The aggravation of the situation in the Middle East has limited the demand of Russians for tours to Egypt

The aggravation of the geopolitical situation in the Middle East limits the demand of Russian tourists for Egypt. Some market participants are recording a decrease in the number of bookings, while others call the country one of the few mass destinations without growth. In addition to general tension, high prices are affecting the activity of tourists, although, according to business assurances, the cost of holidays in Egypt is already declining.

The number of accommodation bookings in Cairo on January 1–18 decreased by 14% year-on-year, in Sharm el-Sheikh by 13%, and in Hurghada remained at last year’s level, Ostrovok.ru calculated. Egypt’s indicators are out of line with the general trend. According to Ostrovok.ru, demand for all foreign destinations in January increased by 10–15% year on year. According to Yandex Travel estimates, demand for flights to Egypt remains at last year’s level, while demand for all non-CIS countries is growing by 23%. There are similar dynamics in the segment of organized tours. According to Sletat.ru, the total volume of bookings of foreign resorts for the second half of January-February increased by 16% year-on-year, but in the case of Egypt there is no positive trend.

Demand may be affected by rising tensions in the Middle East, which began with the escalation of the Palestinian-Israeli conflict in October 2023, followed by a wave of confrontation in the Red Sea. Due to cross-attacks by the Houthis, the US military and their allies, shipping risks have increased, Royal Caribbean and MSC Cruises have canceled cruises through Red Sea waters, and some logistics companies have revised itineraries. Executive Director of the Association of Tour Operators of Russia Maya Lomidze notes that the fighting in the region is not taking place on the territory of the country and is remote from tourist sites; no recommendations have been received to the tourism industry. Travelers, she said, are monitoring the situation; every tenth tourist asks questions about security in the context of Egypt. Fun & Sun, Intourist, Anex Tour and Russian Express called sales in the direction stable. “There will always be those who are very worried and may refuse the tour or buy with less depth, but so far we have not noticed any hesitation,” they say at Anex Tour. According to MTS Travel, from January 1 to 17, the number of trips to Egypt increased by 5% year-on-year, and to other non-CIS destinations by 16.5%.

But these trips were planned earlier, and the situation in the Red Sea has a greater influence on tourists who are choosing a vacation destination now, MTS Travel points out.

Agents talk about reduced interest in Egypt. OnlineTur.ru representative Igor Blinov notes that the negative effect became noticeable at the end of 2023 and the current situation does not add to the popularity of the destination. Vice President of the Alliance of Travel Agencies Aleksan Mkrtchyan points out that interest in Egypt during the New Year holidays was greatly reduced. Tourists, in his opinion, expected hoteliers to reduce prices due to the collapse in demand from Western European tourists, and when this did not happen, they chose alternative destinations. A redistribution of demand is still observed. According to Sletat.ru, demand for Cuba tripled year on year, for Thailand and Sri Lanka – by 70%.

Vice-President of the Russian Union of Travel Industry Dmitry Gorin says that the Russian flow to Egypt is recovering noticeably slower than to other open countries with direct transportation, but he attributes this primarily to the high cost of vacation. In addition, he adds, many Russian airlines prefer to operate wide-body aircraft on Asian routes.

According to Sletat.ru, the average cost of a tour to Egypt for the second half of winter increased by 23% year on year, to 139.6 thousand rubles. A night in a hotel, according to Ostrovok.ru, on average increased in price by 32%, to 8.3 thousand rubles. A flight from Russia to Hurghada and back costs an average of 44 thousand rubles, a year-on-year figure that has remained almost unchanged, says Yandex Travel. Maya Lomidze also considers the cost of holidays in Egypt to be a limiting factor, despite the price decline that began in January. Mr. Mkrtchyan expects that this will help restore interest in holidays in Egypt in the spring.

Alexandra Mertsalova