Egypt is a world-renowned touristic destination. Tell someone you are visiting Egypt, and the pictures immediately come into focus: the iconic pyramids of Giza, with the mysterious Sphinx standing guard; the beautiful beaches along the coast, warm and inviting; the vibrant and bustling bazaars, infused with the legacy of the pharaohs, teeming with the rich cultures of its people.

As the top destination for tourists visiting North Africa, how might Egypt evolve its tourism industry into a sustainable engine for economic development – particularly as the world emerges from the pandemic?  More fundamentally, might tourism sector provide an opportunity to rethink the development model capable of withstanding & thriving in the context of interlinked, largely unpredictable and fast-moving crises – from food security and changing climate, to rapid inflation, polarization, economic downturn & inequality?

This is the critical question facing UNDP Egypt, one of nine country offices selected by UNDP’s Strategic Innovation Unit to join the second cohort of Deep Demonstrations, an initiative financed by the Government of Denmark.

In this post, we detail the context for tourism in Egypt, consider emerging trends in the economic model, and share progress to date in shaping broader system transformation.

The Egyptian Context

Egypt is best characterized as a Low-Cost Mass Tourism Magnet. According to the IMF, the tourism industry employed 10 percent of the population and contributed to about 12 percent of GDP pre-pandemic. Egypt ranks first in Africa, fifth in MENA, and 51^st globally in the travel and tourism development index (TTDI). It is a top performer in the MENA region with regards to environmental sustainability (31), natural and cultural resources (33), and business and cultural travel (22). With over 100 million in population, Egypt is both a prime destination for nature-based activities and a home to rich cultural diversity.

While the pandemic has definitely been an accelerant, the combination of economic factors and new norms that underpin global tourism raise fundamental questions about long-term viability (see fig 1). Even as the global airline industry recovers from the pandemic, the costs of long-haul travel have become increasingly unaffordable – not only in the rising price of fuel but also in its contributions to climate change. The unexpected benefits of lockdown, improved environments and ecosystems, have countries questioning whether they want to return to the risky, crowded, over-reaching pre-pandemic world. And COVID-19 has magnified the vulnerability of local communities who already do not benefit from unsustainable tourism.