure that they remain competitive, authentic, and
differentiated with strong attraction factors and distinctive imagery, messaging, and branding. Destination must create “standout” attributes that are authentic.
● Egypt as a destination will become less viable, and cities and destinations will become more important for all types of tourism than are countries in terms of image, economy, wealth, and consumer markets. Cities are the key nodes in
the global economic, political and connectivity network for power, finance, trade, talent and transport.
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
The Tourism Development Authority
Option 1: Remain as Recommended in 2008 Strategy:
The Tourism Development Authority has broad development responsibilities; in practice, however, most of its activities seem to be directed to selling development sites from its land bank to prospective investors. It does engage in other
activities, such as the implementation, on behalf of the MoT, of attraction improvements, urban planning, etc. Their role is essentially passive.
There seems to be a gap in the public planning of tourism. There is no agency responsible for taking the lead in (a) identifying new amenities and facilities needed and/or improving existing ones, (b) thereafter prioritizing them, and then (c)
implementing.
Strategy:
Expand the role of the TDA to act as a tourism development agency on behalf of the MoT.
Action:
Change the constitution of the ETA (if necessary) to take on additional responsibilities, in particular that of the physical development of tourism facilities and amenities so that it can move to fill identified gaps in the tourism experience.
In addition to the legal changes required to expand its responsibilities, a development fund should be established to assist with the establishment of necessary attractions/amenities, which otherwise would not be provided by the private
sector.
The responsibility for infrastructure development would remain with line ministries, governorates and utility companies. The TDA would intervene with financial or technical support only to partly fund an initiative, which would be
deemed key for tourism development.
The modus operandi for the TDA would be to draw up development programs with clearly identified objectives to be served (e.g., increasing the numbers of interpretative centers) and criteria for disbursements of funds (e.g., 25% grant).
Applications for support would be invited (where appropriate) from other ministries, agencies, governorates, regional tourism organizations, NGOs, communities, and the private sector.
The TDA would allocate the available resources in the fund according to best returns promised from each investment. Implementation would remain the responsibility of the sponsoring body. Resources for the fund could be sourced either
internally from donors by way of grant or loan, and/or from the government.
The TDA would be responsible for the coordination of the proposed Regional Tourism Offices.
The TDA would need to recruit skilled, motivated staff to cope with expanded functions.
Option 2: Allocate the following additional functions:
● Strategic planning for tourism development will continue to be national, but detailed planning and implementation will focus on the “Destination Economy”, which will be an “areadefined” economy.
● The TDA will concentrate its development program on the five destination areas and the sub
destinations and resorts within them.
● The TDA will ensure that each destination has a significant anchor project, airport access, sufficient attractions, and training capability (school).
● The TDA will have the role of setting standards, maintaining, and monitoring standards for
designated areas of tourism including hotel classification.
● TDA will have an expanded role in HR development for tourism.
● The TDA will have a specific role in attracting and dealing with Tourism Investment.
● Governments will not be able to afford all that needs to be provided to the standard and quality required; therefore, apart from selected key national institutions, the government will increasingly seek private sector investment,
operational partnership, and management to achieve the quality and range of services required in visitor attractions. Even the selected key national institutions will partner with the private sector in many areas delivering visitor or
specialist services security, cleaning, food and beverage, retail, communication, interpretation services, display and design, etc.
● The TDA should have a role in defining the rules and engagements around PPP’sfor the tourism
sector.
● There is an important national role for the TDA in aligning tourism requirements with national spatial strategy and national infrastructure development/investment.
● The TDA should have a role in guiding and monitoring the industry in the optimum use of scarce resources, such as energy, water, waste treatment, etc., and be empowered to carry out audits and give professional advice and
guidance.
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Refreshed Tourism Strategy 20132020 The Way Forward and New Horizons
Chart No. 3
Top Level Structure for the Institutional Framework
CABINET
Egypt also has Chambers of Commerce. These have been ineffective in adapting their methods to deal with tourism, but in some jurisdictions special Chambers of Tourism have emerged that can improvedesign and set the agenda for
tourism.
CommunityBased Tourism
Economic Committee of Cabinet
ETA
Minister for
Tourism
Private Sector
Partnership
Supreme Committee for Tourism
TDA
Inter Ministerial
Committees
MoT Board
All tourism is intensely local at the point of delivery, so all developed and successful tourism countries provide both an organizational architecture,as well as support, to allow community tourism to emerge and to support its development.
This has now been facilitated through the adoption of the ‘distributed strategy’ with multipledefined internal destinations. The plans and methods used for development should also be shaped to support the emergence and strengthening
of community tourism and SMEs.
In the recommended communitybased tourism approach, anchor projects, such as hotels or resorts, are encouraged to outsource as many of its services as possible from within the local community. This can include a wide variety of
service possibilities, such as local transport, equipment hire, sports and adventure participation, learning products, guiding, and special interest.
Partnership and Communication
Partnership forms the core of the strategic principle of integrated planning working, investing, and implementing together. It is a state of mind that seeks to combine all of the partners in crafting implementation solutions. In a true
partnership, power is pooled and the rule is that whoever is best placed to take action does so. Partnership can have a slow start as it has to be proven that cooperation is superior to acting alone and competing locally.
Partnership involves learning a different mindset and doing things differently. The private sector is the engine for growth, but in tourism they cannot succeed without the active constructive support of government and the public sector.
The optimum and effective strategic working relationship is one of resultdriven partnership. Successful partnership is based on trust and common interest.
The Private Sector
The private sector is the engine for growth, but governmental policies of the past can result in a weak and dependent private sector, or a private sector that is unnecessarily restricted or impeded by regulation. The private sector itself has
inherent divisiveness until it matures through the experiences of teamwork and partnership. At the start of partnership, some stakeholders often see each other as competitors, whereas the real competitors are outside Egypt.
Egypt is fortunate in having the Egyptian Tourism Federation this replicates a Best Practice type body, where all the concerns of the integrated sector can be formulated and solutions proposed to MoT or government. The ETF and its sub
groups should be prepared to participate in the many expressions of coworking and partnership necessary to drive the modern economy.
The importance of getting partnership begun correctly is critical, as are the structures for communication consultation and commitment. The partnership for tourism must be created and managed and takes time to work well. Partnership
further enables the integrated approach that is critical to strategic success.
The immediate tourism partners include:
● The Ministry of Tourism (MoT),
● The Egyptian Tourism Authority (ETA),
● The Tourism Development Authority (TDA),
● The Egyptian Tourism Federation representing the Tourism Industry (ETF),
● The Air, Surface Carriers, and Cruise companies,
● Tourism Service Providers, and
● The external Distribution Network (Tour operators).
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All have a significant stake in the success of the tourism economy, but none of the partners can secure that success independently. It takes care and time to structure the type of true partnership envisaged in the strategy by which targets,
actions, and commitments are agreed upon and managed dynamically. The private sector is the engine of growth; the role of the public sector is to support and facilitate the private sector within an agreedupon framework to achieve
objectives and targets. The Ministry of Tourism must work (within government) to create aclimate that encourages investment the principal driver of future success and to harness the support and resources of other ministries to achieve
an integrated approach. Investment covers not only the creation of physical products, such as hotels or resorts but also investment in essential infrastructure, as well as in human resources, marketing, training, quality, and services.
Implementation:
Implementation is the critical success factor and must be the main focus throughout. Strategy provides a framework and the templates for implementation, which must be executed by partners, frequently in cooperation and coworking.
The communication process must be clear in terms of what is required from each partner.
Change is invariably inherent in the solution. Successfully implementing change is always a challenge
the speed and sustainability of change always depends on the quality and experience reflected in the planning for change and also on the support mechanisms that are put in place to support the change processes. In the analysis that
precedes action the most important component of the analysis
● Cairo.
● The Nile River.
● The Mediterranean Coast centerd on Alexandria or The White Sand Coast or
White Sea Coast centered on Alexandria:
● The Red Sea or The Red Sea Riviera a cluster of beachbased/marine tourism resorts
● Western Desert Oasis Eco Resorts.
All of these destinations currently have distinctive characteristics, as well as opportunities and potentials that will allow Egypt to offer a greatly expanded and diversified portfolio of products and visitor experiences to international
markets.
The destination designation covers large land areas and, in addition to destination status, they are in effect clusters.
are the “Competitiveness” factors. ● Sharm el Sheikh.
● EinSukhna.
● El Gouna.
● Hurghada.
Egypt is a large and diverse country with a population of 84 million. Traditionally, it has been branded MarsaAlam.
●
and marketed as “Egypt”. The development of Sharm el Sheikh, begun in 1982, saw inflows of
investment and government support to create a worldclass resort in South Sinai in effect a
destination within the destination that had already established an independent international
For example, the Red Sea is 2,250 km long and between 30km and 350 km wide covering an area larger than many countries. The Red Sea, therefore, can only act as an overarching destination description, where it already has the
advantage of international recognition. Within the Red Sea area five main tourism centers make up the Red Sea cluster. Over time these tourism centers will develop their own status as destinations, as Sharm el Sheikh has already done,
and as the others are at various stages in doing. The strategy will enhance the effort to achieve destination distinctiveness:
A Destination within the Destination Strategy
The creation of this distributed approach may require a new law that can properly govern its
development and create the context within which this key element of the strategy can develop to
full fruition.
The refreshed strategy envisages the extension of the destination concept to five areas as follows:
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For example, the Nile River being a long narrow corridor zone has distinctive centers with significant
heritage assets at Luxor and Aswan, which may be visited by river, rail, and air.
For example, the Mediterranean Coast is a very large area centered on Alexandria, but with many other centers within the cluster including El Alamein, Marina, MarsaMatrouh, and El Dobaa, etc.
