ECONOMY: Egypt Cashes in on Gulf Arab Tourists

By Cam McGrath Reprint | | Print |

Cam McGrath

CAIRO, Aug 5 2004 (IPS) - Each summer as the temperature soars, well-off Egyptians abandon their dusty capital and head to a string of villas and beach resorts on the breezy Mediterranean coast. Filling the void are thousands of Gulf Arab tourists who flock to Cairo to escape the even more oppressive heat of the Arabian Peninsula. They come with one just one goal – to have a certain kind of fun.

“Gulf Arabs are not interested in sightseeing like other tourists,” says Maged Radwan of Eastmar Travel. “They would rather go to a big aquapark than the Pyramids or museums.”

Arab visitors from Saudi Arabia, Kuwait and the smaller Gulf states begin arriving in Cairo in July. Many stay until September, renting flats or villas for the entire summer.

“They are very independent and want to feel like they are at home,” Radwan told IPS. “They usually come as a large family and bring their servants, their drivers and even their own cooks.”

Once settled, Gulf Arab tourists spend their days at shopping malls, amusement parks, casinos and cabarets. Their reputation as impulsive buyers and outrageous spenders sits well with Cairo business operators, many of whom make enough profit during the summer to cover their expenses for the rest of the year.

“About 85 percent of our guests during the summer are Gulf Arabs,” says Samy Nassif, front office manager of the four-star Atlas Zamalek Hotel. “Of these, 90 percent arrive as families and rent suites for not less than 15 nights.”

The annual influx of Gulf Arab holidaymakers has become increasingly important to the local economy in recent years. When Americans and Europeans cancelled holiday trips to Egypt following the 9/11 terrorist attack, Arab tourism growth provided a much-needed cash injection.

“Since September 11, Arabs do not want to fly to the U.S., and the European Union has made it very difficult to get visas,” explains Elhamy El-Zayat, chairman of the Egyptian Federation of Tourist Chambers. “This makes Egypt more attractive as a destination.”

According to the Ministry of Tourism, Egypt received 1.32 million Arab visitors in 2003, a 36 percent increase since 2001. Arab nationals now account for 22 percent of all tourist arrivals, about half of them from the Gulf region. Their exact contribution to Egypt’s 4.3 billion dollar tourism industry is difficult to measure, but it is generally agreed that Arab tourists stay longer and spend more than their western counterparts.

El-Zayat expects the numbers to climb even more, but admits Egypt missed opportunities to increase its share of the market. “We could have done better,” he says. “We have not really catered to Arab tourists in terms of promotion.”

After 9/11, universities in Jordan and Lebanon actively promoted their curricula to Arab students studying in the United States and Europe. Thousands of students responded, preferring to study in a familiar Arab environment than in the increasingly hostile and suspicious west.

“Once you get a student, you get his family and you get him as a repeat visitor,” explains El-Zayat, adding that many of the Gulf Arabs who regularly visit Cairo are graduates of Egyptian universities.

But exorbitant taxation has also resulted in a loss of potential tourists. Egypt tacks a 40 percent entertainment tax and 12 percent service tax on large events. It recently increased its sales tax to 10 percent.

“It is a ridiculous tax rate…over 60 percent,” says El-Zayat, who has lobbied to have the entertainment tax reduced. “Make the tax reasonable and people will come, then you can collect tax on the food, beverages and goods.” He said Egyptians wrongly assume that wealthy Gulf Arabs do not care about their money.

“They overcharge us for everything,” complains Khaled Al-Hejazi, a visiting businessman from Jeddah. “They think we don’t notice or we don’t care, but we like a good value as much as the next person.”

Taxi drivers demand inflated fares if they suspect the passenger is a Saudi. Landlords hike rents up to 800 percent above the usual during the summer months for Gulf tenants.

Egyptians say many Gulf Arabs are ill mannered and arrogant. “They figure they can buy anyone,” says Mohammed Saeed, who worked as a reception desk clerk for four years at a Cairo hotel. “They treat Egyptians like dogs.”

Gulf Arabs come to Egypt “to do all the things they can’t do back home,” Saeed told IPS. “Often their actions conflict with their own Islamic values.”

Free from the restrictive social atmosphere of their home countries, Cairo holds many temptations for wealthy Gulf Arabs visitors. “The men leave their wives and children at the hotel to seek relations with prostitutes,” says Saeed. “They drink lots of whisky, gamble and frequent nightclubs.”

A Saudi visitor resents the negative image a few bad apples have given his countrymen. “Yes, there are some who do un-Islamic things, but most of us just want to relax with our families and have fun,” he said. “We love Egypt, which is why we come here every year.”