The number of people visiting Egypt increased more than 25 percent in the financial year 2007/8, compared with the previous year, Tourism Minister Zoheir Garrana told Reuters in an interview. The minister declined to give the absolute figures but monthly statistics show that Egypt had about 9.8 million visitors in the financial year 2006/7.
The ministry stopped releasing monthly statistics after February this year. The number of nights tourists spent in Egypt and the amount of tourist revenue reaching the country increased 32 percent in the year, which ended in June, the minister added.
Egypt has not yet seen any slowdown in tourism because of slower growth in the European or US economies, he said. He added: "We anticipate a slowdown but as long as we are within the budget that potential travellers have, I think we will continue to have the growth we have witnessed in the past three years."
Egypt is a relatively cheap tourist destination but Garrana said that a combination of high inflation and a stable Egyptian pound could pose problems in the future. The consumer price index rose 22 percent in the year to June and the Egyptian pound has appreciated about 3 percent against the dollar since the start of the year.
"Definitely cost has become a big factor in how people are coping and calculating their selling prices. If we increase the prices above a certain figure, it can have a negative impact on the flow of the industry," he said. He said that for the sake of tourism he would like to see the pound-dollar exchange rate at seven or eight pounds to the dollar, compared with about 5.3 pounds now.