Table 7
Destination Designation Types of tourism Priority Markets
Urban Tourism Business
Like the Red Sea destination area, many of these centers will develop further and establish stronger images that will be relevant to global and regional markets. Alexandria also has an important role
Cairo
Tourism Culture and Heritage
Ancient Egypt Religious tourism
Multiple types
Shortstay tourism
All markets served by the
airline network
to play for Egypt, as well as being the destination as Port of Call for Mediterranean Cruise traffic
and passengers.
Mature travelers
The Nile River River Cruising and Heritage Incentive travel
Residential Tourism More
Europe and USA Some potential in China
Cairo:
Cluster of based resorts
mature beach and marine tourists
Younger and more active
Europe
Northern & Eastern
existing and new sites. This major population aggregation and expansion has overwhelmed the infrastructure, particularly roads and bridges, as well as services like public transport. All of these
The Red Sea
beach and marine tourism
beach, marine tourists
Europe Regional
choke the city and destroy its enjoyment for citizens, workers and visitors. The only current, visible potential for shortterm relief is to make greater use of the river Nile, which is largely traffic free. With the creation of landing and
docking areas, there must be potential for waterborne public
Desert Tourism Eco Resorts
Western Desert Oasis Adventure
Young professionals and Europe
adventure seekers
transport that could be provided by the private sector through PPP’s. Such transport could also become a new tourism product.
The city will require a much improved approach to city planning to attain world class status that Cairo requires to properly fulfill its role as the Capital of Egypt and a leading city of the Arab world and the Region.
Destination Strategy
It is envisaged that after the completion of the refreshed NTS that each destination will create a customized “destination strategy” and action plan. This plan will be very specific in terms of the product portfolio and visitor
experiences it will provide and the general and niche marketing it will engage in and support. It will also identify priorities within the destination for development and for marketing. Like the refreshed ENTS it will be expected
that the strategy will be one of “growth with purpose” and that both economic and social issues will be considered and planned for.
Each destination is being positioned so that, from the start or as soon after as is feasible, it will have a full service airport allowing for direct international air access. Each destination will have the freedom to develop its brand and
individual and unique marketing, but it will be highly recommended that the subnational brands reflect and be consistent with national branding and participate in international marketing events under the banner of Egypt and
the organization of the ETB.
The indicators below are broad each destination will, in time and in line with itsstrategy, evolve distinctive offerings and target specific markets and refine its targeting based on researched evidence.
Sun and beach tourism is dominant in Egypt’s current market mix, accounting for up to 80% of
the market, thus providing a strong indicator supporting diversification and enrichment of the tourism product and visitor experience. Beach tourism enriched with other ingredients is stronger and has wider appeal particularly
to higheryield groups.
Nile cruises are capable of offering products and experiences of differing durations long cruises from Cairo to Aswan, medium trips from Cairo to Assiut, and short trips from Cairo to BeniSuef. This variation, properly promoted,
can widen the marketing net for the Nile cruise product and experience.
Desert tourism and tourism in the oasis of Siwa are sensitive. Care must be taken with development
to reflect authentic local concepts, with marketing to attract the right types of acceptabletourism, and to respect the carrying capacity of fragile sites.
The designation of five destination areas automatically brings with it the need to take a segmented and niche approach to marketing. Both require specific research as they involve target marketing. The evidence is that while the
change to more targeted marketing can be difficult, the rewards include greater loyalty, higher levels of repeat visitation, and easier communication once the specific communication networks in each segment/niche are
understood. The laws and regulations regarding permits for some forms of marine and desert tourism need urgent amendment, as they are barrier issues that have outlived their usefulness.
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Destination Strategy Egypt
Chart No. 4
Egypt National Tourism
Destination and Brand
local, or business environment. While those factors remain a constant, the real issue is one of achieving effectiveness not just using the important measure of growth of the tourism economy, but also to be effective in planning for and
dealing successfully with the wider issues of ensuring social benefit, community development, distribution and spread of economic benefits nationally, environmental and sustainability values, work force capacity building, etc.
The Model for Economic and Social Success
Western Desert
Eco Resorts
Mediterranean Coast Centered on Alexandria
Nile River and Valley
Cairo
Red Sea
Region
The model proposed for Egypt is based on the concept of “Managing Tourism for both Economic and Social Success.” This model recognizes that the real challenge for growth tourism is to benefit the people of Egypt through Tourism. It is,
therefore, a mandate that embraces both economic and social challenges, as it constantly adapts to and responds to change. This recommended model is sensitive to both economic and social imperatives, which could be particularly
important for Egypt at this point in
its development.Siwa El Alamein Luxor Sharm el Sheikh
Marina Aswan Ein Sukhna
Marsa Matruh El Gouna
El Doboba Hurghada
The model can accommodate all aspects of growth, positioning, and distribution ambition by managing the actions and investments that are necessary to achieve various agreedupon outcomes and objectives. The model structure is that of
“ResultDriven, PublicPrivate Sector Partnership” in which the public and private sectors cooperate closely as partners to agree, plan, implement, and invest in the development of tourism, so as to achieve agreed targets and objectives.
The reason for this is that while tourism is the business of the private sector, the private sector can never succeed alone in developing it without the engagement, involvement, and investment of the public sector.
The Tourism Drivers
Places of Special Interest
Marsa Alam
To gain widespread understanding in order to assist implementation, the model aggregates the key tourism challenges into three groupings:
1. Those elements that “Make Tourism Work” the “Market Makers”.
● Where these are not in place and working well, tourism development and growth will be erratic and inconsistent and there are likely to be gaps, which diminish competitiveness.
In addition to the destination clusters the strategy recognizesthat there are a number of other “Places
of Special Interest” whose attractionsare sufficiently strong to attract specialinterest visitors, either currently or with potential to do so with future development. These will be identified later as part of the future work on the internal
destination strategy.
Managing Tourism for Economic and Social Success
Given the strength of Egypt’s assets and their high global recognition factor, tourism can be a secure pillar of the current and future economy, bringing many values to the social and community side, as well as improving livelihoods and
lifestyle of its people. Egypt with its potential to be a leading destination must also be a leading practitioner of Best Practice in tourism development, marketing and quality attainment. Tourism is ever challenging and always working
with difficult elements in the global,
2. Those elements that “Drive Market Growth” the “Market Drivers”.
● Where these are not aligned and working well in an integrated way as well as being globally competitive, tourism growth will be lower or slower than it could be; so it is always a priority to get them right.
3. Those factors that “Accelerate Growth” the accelerators this is the advanced position which can only be contemplated when 1 & 2 are working well:
● Where 1 and 2 above are working well and integrated, certain priority actions can accelerate the pace of growth above international norms.
The model is capable of planning and managing a “Total National Approach to the Sustainable
Development, Growth, and Distribution of Tourism for Economic and Social Success.”
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These three phases representing the priority themes convert into annualized business plans. The
success factor in all three phases derives principally from the quality of implementation, the
integration of actions, and the strengths of teamwork and partnership within the model.
What do Tourists Need?
Table 8
Access Transport carrying capacity a d
connecti ity with major source ts Technology capability& deployment Competitive advantage
marke
and hubs n
v
Security* and freedom from crime
effectiveness of rule of law and enforcement
Comprehensive deployment of research based target marketing
Distribution and sales network
The recommended model brings discipline to the widespread confusion by providing an effective template that can be widely understood, because all leisure tourism (holidays/vacation) is composed ofcombinations of seven component
elements, which can be planned for, invested in, and controlled, and each one is essential in creating the competitive mix for international tourism.The seventh component factor is climate which is uncontrollable. But, happily, climate can
be a positive for Egypt.
Entry Regime Visa etc. Branding and marketing Advanced partnerships
Building emotional value into the offer proposition
Product Value Proposition
The Seven Essential Components of International Tourism
Research for EvidenceBased Decision
Building capacity of private sector to sell Competency in technology integration and
The seven essential component issues for tourism are:
Making
directly
Product innovation
functionality
1. Transport Access to the country in terms of the access (visa) regime and transport by Air,
Capacity of sector HR Marketing support service
Capability of HR
*includes Health Security
Using this template of “Market Makers” and “Market Drivers” to manage the sector, to assess competency, and to address weakness will keep Egypt and its destinations in a strong position for growth.
Implementing the Selected Model
The implementation of the model approaches the overall challenge in three phases. The level of effort, duration, and time scales of each phase depends on the current state of development, the business environment, governmental priorities,
and the levels of capability within the institutional framework on the public side and the trade on the private side.
1. Tactical management This phase is focused on making the current approach work better as quickly as possible by shaping it up to align with the model requirements.
2. Sustainablemanagement This phase concentrates on identifying selected tactical elements that can be made sustainable as quickly as possible. It also focuses on removing or diminishing known and obvious barriers to growth.
3. Strategic management Manage the Tourism Sector for Economic and Social Success
This phase concentrates on implementing the national tourism strategy that can deliver sustainable growth on the economic side and for optimizing positive social benefits to the people of Egypt and communities on the other.
Sea and Road. Direct air access is the most crucial followed by the ability to move around to different internal destinations and attractions following arrival.
2. Accommodation a range of hotels and other accommodations suitable for international
visitors, which meet established global criteria for registration and classification.
3. Food/Cuisine not just food to keep people alive, but food as an experience. Cuisine has increased its standing and weighting as a factor for tourism and experience.
4. Things to see and do during the day attractions.
5. Things to see and do at night from 18.00 onwards.
6. Tourism services all the services that visitors need and avail of when on holiday.
7. Climate important, but while predictable fair weather is an advantage, it cannot be controlled. These seven component factors apply to Egypt and also to the selected internal destinations.
The analysis required by the model first looks at the strengths, weaknesses, and diversity (range of choice) of each essential component, so as to detect any serious deficiencies. For example, number 5 of the essential components
“things to see and do at night” is often weak and this weakness becomes a limiting factor in attracting international visitors if not corrected. The analysis looks at each set in terms of product development, investment, and the “visitor
experience”, which is now a key factor in competitiveness.
