Red Sea resorts set for high demand among European travellers

Forecast international seat capacities from Europe to Egypt in the six months from June to November are set to ramp up significantly, boding well for duty-free retailers and the beleaguered tourism market in certain destinations within the region, according to travel-retail intelligence service Counter Intelligence Retail (CIR).

Scheduled international seat capacities from June to November will rise 7.9% on average, according to CIR. However, in some locations the growth will be over +200%.

Despite locations such as Sharm el-sheikh, as well as Middle Eastern markets such as Saudi Arabia having encountered terrorism-related events in recent times, European tourists are expected to flock back to Red Sea resort with UAE and Kuwait the prime locations to continue to drive the biggest volumes.

Airports such as Hurghada and Marsa Alam as well as Sharm el-sheikh are seeing big gains, contributing to a +39% growth in capacity from the region. Based on the Route Dashboard of CIR’s modelling tool, Business Lounge, in the six-month period from June seats to Hurghada are forecast be up by +80.9%, to Sharm el-sheikh by +70.7%, and to Marsa Alam by a huge +206%.

Photo of CIR Red Sea

“After a period of declining traffic due to a combination of political unrest and terrorist activities, European numbers look like they will pick up strongly this summer which will help the tourism and duty-free markets in their recovery,” said Counter Intelligence Retail president Garry Stasiulevicuis. “Over 500,000 additional seats are set to be available from key European markets in the six months from June.”

“Among Egypt’s top 10 European markets, only Italy is not likely to record double-digit growth in seat capacity. The biggest European market, Germany, is expected to show +81% growth, while the UK should be up by +26%, closing in on the number two market of Turkey,” he added.

Among European markets, the best year-on-year growth is expected from the Czech Republic where seat capacity will more than triple this summer – a rise of +240%. It will overtake markets like Greece, Switzerland and Austria.

Photo of CIR Red Sea 2

The resumption of flights to resorts like Sharm el-Sheikh and Hurghada has been key to the increase in international capacity. However these increases still have some way to go before returning to 2015 levels; capacities are currently lower by -69% and -16% respectively for the two airports, for instance, according to CIR data. Egypt’s resorts are expected to achieve the strongest gains during the summer.

While the overall traffic news is good for the coming summer months, there is still some way to go before Egypt’s tourism economy gets to its former level, stated CIR. According to the World Travel and Tourism Council (WTTC), Egypt’s forecast travel and tourism direct contribution to GDP for 2017 will rise slightly to about 3.3% of GDP (versus about 3.2% in 2016).

However, this is well below the 9% share travel and tourism had in 2007 – and even in its 10-year outlook the WTTC believes that this sector will contribute only about 3.9% by 2017.

Original Post : DFNI

Author : David Tran

About the author: Thomas Yates

After finishing his Business Management degree Tom was looking to join a progressive company where he had the opportunity to have his own ideas listened to and implemented. It was a case of being in the right place at the right time as Rivermead Global were looking at taking somebody on and in 2009 Tom joined the company. If you are looking at buying a property in Egypt or Turkey you have come to the right people. Read our Ultimate Guide To Buying Property In Hurghada