Tourism in Egypt grew by 20% in 2007, according to the United Nations World Tourism Organization (UNWTO). The Middle East, despite continuing turmoil, is one of the strongest tourism markets in the world, according to the report. For all of last year, some 46 million tourists visited the Middle East, and 10 million came to Egypt. The capital city of Cairo and the tourist resorts of Sharm El Sheikh and Hurghada remain among the most popular destinations in the country.
The Egyptian government has announced a goal of receiving 14 million visitors a year by 2011. With the recent numbers, this certainly looks achievable. The UNTWO estimates that tourism will grow at an average rate of 6% annually in Egypt over the next decade. At the same time, the government of Egypt is doing all it can to bolster investment from abroad.
Stamp duty in Egypt, along with capital gains tax and inheritance tax for British citizens living in the UK and if property is left to family members are all zero. There is also no tax for non-resident owners in Egypt. These incentives now appear to be having an impact on foreign investment in the country. According to the Institute of International Finance (IIF), the net foreign direct investment (FDI) to Egypt was 8.2 % of the country’s GDP in 2006/2007. That’s compared to just .5% in 2004/2005.
The increase in visitors from abroad has fostered demand among investors looking to rent accommodation to the new influx of travelers. “This is excellent news for the buy to let market,” said Marion Isom, managing director of La Siesta Tourism and Real Estate Services. He continued: “Tourism figures always have an effect on the property market of a region and this rapid growth in interest in this amazing country is a welcome step forward.”
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