Example Access
Air, sea, and land provide vital access for tourism and the entire modern economy. Clearly in the case of international leisuretravel and tourism, the air network is critical in establishing the connectivity
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network, frequency, carrying capacity, and cost/value rating. Direct access from source markets to
destinations including scheduled flights and charter service is a keystone success factor.
Egypt is among countries with policies to protect the national carrier Egypt Air. This can work against their wider economic and social interests.
Examples: Ireland:
Ireland as an island country is a perfect case in point: Up to 1985 the national carrier was holding the country to ransom. It was an uncompetitive loss maker and had to be subsidized by government and also charged high fares. The limited
deregulation of air transport between Ireland and the UK in 1985 gave rise to the birth of Ryanair, which has grown to be the largest and most profitable airline in Europe carrying 76 million passengers in 2011 with 1,500 flights a day to
170 airports. The national airline is also competitive and profitable carrying 10 million passengers in 2011. Together the two airlines dominate European traffic into and out of Ireland, with 80% of the market. Out of the 66 cities served,
31 are contested, and these contested routes consistently show the most competitive fares.
Morocco:
Government liberalization on access and ownership shows an increase in traffic of 33%, a reduction in fares of up to 26%, increased employment of 300%, and a steep rise in profits from operation.
Turkey:
Government liberalization on access and ownership shows an increase in traffic of 56%, a reduction in fares of up to 43%, increased employment of 50%+, and a significant rise in profits from operation.
Cruise passengers and sea borne traffic will be important for some destinations like Alexandria and the Red Sea. Egypt has land borders, so road access, border check points, and the road distribution network on entering Egypt its quality,
signposting etc. will be important factors for tourism and the economy.
Following arrival, tourists have to get around their chosen destination, so all the local transport has to be considered coaches and tours for groups and taxis, car hire, bus, train, bicycling, even walking for FIT travelers. A most
important consideration is that information on transport options is readily available on web sites, on the spot and for prebooking, and that quality is good, and that people can use the local transport safely and with confidence.
Issues that can diminish competitiveness include: weakness in the government’s understanding of competitive governance, of direction and leadership, of the institutional framework for tourism, and an underfunding of tourism given its
economic role and potentials. Also weakening are laws and regulations that do not match best modern practice in fostering enterprise and protecting public/ consumer interests; weak visitor experiences (even at major sites); uncoordinated
human resource development; weak quality control; weak regional reach; and little tourism servicing. These identified weaknesses require workable and affordable solutions across a range of diverse factors, which remain relevant to
competitiveness and customer and market requirements.
Integration
An important factor in the success of the model “Developing Tourism for Economic and Social Success”
is integration:
● Integration best captures all of the available energies in the stakeholder partnership intellectual, financial, operational and focuses them more synergistically on the goals and objectives.
● Integration best combines and represents the diverse relationships and interdependencies of the sub sectors.
● Integration is effective in building competitive advantage.
● Integration is the only option capable of underpinning and assisting acceleration.
● Integration requires partnerships. The creation, operation, and development of these partnerships represent “Best Practice.”
● Integration will create higher added values against inputs than other options.
Integration rejects other approaches and methodologies on the grounds that they are partial and less effective.
Marketing
The future market place will be exceptionally dynamic and busy. There is already an information and marketing overload in which homogenization is regrettably playing a greater role. Consumers are exposed to several thousand marketing
messages and offerings each day. Customer filters are, therefore, active and strengthening. Differentiation will remain a key competitive and success factor, where it is based on real and authentic meaningful elements that can be sustained.
These elements need to be identified, secured, and developed by destinations, which will require careful planning and investment as they involve hard, soft, and emotional components. The Internet, which has a great capacity to aggregate
people, is developing an array of streaming tools that will help people find what they need and to exercise comparison analysis to inform their decisionmaking. This will have particular relevance to the travel and tourism industries.
● The Visitor Experience has become the central factor for success in leisure tourism these
experiences need to become deeper, more fulfilling, more satisfying, and better defined.
● Country image and reputation will remain important, and will be positioned and embedded through destination branding where possible, which will include countries and destinations within countries.
● Marketing and sales will be through major routes to market, such as Global Digital Systems (GDS), Tour Operator, Hotel Group and Carrier Networks, Central Reservation Systems (CRS), and Direct Booking WebBased Systems.
● Rational values were always important in the “offer,” but are now joined by emotional values and engagement real success will result from winning both the hearts and minds of future customers.
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● Understanding, communicating with, and winning niche markets will be an area of opportunity for the more creative and innovative. Lifestyle groups have formed through the Internet and use technology to communicate and
discuss. Many have specific language variants using terms and words peculiar to their interest. Effective marketing requires a deep knowledge of their requirements, language, and concerns to customize offers, and this requires new
forms of niche expertise and understanding. Greater numbers are now traveling in pursuit of their special interests.
● Holidays are about rewarding, about luxury and pampering. Work intensity and busy lifestyle have ensured that holiday or leisure breaktakers are “chilling out,” relieving tensions, resting the body and mind through change, getting
into shape to better continue work and lifestyle. People living modern lifestyles are more highly geared they need to change and step down the pressure, but do not take particularly well to a lazy environment they need
engagement, which includes contrasting change, learning, experiencing new things, engaging the senses.
● An Assured Agreeable Climate as Egypt has, will remain a particularly important factor for customers in northern latitudes and for a majority of all leisure travelers.
● Security, environment, and health will remain important issues for travel decision making.
● Friendly people, cultural and leisure clusters, iconic landscapes, preserved and interpreted heritage, and exceptional architecture will remain major advantages of significance, while cuisine, transport, local services will rate higher
than before.
● Holidaytaking habits have always been flexible, responding particularly to family status (age of children, etc.), the educational calendar, seasonal influences, tradition, public holidays, and sector work practices. The market
opportunities are now more comprehensively flexible as holiday taking by youth, single adults, women traveling alone, professionals, and the growing retired cohort are allexpanding.
● Shortstay urban tourism will be a major growth segment for cities with good destination strategies and airline connectivity.
● Customers are more than ever seeking “meaning” and “value” from what they do these are not necessarily related to cost which is quite different futurists think that “Meaning” is the new future “Value”.
● Development is not all about 5* or scale there needs to be a spread. In niche marketing there is a clear demand for “Boutique hotels” and innovative forms of accommodation.
The TDA should consider this in creating plans for areas and allowing for the inclusion of differing
hotel classifications (1* to 3*) and for SME potentials.
● Destinations will seek to develop brands in their own right and that is the way of the future. In the short term this may throw up areas of conflict or confusion with National Brands, but should be worked through,becausethe
destination is the future.
● Destinations require a continual stream of positive publicity and strategic communication that connects them with positive “news”, such as events of scale or importance and the use of destination ambassadors or endorsements by
famous people.
Opening New Markets
In taking up its position as a global player in tourism, a critical part of Egypt’s competency and Best Practice will lie in the opening of new markets countries, segments and niches. This will be an important component of the leadership of
the ETA, the partnership with air carriers, and the ability to motivate the engagement of the private sector.
Egypt will needto attract volume from the mass market, higher yield visitors from segments and niches, a range of age and demographic groups, and some specific targeted groups for destinations and special products and experiences like
heritage, diving, desert, etc.
In terms of the mass market, Egypt’s main competitors will be those countries bordering the northern Mediterranean, particularly Spain, as well as the emerging destinations of North Africa, the Middle East, and Turkey. In terms of
segments and niches, the strategic markets will be EU and Eastern Europe, with growing opportunities in Asia.
Particular targets for Egyptian tourism can be derived from the colder climate Northern countries of Europe (the middle and northern half). The challenge here is to secure air direct flight access links on a scheduled or charter basis.
The BRIC countries of Brazil, Russia, India and China, with their rapidly expanding economies, high populations, rising disposable incomes are a new strategic target, not just for Egypt, but for global tourism interests. Formerly suppressed
as travelers, these populations with their increased freedoms now have a high propensity for international travel and tourism experiences.
Regional tourism has the benefit of close market proximity, as well as the fact that the Middle East has the highest propensity for intracountry short haul travel in the world. Close markets enjoy many advantages for promotion,
especially in this case as they share a common language and are more familiar and less deterred by activities on the ground that may be perceived as adverse by others.
Product and Visitor Experience Development
The product strategy must be directed towards achieving the physical development and quality product combination that will deliver on the strategic objective of making Egypt the major diversified destination of the region. For the
future it is important that all development takes place within the strategic framework for development and not in isolation.
In the case of Egypt, there are now very clear recommendations for a development strategy that would support highgrowth tourism that utilizesstrategic locations for current and future development. This strategic approach is assisted by:
● Creating five defined destinations (clusters) so that the product strength of the tourism sector is
aggregated to create synergy and linkages, rather than being dissipated with the opposite effects;
● Making the best use of the existing assets by connecting them through new themes and in new ways, and byinjecting more innovation in heritage;
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● Changing or modifying certain current plans or processes, so as to achieve a greater alignment with the tourism strategy; and
● Blending the very important ingredients that make up Brand Egypt in a more creative, innovative, and peoplefriendly way.
Privatization of Governmentheld Tourism Assets
It has always proved difficult to achieve quality standards and proper levels of investment in governmentowned properties, which are leased. Except where specific strategic considerations apply, all remaininggovernmentowned tourism
enterprises should be privatized as soon as tourism returns to growth. This includes hotels owned by the Egypt General Company for Tourism and Hotels Asset Management (an agency of the MOI). These properties have the potential to
service highvalue tourists and should be sold. In the limited number of cases where privatization is not possible, then operation/ management should be contracted out to reputable operators on commercial leases requiring specified
operational standards and full repair and renewaltype contracts.
