Today, the world is increasingly intricate and interconnected, requiring us to be crisis-ready. In effect, the question today is not if but rather when the next crisis will take place, Mohamed Kaoud, the head of the tourism and aviation committee of the Egyptian Junior Business (EJB) Association, says، Interestingly, the biggest risk is often not the crisis itself, but rather the preparation, management, and response.
"Despite the increase in the FDI projects in the Arab Region by 24% to 1,092 Projects, the investment decreased by 27% to $60.21 billion. Real Estate came as the top sector with an investment of $8.97 billion followed by industrial projects."
Kaoud pointed out، Egypt was the top destination in the Arab world with $13.7 billion of FDI investment with an average of $98 billion per project and 180 job opportunities.
Among the top 10 countries in the Arab region for Investment cost and opportunities, Egypt came first, followed by Morocco.
These are huge opportunities for the Egyptian government and private sector to capture investment opportunities in the travel, tourism, and hospitality sector.
The public and private sectors must come together to enhance their preparedness to mitigate the impact of a crisis, better manage to effectively address a crisis, and enhance their responsiveness through strong policies to ensure a speedy recovery.
The Arab world has and continues to suffer sizable losses and setbacks due to COVID-19. Not least among those setbacks is the shock to the travel and tourism sector.
As 90% of the global population adjusted to life under travel restrictions and others stayed home in fear of the virus itself, the sector came to a near-total standstill. Yet, Travel & Tourism leaders have remained strong and steadfast in the face of adversity.
Kaoud cited words of Paul Griffiths, CEO of Dubai Airports, who said: “This loss of mobility has devastated the travel and tourism sector worldwide. Governments across the globe are looking to the aviation industry for a solution that minimizes the risk of infection whilst getting the world’s people – and its economies – moving again."
"There are three essential steps required to create this outcome. A common testing procedure that is quick, accurate, and easy to administer, a unified approach to testing, isolation and protection protocol, and the establishment of bilateral agreements between countries, agreeing to adopt these measures. We need to act now to make travel safe again.”
According to Kaoud, four intertwined trends have become priorities in our industry: Demand Evolution: Traveller preferences and behaviors have shifted toward the familiar, predictable, and trusted. Domestic vacations, extensive planning, and the outdoors will reign in the short-term, with tourism businesses and destinations already adapting.
Health & Hygiene:
Health, safety, and trust are paramount in this new era. Personal experiences, the fear of being stuck in another country, and concerns for distancing will guide consumer behavior in the short- to mid-term. Businesses will have to collaborate even more closely with their extended value chains to ensure readiness.
Innovation & Digitisation: COVID-19 is proving to be an unexpected catalyst in the Travel & Tourism sector’s quest for innovation and the integration of new technologies. Amid stay-at-home orders, digital adoption and consumption are on the rise, with consumers now expecting contactless technologies, among others, as a basic prerequisite for a safe and seamless travel experience.
Sustainability: From widespread unemployment and anti-racism movements to the restoration of natural habitats, the world has been reinvigorated to tackle social, environmental, and institutional sustainability. In particular, heightened public awareness of wildlife markets and poaching has boosted advocacy for wildlife protection.
Kaoud cited words made by Jerry Inzerillo, CEO of Diriyah Gate Development Authority, noted: “Tourism has become one of the world’s most important economic contributors, creating one in 10 jobs globally. We have a huge and privileged responsibility as tourism industry stakeholders to come together and collaborate during a time of such important need – for we are stronger as a united voice, and industry job recovery will be aided more quickly with an approach that is both consistent and united internationally. We look forward to spearheading continued public-private sector partnerships to ensure an accelerated recovery and a fast and safe resumption of international travel.”
As Egypt’s GDP is the best performing in the MENA Region, it is time to capture more of those opportunities and create a fruitful future for the county. On top of the government's fast economic recovery plans, we would suggest the following:
Fiscal policy to include tax reductions.
Monetary policy to include credit guarantees to banks and rescheduling of bank credits.
Employment and skills to include temporary wage compensation, income support schemes, and digitalization and online/distance work widely supported.
Market intelligence to include timely and robust data to support strategic planning, precise monitoring of the socio-economic impact, and innovative smart tools and solutions.
Public-private partnerships to include enhanced cooperation, consultations of governments with relevant stakeholders, and inter-governmental committees.
Also and from a Macro perspective we would suggest the following:
Enriching the accessibility to Egypt and speeding the operation of Administrative Capital Airport, Sphinx Airport, Alamein Airport together with expanding the current main airports.
Marketing and Communications Plans that meet the new target segments and the evolving needs of today’s travelers.
Hospitality Council and/or Ministry that enhance the Hospitality industry in Egypt in terms of hotels & resorts together with the right workforce and calibers that will flourish the industry and set Egypt apart.
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