Nearly one-third of Egyptians fall below the poverty line, with the unemployment rate trending higher than extremely impoverished countries such as Ghana, Lebanon and Zimbabwe. In 2011, lasting poverty rates and poor living conditions caused Egyptian retaliation against the government. Political instability has complicated Egypt’s foreign partnerships since that time, subsequently affecting all areas of the economy; as a result, foreign investment in the country’s resources has had notable fluctuations. The inconsistency in Egypt’s economy leaves few employment opportunities, especially among younger generations, inevitably affecting rates of poverty in Egypt.
Travel in Egypt
Typically, travelers visiting Egypt receive encouragement to exercise increased caution, per the U.S. Global Health Advisory. The country ranks two out of four on the U.S. Department of State’s safety scale; this rating indicates that the U.S. Department of State has approved travel there although tourists should recognize the possible risks. This system is not solely unique to the United States – many countries have similar regulations. However, due to the global impact of COVID-19, regular travel ratings are momentarily on hold.
Factors responsible for Egypt’s pre-pandemic, level-two status include levels of terrorism and lingering tensions with the U.S. Embassy. This score is an improvement from a travel rating of four in 2011. Egypt received this high rating during a violent national rebellion that broke out against police brutality, the poor economy and religious divides. When a country has a level-four rating, the U.S. Department of State tells Americans not to travel there.
Tourism’s Impact on Egypt’s Economy
In February 2019, research expert Amna Puri-Mirza provided a statistical analysis that demonstrated that a decline in tourism impacted the Egyptian economy. From 2010 to 2011, national profits from the tourist industry dropped 32 percent in reaction to the Egyptian rebellion. In 2015, news of a Russian airline crash that was traveling to Cairo decreased tourism from 14.7 million to 5.4 million people in 2016.
The connection between tourism and poverty in Egypt correlates with the market value of different services and goods that the country produces; profits from tourism hold a large percentage of the country’s overall income. In 2018, tourism supported 2.5 million jobs, indicating heavy reliance on the industry. When situations adversely impact tourism around the globe, this substantially impacts the economy, and in turn, poverty in Egypt.
Efforts to Reduce Poverty in Egypt
Working to ease economic stress, the Egyptian government succeeded in obtaining a loan from the International Monetary Fund in 2016. While there might be uncertainties for the future of the loan, it is certainly aiding the nation in the return of tourists. Research on Egypt’s travel and tourism show promising signs of continued recovery, according to the World Travel & Tourism Council. In 2019, Egypt’s tourism level improved by 16.5 percent from the previous year, which is higher than the global average. Such an incredible growth rate is a promising sign for the rates of poverty in Egypt.
Foreign Relations with the U.S.
Despite past tensions, the partnership between the U.S. and Egypt has greatly improved. The established relationship could substantially impact the state of poverty in Egypt. The Trump Administration announced a priority of aid for Egypt; specifically, it intends to provide economic reforms and military funds to combat radical terrorism in Egypt. “Our relationship has never been stronger. And we’re working with Egypt on many different fronts,” said President Trump. Upon continuing a solid relationship with the U.S., the Egyptian government could utilize the support in developing a sustainable economy post-loan.
Egyptian President El-Sisiis and his officials are also working on economic reform needed to reduce poverty in Egypt. Like many nations, the sudden 2020 Coronavirus outbreak presents additional obstacles in accomplishing this goal. Experts expect that Egypt’s tourism industry will lose more than 40,000 workers to unemployment as a result.
Now, more families will be at risk of falling into poverty, causing a heightened risk of exposure to COVID-19. On March 20, 2020, The World Bank Group donated $7.9 million to fund Egypt’s emergency response. The nonprofit is working with Egypt to create financial, technological and health strategies to protect citizens. Ideally, the country should be able to avoid the anticipated increase in poverty in Egypt through this aid. Assisting the Egyptian economy has become an international effort. Not only is does The World Bank intend for the aid to provide the government with resources, but it also intends to disperse it among Egypt’s citizens, especially those experiencing poverty in Egypt.
Tourism is a key source of income for the country but has recently halted. Additionally, tense international relations and a poor global image have further damaged the already struggling economy. Fortunately, new global partnerships with Egypt have aided in encouraging tourism in Egypt. While the 2020 pandemic puts this travel on hold, the response of increasing aid will support the economy and prevent further poverty in Egypt. If aid continues, Egypt will receive a great opportunity to sustain its economy and people.
– GraceElise Van Valkenburg