Future Development
● Tourism and Travel will attract a great deal of national, local, and globally mobile investment.
Market and customer considerations will require development to be of high quality, endowed with imagination and features to satisfy traveler needs and please multiple senses and environmental considerations.
● Global competitiveness will be the only benchmark for quality standards and value. Luxury and exceeding customer expectations will be the hallmark of the sustainably successful.
● For hotels and accommodation, the challenge will be to exceed the standards of home comfort and facilities, and to add greater interest and functionality in the restricted architectural space and shape of the rectangular bedroom.
The inherent limitations of this in the toplevel hotel sector (5* and above) has spurred the development of the condominium market, which can better reflect “luxury” requirements and customized variations for services, facilities, and
interior design variations.
● Hotel brands currently target wider markets using internal segmentation to differentiate customer types clubrooms, towers, executive floors, family floors. The increase in travel and tourism for business and leisure will in the
future see more focus on particular markets, rather than the marketing trawl approach. This will best enable hotels to serve these markets and to push up rates of repeat business and hotel or brand loyalty.
● Hotels will offer new services to embed loyalty by customer segments and niches: higher levels of security and reserved floors or areas for women traveling alone; bed comfort and pillow menus, as many have difficulty sleeping or have
allergies; assistance with children bath menus, supervised games areas etc.;specialized meeting or training areas with extras; leisure and health areas with services; libraries, music rooms, and cigar rooms.
The tourism attraction, which depends on a unitary approach, will not in the future meet the higher requirements of the “visitor experience”. Such an experiencewill be predicated on the
●
concept of multilevel entry and multisensory experience in other words, it must be planned for. Only through planning will it be able to deliver to and satisfy target markets that reflect differing ages, educational levels, and
languages, while satisfying multiple senses visual, auditory, tactile, etc. This will require not only planning butupskilling of operational staff.
● Cruising will continue to expandits market and market share, as it has a deep understanding of the needs of its customers and how to satisfy them. It already has multilevel entry and multi sensory experiences, and is unrivalled in
the diversity it offers visitors, combined with ease of travel, quality standards, and many other factors.
● New buildings for tourism have to be environmentally friendly and demonstrate a “green” and sustainable approach. There is a preference for combining and blending architecture as closely as possible with nature. Artificial
contrivances, such as potted plants are retro internal gardens are the preferred direction. The use of natural materials such as stone and wood are welcomed. The use of water can be very effective and the sound of falling water is
soothing to the senses. Lighting is now at the level of a science in terms of design, color, luminosity,all contributing to internal and external ambience. Design, color, furniture, decoration, art, and fabric all play integrated roles of
heightened importance.
● Hotel brands now make “style” a central essence of their brands. This is developing rapidly with great scope for creativity and innovation. There are multiple directions and combinations to choose from, but in the end hotels must now
be showcases of good design, as well as knowing how to blend art, craft, furniture, fabrics and technology.
Safety and Security
Safety and security are major inescapable issues for tourism growth and success of the strategy. The concept of “safety and security” has grown and expanded. Apart from safety of the person, it is now influenced by issues, such as political
instability, flouting of law and order, civil disobedience, acts of terrorism, crime levels against the person and property, particular types of crime, etc. For older age groups and others it includes food security (food handling) and medical
security in case of illness.
Safety and security issues are accentuated for families, for women generally and women traveling alone particularly, and for visitors in older age groups.
This needs to be curtailed and managed. Tourism should be planned to deliver benefits to local
communities, but not in this way, which is a growing deterrent to modern high yield tourism.
The presence of corruption, while not strictly a matter of safety and security, can induce the same negative perceptions.
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Safety and security issues have potentially a major impact on motivation and the holiday or visit decision. Even where motivation is high, any perceived problems in the safety and security areas result in “postponement” for
large numbers of people and where it persists, damage can last for years as perceptions can become reality for many especially if fed by adverse TV images and social media.
While Egypt’s reputation as a safe destination is real and while serious incidents involving tourists are rare, recent TV images and rhetoric have influenced many potential travelers to postpone their trips until greater clarity
prevails. The vast majority of tourists and visitors originate from markets where personal freedom and religious tolerance are cherished. Any diminishment or any change in that, including restrictions, would automatically and
dramatically shrink the potential target markets for Egypt.
Unfortunately a few past events involving attacks on tourists linger. Incidents like shark attacks are damaging to Red Sea tourism and instances like the recent balloon crash, with fatal consequences, raises the specter of improper
operating standards and enforcement. Government must at all times strive to ensure the safety and security of visitors’ persons and property, and, further,to fostera welcoming country and population.
The Egyptian Tourism Police are an important component in the sector and perform a useful if often overlooked service. They have to be brought more into the picture in planning and operation for tourism.
The carnage on Egypt’s roads is a major issue, which must be addressed by Government. Reckless driving, lax or “nonexistent”traffic laws, and poor road conditions contribute to the numerous road crashes which annually involve many
tourists.1 A series of fatal road incidents in recent years has triggered a public outcry over transport safety. To the extent that tourists are frequently victims of spectacular ‘accidents’, which receive widespread media coverage in the
victims’ home countries,the tightening of traffic safety standards and road behavior must remain acause for concern for tourism authorities who have to work with other Ministries and authorities in a planned way to achieve significant
improvement.
The incidence of tourists’ visits being spoiled by infections arising from poor hygiene always needs to be kept under control and to be further improved.
Safety and Security Strategy
Addressing threats to safety and security is a highly skilled communications task, which must rest in MoT, and may require advice and support from specialist consultants. The voice of Egypt has been too muted in the strategic markets
during 2012 and must be upgraded.
To optimize the positive engagement of the population, a tourism awareness program is necessary and warranted to explain to the population the many benefits that they and their country derive from tourism.
Incidents such as the stoning of trains en route to Luxor or the need for coaches to travel in convoy under protection give a very negative impression to visitors, as well as demonstrating that local populations (mainly youth) do not have an
appreciation of tourism. It is, therefore, important that the awareness campaign reach into the communities and schools.
Encouraging responsible community tourism throughout the country and in particular in higher risk areas
will also be beneficial, and this may be encouraged more by the destination strategy now recommended.
Developing a more positive and professional image for the Tourism Police and fostering closer links between its members and the national and local tourism authorities will also be valuable.
To improve road safety, the MOT (or TDA if the function is delegated to it) should explore measures with the Ministry of Transport and the General Authority for Roads, Bridges and Land Transport (GARBLT) to improve highway safety.
Strategy should include making accommodation providers and tour operators more aware of their responsibilities to assure the safety and well being of their clientele.
Action Recommended by the 2008 Strategy
To make tourism more relevant to disadvantaged communities, a high visibility link needs to be established between tourism and tangible benefits for ordinary people. People must be made feel that they have a vested
interest in the continued health of tourism. To this end the following actions are necessary;
Establishment of Tourism Social Fund
This fundwould be seeded from tourism earnings (perhaps EGP50 per head) and applied directly to alleviating hardship in deprived communities. The logic behind such an approach is that since the objective of tourism is to improve the
well being of local people, why not circumvent the obscurity and bureaucratic manipulation and deliver it directly and transparently to those who most need it and in the process help to defuse resentments against tourists.
The fund could help with and support many areas of community need that could be clearly identified
with tourism2, as is done with EUassisted projects.
A review of the procedures for the protection of tourists by the tourism police and security authorities would be beneficial to remove some of the inconsistencies that exist when traveling away from the main tourist areas. For
instance, international tourists traveling in coaches are required to travel in convoy between Luxor and Aswan, and are banned completely from traveling to some towns in Middle Egypt. Yet there is no ban on individual backpackers
traveling to these same areas using public bus services.
1. The approach to improving rail safety, an EU ‘twinning project’ to address rail safety, is shortly to commence. The recommendations arising will need to be implemented as speedily as possible.
2. Rewarding poorer families for keeping girls at school up to the age of 15 might be a further winwin initiative, as it will help to increase capacity within the workforce.
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In Fayoum, the requirement to have an armed security escort accompanying a car of international tourists around the area appears to be totally dependent on which officer is in charge at the checkpoint on the main CairoFayoum Road
and how he interprets the regulations. Clarifying this situation would enable both group and independent travelers to develop itineraries that include new and emerging destinations, as well as established tourism hotspots, allowing
the benefits of tourism to spread more widely.
It is highly desirable also to improve the image and efficiency of the tourism police, and to help them to become a more positive force for tourism. One opportunity is to recruit Bedouins to form special tourism police units to serve in
tourism areas of South Sinai (and other appropriate areas such as Siwa). Their appearance should be striking, impressively dressed (based on traditional Bedouin design), mounted (on camels where appropriate), motivated and highly
trained. In addition to constituting a tourism attraction in its own right and fulfilling regular tourism duties, the involvement of Bedouins in meaningful tasks, such as guarding tourists, should help in fostering the support of local
communities in the fight against terrorism. Similar units could also be formed with Nubians.
Other opportunities include the expansion and extension of the ‘Other Egypt’ tourism initiative of the Italian Ministry of Foreign Affairs and for there to be national support for community tourism to be continuous throughout the period of
the plan, through targeted tourism awareness programs.
Road safety measures could include
● Continuation of the MOT initiatives to improve bus/coach safety by introducing in conjunction with the Egyptian Travel Agents Association (ETAA) “OntheRoad Mobile Testing Units” to inspect vehicles operating in the Tourism
sector (perhaps extending this to include taxis, mini buses, 4x4 safari vehicles);
● Road markings and directions on main tourism roads, if necessary being funded by toll payments;
● Installation of speed cameras operated on a trial basis on main tourism areas, fines being collected
on payment of road registration tax;
● Introduction of global positioning system (GPS) and other technology to monitor behavior of vehicles and buses;
● Safety is also an issue with river cruisers. A review along the lines planned for the railways3 should be undertaken to examine onboard safety procedures, particularly with respect to risks of fire and collision; and
● Inspections of and checks on the quality of accommodation and facilities should extend to checking on the levels of security and health safety measuresextended to clientele.
