Eid El-Fitr and Tourism: A Celebration Amid Economic Turbulence
Updated 4/1/2025 9:00:00 AMEid El-Fitr marks the end of Ramadan, bringing family gatherings, traditional festive treats like Kahk, public celebrations, and the traditional practice of giving Eidyah to children.
Beyond its cultural significance, this festive season greatly impacts the Egyptian economy, particularly tourism. The extended public holiday triggers a surge in travel to popular local destinations. However, economic challenges and the devaluation of the Egyptian pound are reshaping domestic travel in Egypt.
Yet, Egypt's tourism sector is adapting to these dynamics through targeted campaigns and the country’s appeal to regional and international tourists. This evolving landscape underscores the interplay between economic conditions and tourism trends, highlighting both challenges and opportunities for Egypt during this festive season.
Impact on Domestic Tourism
The Eid El-Fitr holiday has traditionally been a peak season for domestic travel in Egypt, with families traveling for leisure and reunions. However, economic headwinds have noticeably impacted Egyptian families’ engagement in domestic tourism in recent years.
Ibrahim Hamdy Sheta, holder of PhD in Applied Economics from Western Michigan University, USA and Assistant Professor of Economics at Faculty of Commerce, Mansoura University, and College of Business Administration, Taibah University in Saudi Arabia, explains: "Unfortunately, the continuous decrease in the Egyptian pound exchange rate against the US dollar (since November 3rd, 2016) resulted in a continuous rise in the inflation rate, coupled with a high unemployment rate (stagflation). Both resulting in increasing the poverty rate, and eroding the middle class.”
“A normal Egyptian family's spending has a significant percentage increase on essential life needs such as food, healthcare, education, transportation, housing, etc. In parallel with that, there is a significant decrease in the Egyptian families' percentage spending on leisure activities, including domestic tourism, especially during national and religious holidays such as Eid El-Fitr, Eid El-Adha, or Sham El-Nessim, as well as on seasonal tourism activities such as summer resorts, particularly those of the middle-class resorts such as Ras El Bar, Damietta, Port Said, Alexandria,” Sheta notes.
This highlights a crucial link between macroeconomic factors and household spending patterns. Inflationary pressures and currency fluctuations have prioritized essential expenditures, leaving less disposable income for discretionary activities like domestic travel during Eid.
Sheta further points out that “in previous years (since the first applying of the floating exchange rate policy on November 3rd, 2016), Egyptian remittances (by Egyptians working abroad) used to partially compensate for this decrease in spending on domestic tourism. However, now, the Central Bank of Egypt (CBE) is actually applying the managed floating exchange rate policy ($1 = around EGP 50) while the inflation rate continues to rise.”
“Therefore, Egyptians working abroad had been involved in the struggling cycle with inflation, typically as Egyptians domestically working. Given all of these analytical facts and results, we can conclude that: there is a significant decrease in the Egyptians' spending on domestic tourism, whether during national or religious holidays or along the whole year,” he says.
In contrast to this analysis of economic constraints, Abdel Haris Abu Zaid, a tour operator, shares a different perspective with Arab Finance: "Domestic tourism during Eid in 2024 increased by 50%. Travel destinations depend on the season, so if Eid falls in winter, Egyptians prefer Luxor and Aswan, where Nile cruises are fully booked. Sharm El Sheikh, Hurghada, and Dahab are also popular."
The reported increase suggests a potential dichotomy within the domestic tourism market, where some segments are still able and willing to travel during Eid, particularly to popular destinations.
Impact on Arab/Regional Tourism
Egypt stands out as an attractive tourism destination for regional tourists, not only during Eid vacations but throughout the year. In the first half of 2024, Egypt welcomed a record-breaking 7.1 million visitors, as reported by the Ministry of Tourism and Antiquities.
"Regarding Arab tourism, most Arab tourists prefer nightlife, shopping malls, and similar activities over historical sites. To this demand, Egypt has expanded its modern attractions, building malls and developing new cities like New Alamein. These efforts have helped boost Arab tourism by 70% in 2024," Abu Zaid highlights.
Meanwhile, Marwa Omar, Assistant Professor of Economics at Helwan University, tells Arab Finance: “Egypt has gained a competitive advantage over other MENA countries grappling with economic and political instability.”
“This relative stability makes Egypt a more attractive destination for regional travelers. Additionally, the currency devaluation has encouraged foreign and Arab investment in Egypt's tourism sector,” she clarifies.
To further attract regional tourists, the country is launching strong promotional campaigns. On March 1st, the Egyptian Ministry of Tourism and Antiquities, represented by the Egyptian Tourism Authority, launched a promotional campaign as a key tourist destination. The campaign targets both the Egyptian and Arab markets, including Saudi Arabia, the UAE, Kuwait, Jordan, Qatar, and Bahrain.
This month-and-a-half-long campaign promotes Egypt’s tourism experiences, encouraging Arab travelers to visit Egypt during Ramadan and Eid El-Fitr. It also promotes domestic tourism, inviting Egyptians to enjoy the unique atmosphere of the holy month in their homeland.
Eid El-Fitr remains a cherished cultural and social celebration in Egypt, bringing families and communities together. However, economic challenges like inflation, currency devaluation, and rising costs of living have reshaped the way Egyptians experience this festive season.
Despite these hurdles, Egypt's tourism sector has shown resilience by leveraging its appeal to regional tourists and implementing targeted promotional campaigns to attract visitors.
By Sarah Samir
Related News