Human Resource Development
Human resource development in terms of both the quantity of staff and particularly the quality and skills of staff needed to serve the inherent sectors and specialties across the travel and tourism industry is a major issue.
Annex II of this report shows the range of staffing that travel and tourism now requires. In addition to the transitional requirements, new areas have opened up in leisure, fitness, health and wellness, event organization, conferences and
exhibitions, interpretation skills, and engineering and technical maintenance areas. In addition, advance shills are now necessary for success in marketing, cuisine.and service delivery.
The strategy makes it clear that the visitor experience factor is now dominant in producing satisfaction, which reflects in repeat business, positive word of mouth publicity, and enhanced motivation, all of which are critical to growth
tourism success.
HR Development for Employment in Tourism
Training for employment and skills development is clearly a critical part of the strategic solution. To be effective, training must be responsive to the changing requirements of the sector. The ETF has been concerned about shortfalls and
skill gap,s and they recognize the impact of HR and capacity on Egypt’s competitiveness as it builds for future growth. They also recognize that in a “people” business like tourism, developing a qualified workforce with the right set of
aptitudes and attitudes will be essential.
The ETF make six points:
a. The highly competitive nature of global tourism will require Egyptian stakeholders to constantly innovate and improve the country’s tourism products.
b. Given the general increase in the quality of the tourism experience worldwide, Egypt will need improvements in quality at all levels; from the internal transportation system to the maintenance of its archeological sites. Despite its
mix of attractions, Egypt has a low rate of repeat guests; deficient customer service is in part responsible.
c. Further fragmentation of the tourism cluster among niche markets and the provision of a multidimensional experience will reinforce the importance of the current strategic plan for regional diversification and product
diversification.
d. Attracting visitors will become ever more difficult as countries increase their campaigns for
tourism growth.
Egypt will need new skills in market segmentation, advertising, corporate/conference attraction, eMarketing, the Internet, among other areas.
e. Due to privatization, the demand profile for the tourism workforce is shifting. As major international investors move into the market they seek to move Egypt firmly into the high end of business and leisure travel creating
additional competition for prized skills and applying pressure to rapidly upgrade the quality of the workforce.
f. Due to the strategic position of the tourism market in Egypt and its importance to the decentralized local development, more and more emphasis must be given in a participative local development approach.
3. An EU Twinning Project.
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The importance of Human Resources to Egypt‘s strategic growth and success is reflected in the fact that a separate volume of the National Tourism Strategy deals with it. It has also been studied and reported on by the Egyptian
Tourism Federation on behalf of the sector in “Proposals for Egypt’s Tourism Cluster Human Resources Development and Training” in 2012”.
Human Resource development is a critical strategic issue and a competitiveness factor for Egypt. It is proposed that the content of both documents should be considered in the current context, combined and edited to represent concisely
the overall views and solutions of the travel and tourism industry at this time.
SME Development
Tourism has a great capacity to create both employment opportunities and business opportunities. In tourism many of the barriers to entry are comparatively low and do not require major capital. This makes it a significant area for SME
development.
SME’s do not develop naturally they require assistance, incentives, and supports. In many jurisdictions
there is a specific budget and program for developing SME’s, and this is recommended for Egypt.
Annex VI sets out some further information on opportunity and business development, which is very important for a large country like Egypt with a population of 84 million.
Measures adopted to support SME’s and enterprise, in general, are designed to build a culture of enterprise, as well as to motivate and encourage people who have formed enterprise ideas or concepts to test them and deploy them as early as
possible, and to provide a framework of support, as well as networks that will help to boost the establishment and “rooting” of the business ideas. These supports, which can take many forms and combinations, are designed to “bridge” the
challenging setup phase.
Many factors contribute to achieving higher levels of entrepreneurship. Education is one of the most obvious, especially as the 21stcentury has given substance to the socalled “knowledge economy,” “digital economy,” “information economy,”
as well as the massive “services economy” in which tourism sits and in which most people now work. The target of the ultimate confluence of many actions is the creation of an “enterprise culture,” where engaging with enterprise becomes
a pathway of choice for greater numbers of citizen.
The Entrepreneurial Economy:
The optimum approach to the successful development of the economy is best described as “creating an entrepreneurial economy” an economy in which an “entrepreneurial culture” is established, so that a higher proportion of citizens
will engage in enterprise to serve local and export markets. In this or any other scenario in which “entrepreneurship” or “enterprise” is cherished, the government and selected agencies must become catalysts in making it happen. While
entrepreneurship is now a highly studied area, it remains complex and is best seen as a “value chain” or “journey” that covers a lifetime, as engagement can occur at any time during life. However, the greater emphasis is on the early
phases of the cycle/chain and on youth as they approach completion in the education and training system particularly third level students in universities, institutes, and technical colleges. Many people form ideas and concepts
around business ideas at a young age or when still in education. Some will implement their ideas and apply their scarce resources to developing their business concept immediately. Others will wait often for many years, while still
others too often the majority will enter regular employment and be lost for many reasons. There is always a high attrition rate along the way from the ideas/concept stage, to deploying them and bringing them to success this
reality has to be borne with, while schemes and systems are being continuously designed to increase and improve the successful hit rate. The early phase potentials are generally regarded as the most productive, as individuals are
ambitious to carve out a career, as well as being considerably less riskadverse than they will be in later years.
Sustainability Tourism and Energy Use and Conservation
Energy is a critical necessity and an expensive component of operating overhead for tourism, which has a high dependency on energy. ForEgypt in the short term, subsidies are likely to be removed with a consequential upward
movement in pricing.
The most affected will be airlines as users of aviation fuel and hotels as users of electricity. The strategy strongly encourages energy efficiencies and the conservation of all scarce resources. Tourism developments are encouraged to
move towards energy conservation, the use of renewable like solar power, and, where possible, to move towards self sufficiency or clean energy alternatives.
The web site www.hotelenergysolutions.neti
s a UNWTO project especially mandated to assist hotels and businesses in the tourism area to become energy efficient. Also useful is the web sitewww. carbontrust.com, which provides
advice for business and hotels as well as explaining efficient and effective systems.
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Energy Audits
These professional audits are carried out by specialist companies. The objective is to enhance efficiency, reduce cost, and actively manage energy use. New technologies and systems are now available for energy management. Apart from the
technologies, a significant number of options are available for consideration including the following:
Table 9
Water Use and Water Conservation
Hotels are significant users of sweet water. Many hotels have “green” or “conservation” policies with cards in bedrooms urging and encouraging guests to conserve water and reduce laundry requirements. The strategy recommends that
these become the universal norm in Egypt. All new hotels should be required by regulation to install dual flush or “interflush” toilets. Most hotels still provide baths, which are inefficient in the use of water. Most modern guests use
showers or wet rooms for washing. It is important to install efficient water saving or aerating shower heads. The web site www.waterwise. orgprovides a range of useful advice for using watermore efficiently.
Key card operation in bedrooms Remove all remaining incandescent
bulbs and replace with long life energy
efficient CFL and LED bulbs
Use of special glass in new premises
or glass coatings in existing premises to exclude infra red light which causes heat and ultra violet light which causes
It is important to insulate pipes carrying hot water throughout the hotel as heat loss from pipes can be over 35%.
The use of off peak energy at night to fill
roof top tanks
These last 3050 times longer and use
up to 90% less energy for the same light
fading of fabrics
Use boilers with high AFEU ratings to heat water and fit with automatic sensors to manage hot water use load
Use condensing boilers where appropriate
Radio and environment controlled thermostats
Lagging of hot water pipes and storage
heat loss is higher than 35% in un lagged systems
The use of white blinds to reflect infra
red and ultra violet light
Use high efficiency absorption heat
pumps where appropriate
Key Strategic Actions to Be Taken to Support Growth and Effectiveness
Immediate Actions to Aid Tactical Recovery for 20132014
Table 10
Use of light systems at night which are controlled by PIR’s or sensors which
Use of Solar Energy and Renewable Energy
The strategy recommends that all new hotels should be required by regulation to provide and fit solar energy panels and systems as part of energy reduction policies. These can be used for lighting, water heating, air conditioning,
etc.Existing hotels should be encouraged and even incentivized to install solar energy solutions for part of their energy requiems.
Hotels and tourism attractions in suitable locations may have options for wind energy, hydro generation, heat pumps, or ground heat applications. Energy from marine tidal sources is under development, but not yet commercially available.
When planning for new development
theTDA should:
● Provide land in the hinterland of tourism centers and clusters, so that investors can develop solar, wind, and plant energy sources as an integral part of planning for sustainability.
● If necessary, pumpprime or incentivize such developments.
● Require new resorts and similar developments to have at least partialsolar energy capacity and to gainsome of its energy from renewal sources.
Execute all the areas set
out under the five themes in Annex 1in a planned and task forced way
MoT As set out in the Document in
Annex 1
These actions are designed
to influence 2013 and secure
2014
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Creating the Structure and Institutional Framework to Support Growth Tourism
Table 11
Developing the Product and Visitor Experience to Support Growth Tourism
Table 12
Minister of Tourism to be member of Economic Sub Group of Cabinet
Prime Minister Recognition of role played by tourism in the economy.
Recognition of barrier issues and empowerment needs
Technical support needed to prepare solution focused papers on tourism as necessary
Comprehensive plan needed for the Pyramids of Giza
The world’s most iconic structures are far below potential
MoT and MoA This should be and must be a super world class visitor
experience.
It is far short of this
This major attraction must be organized effectively
to show that Egypt is serious about its heritage and visitor experience development
Formation of Tourism Group of Ministers whose responsibilities impact on growth tourism
Prime Minister and
Minister for Tourism
Following Ministers
Tourism Civil Aviation Interior Culture Antiquities Environment
Committee would in effect be the Supreme Council for Tourism
Committee needs a range of technical support from ENCC
Establish Technical group with MoCA
Focus on the five
destination areas
MoT and MoCA To enhance the visitor experience in aviation and
airport arrival
MoT and TDA Plan for each TDA with clear priorities
Anchor project needed in
Already established and meeting
The five areas must be differentiated and diversified
Minister for Tourism to chair joint meetings of CEO and Chair of ETB & TDA with ETF quarterly
Minister for Tourism To align marketing and development objectives and
to coordinate priorities
Working group needs support and follow up
Initiate a system of visitor profiling to understand the needs of markets and
each area
TDA to initiate with ETB Detailed profiles showing
visitor motivations, needs, requirements and
Technical support needed from ENCC
Establish structures that will support and develop “Partnership” between the private sector of tourism and MoT, ETB and TDA
Establish internal Structures for Tourism Development
MoT, ETB and TDA have active parts to play as has the ETF on behalf of the tourism sector
Minister for Tourism and
Governates
To align all the energies of tourism in a result driven partnership in which the stakeholders plan, agree, invest and work together to attain this strategic result and other agreed goals
To provide for the development of the 5 destinations
It takes time to establish true partnership.
Support may be needed from ENCC.
Partnership must operate across the range of tourism activities such as marketing, development, education, etc.
visitors
Carry out a product market matching exercise
Examine the potential of the AlexandriaPyramids railway to make Alexandria a major port of call for
cruise business
Major improvement required in leveraging
expectations
TDA Determine how current products match with
markets
MoT, MoTransport Examination of current state of line and costs
Discussions with cruise line comps.
Consider privatization
MoT, MoA, MoC This area needs innovation
Technical support needed from ENCC
Could have a major impact on Alexandria and Mediterranean Coast
Heritage is performing below its potential for
Examine the effectiveness
of ETB offices overseas
Minister for Tourism To ensure effective market
level representation
Consider costs and
effectiveness against a system of market based reps as an alternative
heritage patrimony
Develop eco and green projects in Siwa and
Select immediate pilot
projects
TDA Project should match best practice with innovation
Egypt
Part of the diversification
program
Structure the marketing
and communication divisions to meet the changed requirements of
21st Century
Minister for Tourism with
Chair and CEO of ETB
To ensure that Egypt is
competitive in these key areas
Emphasis on branding,
emarketing, social media and communication
Western Desert
Review the structures for investment to ensure that the search for FDI in Tourism is effective and competitive
MoT and MoI With TDA
Paper needed on how tourism investment is promoted and whether it is effective and competitive
to achieve the growth ambitions
Support from ENCC may be needed
Adopt the tourism diamond and tourism platform approach to developing tourism
MoT with ETB and TDA Adopt as a methodology and discipline for growth
Support from ENCC may be required.
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Marketing to achieve Growth Tourism
Table 13
Actions to Ensure Competitiveness and Quality
Table No 14
Action Responsibility Content Required Comment Action Responsibility Content Required Comment
The capability of human resources is at the heart of every successful tourism destination. Training and capacity building must mirror international best practice and must work across the entire sector from service delivery to management.
A feature of tourism, as in other modern economy industries, is that
retraining and upskilling must be a core part of human resource development planning.
Actions to Ensure Sustainability and Best Practice in Other Areas
Table 15
Introduce energy audits for hotels and tourism attractions
MoT and MoEnergy Develop providers to supply this service
Energy conservation is a cost positive measure
Assistance from ENCC may be needed
Require new hotels and tourism attractions to build in solar energy solutions for water heating, lighting and cooling
MoT and MoEnergy and
MoEnvironment
New regulation enshrined in law
Will help build Egypt’s reputation for low carbon approach
Encourage innovation in product development, presentation, visitor experience and tourism attractions
Innovation needed for Best
Practice
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Actions to Ensure Positive Social Impacts
Table 16
Action Responsibility Content Required Comment
Annex I
Immediate Priorities for Action:
As set out in the Introduction to Current Context at the front of this report, Egypt’s immediate situation requires a twin track approach.
Creation of 5 destination
areas will assist distribution of tourism economy and release more local energy
Organize the educational and training facilities to support local youth training for tourism
TDA to provide training schools in appropriate destination and cluster areas, and ensure operation to high standards and with local communities
MoT and Governates Each Destination to
produce its own destination strategy in conjunction with local business and community interests
MoT and MoEducation Significant task to be
undertaken
TDA This is being done.
TDA to ensure that local communities get priority
Should get underway by
mid 2013
Required a cross Ministerial Committee to steer and integrate action
Schools could in time offer support to SME development
Track 1, which will deal with current challenges, would be in the format of an intensive high impact action plan to repair and strengthen Egypt’s presence, voice, and reach in the global sales and distribution networks.
The tactical priority should be to mobilize the energy, creativity, and resources of the public and private sectors working in partnership and collaboration under unified authority of the Minister for Tourism under the working title
“Tourism Growth Task Force”.
The Task Force, as recommended, represents the mobilization of the energies and commitment of the entire tourism sector and those who depend on tourism success to operate for an agreed period of at least a year in a planned and
integrated way under the leadership of the Minister for Tourism. The driving
Hotels, restaurants and other appropriate tourism businesses to be encouraged to link with local producers of food, goods and services in a visible way.
MoT to lead
Destinations to make provision for
Linkage program needed
Test as pilot in selected businesses and destination areas
Technical support may be necessary for some pilot test projects
Helps to link tourism to other local sectors
mantra is that “failure to grow tourism is not an option for Egypt.”
The Tourism Growth Task force would be directed by a small group of people: Minister for Tourism, Minister for Civil Aviation, Chairman and CEO of ETB/TDA, and Chairman and CEO of ETF. The Task force would be managed by the
CEO of ETB or some agreedupon person.
Within the Track 1 document theme Returning Egypt to Sustainable Growth the following and other themes and activities would be developed into specific actions with responsibility for delivery allocated appropriately:
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Table 17
Strategic Communication Dealing with the perception and political issues
Needs high skill sets
Communication and PR
Normal Communication and PR
Planned International
Media Visits
Dealing with normal communication
Get travel media down to Egypt hosted planned visits
Upping the volume and quality of communication
to the many audiences that must be addressed
Minimum number of media each week at least 10
Niche Marketing
Theme Activity Action Comment
Adventure Groups To boost Siwa, Environmental and Desert
Social Media Boosting the use of social media in creative and
innovative ways
Web Cams Web Cams linked to multiple sites
Ambassadors Program Getting famous Egyptians to speak out and promote
Egypt
High skill sets necessary to ensure success smart marketing
To show normality of life
Boosting activity
Resortbased Tourism For Sharm and Hurghada
Marketing Contact with all major Tour
Operators traditionally serving Egypt
Variety of contacts with key tour operators and markets to reassure and tie down future business
High level contacts and visits in selected cases
Egyptian Diaspora
Organizations
Tourist information and
Get Egyptian overseas to organizations activities to support Egypt’s effort
Making sure that all web
This could be a most valuable source of market level activity
Very necessary work
Marketing
Market Task Force(s) For selected markets (34)
Airline Activity New Market routes advance work
Brazil under consideration
booking functionality
sites have the correct accurate information on current situation
make sure booking functionality up to scratch
Direct Marketing with
offers in close regional markets
Supplements with regional
media
Offers must be priced for
effectiveness
Marketing and Promotional
Networks Ensuring Egypt is represented in all
appropriate networks
Very necessary work must be direct contact with persons managing
Direct Marketing to
Regional ExPats
Direct Mail and web marketing
Offers must be priced
Support
Special attention to the networks of branded hotel groups
Selected Direct Marketing Direct marketing in selected close markets
networks special Egypt promotions to be sought.
Local brands play a key part
These would contain direct bookable offers
Paid Advertising Support
Advertising Selective activity to support
and underpin promotional and sales effort
Joint advertising and mailing with selected tour operators
Only selected advertising
would be undertaken where impact will support market level activity
Focused and effective
Air Carrier activity Special focus on airlines serving Egypt
Many airlines can take direct action with their customer networks and data bases
Google and Expedia schemes likely
Best timed for booking season
Special Promotions Special priced offers to selected target markets
These would be used selectively in special circumstances
Annex II
Job Opportunities in Hospitality, Tourism and Related Services:
The World Tourism Organization subdivides the industry under twelve headings and these headings have been adopted for the purpose of this analysis. Due to different interpretations of what constitutes the duties of the jobs listed, the list
is not exhaustive.
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Table 18
1. Hotels and Similar
Executive level
Food Production Senior Chefs
Assistant Chefs
Butchers
Bakers/Pastry Cooks
General Manager Chief Steward
Resident Manager Kitchen Stewards
Rooms Division Manager Dish Washers
Food and Beverage Manager Pot Washers/ Kitchen Cleaners
Executive Chef Purchasing Officers
Chief Accountant Storekeepers
Chief Controller Chief Engineer Executive Secretary
Reception and General Office Head Receptionist Receptionists Reservation Clerks Cashiers Telephonists
Night Auditor Control/Accounting Clerks Guest Relations Officers Sales and Marketing Computer Technician Personnel and Training Secretaries
Room Division Head Housekeeper Assistant Housekeeper Night Supervisor
Floor supervisors Room Attendants Linen Keeper
Linen Room Attendants
Seamstress
Laundry Supervisor Laundry Operatives Pressers and Finishers Housemen
General Cleaners
Maintenance Electrical Engineer Refrigeration Engineer Water and Sanitation Carpenters
Painters and Decorators
Safety Officer
Ground Maintenance (Gardeners)
Miscellaneous Hairdressers
Beauticians
Spa Attendants Fitness Instructors Pool Attendants Shop Assistants
Tour Desk Sales personnel Entertainment Coordinators Entertainers
Convention/ Conference Organizers
Security Security Officer
Security Guards
F & B Service Restaurant Supervisor Banqueting Supervisor Dining Room Host Dining Room Captains Station Waiters Assistant Waiters Banquet Waiters
Room Service order takers Room Service Waiters Cashiers
Concierge Head Concierge Bell Captains Porters
Night Porters
Doormen
2. Second Home Ownership (imputed) Not applicable
3. Restaurants and Similar
Food Production Senior Chefs (Section specialists) Assistant Cooks
Baker/ Pastry Cook Chief Steward Cleaners
Dish Washers Pot Washers Cleaners Storekeepers
Service Restaurant Supervisor
Seating Host Service Waiters Counter Staff Cashiers
4.Road Passenger Transport
Taxi Drivers
Tour/airport transfer coach drivers.
5. Water Passenger Transport.
Sea Captain
Crew
Dock Hands
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6. Air Passenger Transport
Sales Ticketing Checkin Staff
Baggage Handlers
Cabin Crew
Air Crew
Cleaning Services
Catering Services (See Hotel Kitchen) Aircraft Maintenance
(Aviation Authority) Security Services
10. Cultural Services
Museum Curators Information Officers/Guides Preservation Specialists Ticket Sales/Cashiers Security Staff
Cleaning Services
Cultural Attractions Manager
Natural Park Rangers
Site Guides
Diplomatic Services Immigration Officers Customs Inspectors Traffic Controllers Baggage Handlers Coach Drivers Ground Handlers Ground Maintenance Fire services
Building Maintenance
Refrigeration Engineers
Electric and Mechanical Engineers
7. Passenger Transport Supporting Services
Maintenance mechanics Cleaning service workers Drivers
8. Passenger Transport Equipment Rental
Agency Manager Reservation Clerks Customer Services Cashiers/Accountants Dispatchers
Cleaning Services
Tourism Management Director of Tourism
(National Level) Chief of Marketing
Agency Manager Chief of Planning and Development
Head of Ticketing Marketing and Promotion Specialists
Head of Tour Programs Tourism Statisticians
Chief Accountant Tourism Facilities Standards Specialists
Sales Manager Human Resource Development Specialist
Ticketing Clerks Trainers, Instructors and Lecturers (Minister of Education)
Tour Leaders Tourism Information Officers
Tour Guides Environmental Protection Officers
Cashiers National Park Managers
Airport Transfer Facilitators Park Rangers
Marketing and Promotion Guides
Maintenance mechanics
9. Travel Agencies and Similar
11. Sporting and Other Recreational Services
Park/Club Managers Administration Officers Personnel and Training Officer
Secretarial and Clerical Support Staff
Life Guards Maintenance Engineers Refrigeration/AC Engineers Water and Sanitary Technicians Sports Coaches
Fitness Instructors Medical Support/First Aid Services
Animators
12. Sporting and Other Recreational Services
12. Sporting and Other Recreational Services. Entertainers
Sales Assistants (Kiosks) Ticket Sales
Theme park hosts Ride supervisors Safety Inspectors Security Personnel Marketing
Cleaning Service Operatives Groundsmen (Gardeners) Car Park Attendants
Catering Services (See 3 above). Restaurants and Similar)
Tourism Management Services based on WTO chart
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Annex III Advocacy for Tourism
The National Benefits of Tourism
Tourism, when properly planned and managed, has a powerful capacity to deliver benefits that include the economic, cultural, environmental and social themes, as well as the enhancement of the international image of Egypt which helps
investment.
Tourism is an ideal economic stimulant it brings the immediacy of hard foreign currency into the local economy and distributes it widely. When properly organized, most requirements for tourism can be met locally or domestically,
resulting in the minimization of leakages while delivering a group of valuable benefits as shown below:
● Economic benefits derive from the opportunities created by growth in tourism for economic engagement in employment and opportunity, enhanced personal and public incomes, which translate into employment creation, government
revenues and incomeand increased public services. Tourism can also be a key contributor to foreign earnings generation and the national balance of payments.
● Cultural benefits include improved preservation and presentation of the nation’s heritage and
culture to be enjoyed by citizens, visitors, and future generations.
● Environment benefits arise from the concerns of tourism to protect unique landscapes including flora, fauna, and habitats for local people to enjoy, as well as cherishing green and healthgiving ecoapproaches, such as general
cleanliness, clean water, and the absence of pollution.
● At the social level, benefits arise for individuals, families, and communities through the income and opportunity that tourism creates and distributes widely throughout Egypt. People can also enjoy the many facilities provided
through tourism. Tourism helps to stem emigration it empowers people with the necessary education and training to find work in Egypt. Tourism can also boost the opportunities for participation in the work force by females,
thereby extending the role of females in society.
● The image of Egypt can be enhanced through tourism, which works in a seamless way with other critical elements of the economy. Foreign investors rely on tourism for their first experiences of Egypt, and they
and their workers rely subsequently on the facilities created by tourism to enhance the lifestyle of their workers. Tourism numbers and travel by tourism types who acquire residential property for holiday or residential
purposes are vital factors in leveraging international air connectivity, which benefits the entire economy and country.
Why Building the Tourism Economy is a Top Priority for Egypt
The reasons for developing the tourism economy or for accelerating its growth are compelling and relevant for Egypt. In 2010 the tourism economy represented 11.2% of the national economy. Tourism and travel is one of the world’s largest
industries, and is set for strong future growth particularly in the MiddleEast region making it a sector that merits serious consideration for its potentials to contribute to economic and social development.
If public policy makers had to describe their ideal economic stimulant, tourism would fit that definition better than most other options. However, this may have to be advocated to government and policy makers by ENCC, as the strength of
the evidence may not be immediately apparent to all.
● Tourism is more effective than industrial exports in getting money directly into the economy quickly and distributing it widely.
● Tourism is an intensive direct and indirect employment creator. It requires a wide range of staff, professional, specialist, managerial, executive, clerical, craft, manual see Annex II.
● Tourism has the lowest cost per new sustainable job in the modern economy.
● With good planning and investment in marketing, employment in tourism is stable and sustainable.
Unlike other sectors, it cannot be reduced through technology or capital investment.
● Tourism benefits follow quickly on capital, operational and marketing investment.
● It is an excellent positive contributor to the balance of payments through its capacity to earn hard currencies and foreign revenue.
● Tourism has substantial potential to contribute to government revenues through taxation and charges.
● Tourism is effective as an instrument of regional policy as it can bring benefits to areas without
industrial options or where industry would be unacceptable in an environmental context.
● Tourism supports the development of the local economy through requirements for food, transport, and local services, etc.
● It supports social development as all facilities (cultural, leisure, recreational, etc.) required for tourism can be used by locals.
● It supports the mission of attracting cuttingedge industry and inward investment, as the key workers in all these sectors requires the diversity of leisure, recreational, and cultural products provided through tourism.
● Tourism can support and contribute to the creation of a positive national image internationally.
● Tourism supports enhancedaccess transport and air connectivity, which are vital for economic development and exports.
Annex IV
Modern Tourism Operational Environment:
Tourism operates within an intensively competitive global market environment where marketing and promotional costs are universally high, top skills are required, and an integrated approach can add leverage and value in strengthening
competitiveness.
The abilities to compete successfully in this environment depend on local capacities, capabilities, and resources. Tourism is a unique service sector. To be effective and competitive, it requires the ability to act nationally
to lead, plan for, and organize the sector, to act internationally in mining and winning the markets/
customers for tourism and in establishing the image and brand of Egypt. It also needs to be able to reach down to the local level, as all tourism at the point of delivery is intensely local.
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Given acceptable levels of security, health and safety, and services, the essential requirements and functionality of an effective tourism sector within the economy include the following:
● Government the vertical responsibilities of government are not suited to an area with wide boundaries and multiple sector complexity like tourism. The organizational contribution of government is enhanced through the
establishment of “Cabinet Sub Grouping” or “Supreme Committees” as actioned and proposed.
● Governance, Control and Direction government plays an important role in creating the environment for tourism, but in modern Best Practice moves decisively towards public private sector partnership and establishes
structures that support and facilitate engagement, consultation and collaboration with the private sector in relation to issues like air access, entry regime, the Legal framework, strategy, policy, planning, monitoring, public funding,
regulatory environment, licensing, enterprise environment, bilateral agreements. Tourism law should reflect and support the strategy and should keep pace with the development and use of technology and on line bookings and
payments etc.
● Connectivity all the infrastructures (air, sea, road), entry regime, connectivity, air and cruise infrastructure. Air access is opening, but still restrictive at Cairo Airport and until recently Egypt has not been a mover in the regional
battle to create East West hubs in the Middle East. Egypt should now be a mover in establishing a hub for Africa and its links to Europe. The entry regime is acceptable and has been improved for tourism with visa on arrival for many
source market countries.
● Product Products and services provided by the private sector, such as hotels and restaurants meet international standards those provided by the public sector lag and must be improved.
● Marketing Domestic and international marketing, promotion and research the ETB as the lead public sector institution requires all the capabilities to compete directly with other top destinations. In the 21stcentury there has been
a transfer of marketing effectiveness and leverage to marketing actions based on the technologies and social media, which is good news as they are more affordable than traditional methods, but for global competitiveness, special
levels of technical knowledge and experience are required. The most advanced tourism countries plan to create a marketlevel advantage in technologies, social media, and equipping of the private sector in order to take direct
independent action to gain sales.
● Product Quality Quality has become a critical success issue for 21stcentury irrespective of the classification level of product offered. A 1* or 2* product has to have the appropriate inherent quality and value as does 5* at its
level.
● Human Resource Development An expanding tourism has a capability of creating a rich diversity of employment and SME opportunities for Egyptians. A comprehensive approach is necessary to work across the entire educational
and training spectrum for tourism and from policy and legal development through to schools, classrooms, text books, curriculum development, and linkages.
● Regional Development The new refreshed strategy recommends clear provision of regional, local, and community development. Following agreement on the strategy, important initiatives will fall to the selected five regional
destinations/clusters to create their own destination strategy with a mix of localized priorities.
● Tourism Servicing postarrival information provision, complaint handling, etc. This has been an area of weakness, which falls between responsibilities in the public sectors.
Annex V
Tourism Competitiveness Framework and Measurement
● National competitiveness is a key element in the business environment. Where it is achieved,it supports business and opportunity creation, employment creation, and economic and sectoral growth. Whereit is not achieved, it slows or
diminishes growth to various levels of severity. Competitiveness is a core issue for tourism and for every individual business.
● Sectors and businesses can only be competitive within what they themselves control. National governments have a much wider span of issues to consider, and the policies of government directly affect competitiveness in a positive or
negative way.
● Export Tourism is dynamic, global, and networked for all countries and destinations. Consequently, all countries and businesses must consider their tourism competitiveness in a global context.
Sustainable growth in tourism without competitiveness is impossible.
● Because of the rapid dynamics of tourism competitiveness, concerns are constantly present, and the shelf life of competitiveness is shortening all the time. Positive elements of competitiveness become devalued over time, as well as by
changing circumstances, so it needs constant management. While Egypt is becoming more competitive, so are its competitors. So the bar is moving ever upwards, as customer needs and expectations are evolving all the time.
● A key method to advancing competitiveness is the creation and effective working of public private partnerships. Since the private sector is the engine of economic growth and the sharp end of the spear of competitiveness,
government policies need to be well coordinated to provide effective support.
● Egypt is a good case in point creating the ENCC was a brilliant initiative, but it will only work if the government acts on its recommendations and provide it with powerful links to the national planning mechanisms.
● A number of bodies (e.g., World Bank, WEF, OECD, Frazier Institute) collect competitiveness and other statistical information. The science and methodologies have developed and they are better and more reliable than before.
Where the information is derived from surveys, it is more dependable, and where national information is tested against benchmarks, then the quality also rises.
● In the tourism sector, the general practice reflects a conservative view on daily expenditures, which tends to give a low figure for the value of the tourism economy. Tourism satellite accounting has been adopted by Egypt and represents
the state of the art. The challenge is to find sets of indicators that will give as true a picture as possible. From an operational management point of view, decision makers want immediate indicators these tend to be around gross numbers,
i.e., numbers of visitors arriving at borders, bed nights in hotels, load factors on planes, etc., the most important indicators not being immediately accessible. Those indicators are qualitative expenditure by visitors, Rev Par numbers from
hotels, etc. They generally come 6 to 12 months later.
● Competitiveness can be defined narrowly or broadly. In the narrow sense, competitiveness normally considers issues like access transport, car hire, accommodation, meals, site visit charges, and a selection of services. It is
recommended that the framework also assess tourism packages: they are easy to obtain through desk research and therefore accurate.
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Factors Methods
competitiveness planning and help ensure sustainability.
● A two pronged approach or framework serving both tactical and strategic needs is recommended.
This is because different timescales apply, with an annual or biannual requirementto test market level competitiveness, but a longer time span is acceptable for strategic competitiveness.
● The challenge of competitiveness is a continuing one. The key question is, once Egypt is seen
Investing in Education and Training at all levels, but being particularly innovative at third level.
Leading and encouraging widespread investment in research and development
The quality and relevance of the education system to the needs of the modern economy and society is a proven acorn investment.
This helps critical third level educational objectives, as well as keeping companies and service providers at cutting edge. It also facilitates business and universities to work together and engage on research projects.
as uncompetitive in selected areas, who takes responsibility to restore competitiveness? In theory, the government is expected to provide leadership, but new participatory structures linked toeconomic and social planning are needed.
It is recommended by the strategy that this be an issue for partnership implementation.
Early intervention Grants and assistance for business plan development.
Campus companies. Incubation units.
Bridging to enterprise schemes. Access to research.
Knowledge sharing networks.
Annex VI
Removing, lessening, or side stepping the known barrier issues
Free Zones sidestepping laws, import charges etc. Enterprise Zones lessening barrier issues.
Clusters grouping industries with special requirements and needing special hard or soft infrastructures.
SME and Enterprise Supports
One of the key determining factors in enterprise startups occurs at the beginning in terms of testing the idea/concept through a business plan that professionally scrutinizesthe concept, any legal issues, market size and requirements,
competitors, costs, profit margins, and,in particular, financial projections. There is an inherent high failure rate, which is more likely to be higher when ideas/concepts are not properly and realistically tested before deployment and
implementation.
The classic approach to enterprise support is the “risk sharing” model, which seeks to structure the supports so that they lessen the barrier issues without removing them entirely.
Sharing the risks. Financial incentives.
Favorable taxation regime.
Loan schemes guaranteed loans, etc. Easy set up of companies.
Research assistance. Export guarantees. Advance factory premises.
Providing incentives and practical help Capital Grants for premises and equipment.
Training grants or assistance. Import substitution schemes. Partnership networks. Mentoring.
Internships.
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Annex VII
Tourism An Economic Platform:
The Tourism Platform Concept shows how the inputs into the tourism sector can with proper planning result in many valuable outputs supporting the many dimensions of tourism, as well as many other sectors, such as food production
(agriculture), beverage, retail, transport, local services, and craft.
Chart No. 5
Annex VIII
SWOT and PEST Analysis Egyptian Tourism
SWOT and PEST analyses are assessment tools that are useful in identifying specific elements for strategic consideration or implementation action. In the case of Egypt the principal core issue is how the massive national potentials and
strengths for tourism can be realized as well as howpriorities for action can be identified.
The market for growth tourism is present, but all the capabilities to realize it are not. Egypt has a high recall factor and distinctiveness, which provides the basis for it being a “must visit” and “repeat visit”
Air and Sea
Carriers
Transport
Infrastructure
Leisure, Events
& MICE
Specialized
Tourism
Regional & Local Development
Employment
Creation
Entertainment
Activities & Attractions
Restaurants & Food services
Accommodation
& Hotels
destination for a huge multisegment market. However, the realization of that market depends on the strategiccapabilities discussed in this document being perfected. In addition, the management of the dynamics and media which impact
current motivation and destination choice must also be perfected. The positive management of these dynamics remains the greatest challenge for all countries seeking sustainable growth in the tourism economy.
Table 20
Strengths Weaknesses
Marketing
Capabilities
Nature & Heritage Assets
Business Environment For tourism
HR Assets & Capacity
Investment in Products & Infrastructure
● Cruising
● Location and Scale (Africa/Europe/Asia junction ● Institutional Framework
Transport Other Foreign Revenue Tourism Tourism population of 80+ Million) ● Air Carrier Network and Connectivity Index
● Established Destination ● Lack of a Specific Plan to Synergize the efforts of the
Services Services Earnings Services Enterprises
● Climate Public and Private Sectors
● High Global Recall ● HR Development for the Sector
● Unique and Distinctive Culture ● Lack of Clarity in the Brand and Value Proposition
● Iconic Heritage ● Investment Climate
● Extensive Labor Force ● Gaps in Marketing Capabilities
● Price Competitiveness ● Reduction in Funds for Marketing
Tourism, Travel & Hospitality ● Airport Network ● Reputation for Friendliness and Welcome being
● Excellent Coastal and Marine Assets Damaged
Sector Platform
● Insufficient Global Marketing Reach and Networks
● Insufficient Market Research
● Infrastructure Weak in Places
● Seasonality
● Quality Attainment
● Food handling
Opportunities Threats
Tourism Management Services
● Enhanced Internal Distribution of Tourism
● Community Engagement
● Legal Reform
● Diversification and New Product Development
● PublicPrivate Sector Partnership
● HR Capacity Enhancement
● New Markets
● Niche Marketing
● Use of Technology in Marketing, Product and
Experience Development
● Use of Social Media
● Political Uncertainty
● Social Unrest
● Breakdown in Law and Order
● Budget Reductions
● Damage to Image and Brand
● Cost Increases
● Rationing of Resources
● Vulnerability to Action by Competitors
● Traffic Chaos
● Environmental Protection
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PEST Analysis of Egyptian Tourism
Political Economic
● Security Issues ● Weak economy
● Weak Government Clarity on Tourism ● Monetary issues
● Legislation Deficiencies ● Restricted Access to Hard Currency
● Protectionism ● Removal of Subsidies
● Regulatory Bodies and Processes ● Increase in Taxes
● Lack of Synergy in Government Policies ● Exchange Rate
● Fiscal and Currency Weakness
● Domestic Conflicts
●
Pressure Groups
Social Technological
● Young Demographics ● Weak Global Communications Capability
● Unemployment Levels ● Inadequate Web Presence
● Religious factors ● Inadequate Technology Access
● Negative International Media Views ● Information and Communications Networks
● Legal Changes Affecting Social Factors ● Technology Legislation
● Emigration ● Low Levels of Innovation
●
Ethical Issues
Table 21
Conclusion
The New Refreshed Tourism Strategy has been developed by ENCC at the invitation of
H.E. The Minister for Tourism.
ENCC acknowledges the partnership of the Egypt Competitiveness Project which is funded by USAID
The full strategy will consist of three volumes to be launched at the Annual Meeting of the ENCC on June 25th.
ENCC will continue to advocate for the development of growth tourism designed to benefit the people of Egypt and help attain social inclusion and social equity. They have recommended this strategy to
government and to the private sector as one that can guide Egypt in reaching its full potential as a global power in international tourism.
PEST Political, Economic, Social, and Technological factors affecting the Tourism Sector
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