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Comparative analysis of egyptian and turkish tourism industry


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Comparative analysis of egyptian and turkish tourism industry

  1. 1. 2011Comparative Analysis of Egyptian and Turkish Tourism Industry Paritosh Kashyap
  2. 2. Comparative Analysis of Egyptian and Turkish Tourism IndustryThe given report is a comparative analysis between the two biggest tourist destinationsfrom the Mediterranean region, Egypt and Turkey across qualitative as well asquantitative frameworks. Both Turkey and Egypt are world famous tourist destinationsand share similarities across religious, cultural social and economical parameters.Profiles as tourist destinationEgypt: Egypt also known as the cradle of civilization has got a strong and vibranttourism industry which employs 12% of the work force and receives around 125 Milliontourists every year (Dinar Standard, 2011). It has a wide range of tourist avenues such aspyramids, phoenix and other magnificent monuments; exotic desserts, wild life parksand sea beaches; shopping complexes and other life style centers and state of the art golfcourses. It provides a wide range of interesting activities such as sightseeing, dessertsafaris, golf tourism, cultural tourism, sea activities, cruising, adventure sports etc.(Egypt. travel, 2011)Turkey: Like Egypt, Turkey also has a very rich history and cultural heritage and isconsidered as the melting point of various civilizations such as European, Arabic andCentral Asian. It is also blessed with range of tourist avenues such as; beautiful citieslike Istanbul, Antalya, Ankara etc; rugged landscapes, serene and calm sea beaches andcoastlines, exotic floras and faunas, heritage sites, museums, monuments andarcheological places etc. The range of activities at Turkey includes site seeing, adventuresports, winter sports, golf, rafting, eco tourism, yachting, night life, cultural tourism,shopping, Turkish bath, cuisines, conventions and wild life adventures etc.(tourismturkey. org, 2011)Demographic and Economic Indicators for 2010 (Euromonitor,2011)Paritosh Kashyap Page 2
  3. 3. Comparative Analysis of Egyptian and Turkish Tourism Industry:Parameters Egypt TurkeyPopulation 80 Million 73.7 MillionReal GDP Growth 5.3% 7.8%Inflation 11.2% 8.6%GDP (PPP) US $ 498 Billion US $ 1015 BillionAnnual Gross Income US $ 191 Billion US $ 644 BillionAnnual Disposable Income US $ 185 Billion US $ 544 BillionGNI per Capita US $ 2070 US $ 8730GDP Growth rate of Egypt and TurkeyThe following figure compares the GDP growth rate of both, Egypt and Turkey 10 7.8 8 7.1 7.2 6 5.3 4.8 4.6 4.8 3.5 GDP Growth Rate 4 Egypt 2 0.9 Turkey 0 2007 2008 2009 2010 2011(Est) -2 -4 -4.7 -6 YearSocial Indicators of Egypt and Turkey (Source: UNICEF)Paritosh Kashyap Page 3
  4. 4. Comparative Analysis of Egyptian and Turkish Tourism IndustryIndicator Egypt TurkeyAdult Literacy Rate 66 % 89 %Primary School Enrollment 94 % 95 %Secondary School Enrollment 73 % 82 %Phone Penetration 51 % 89 %Internet Penetration 17 % 34 %Population Growth Rate 2.1 % 1.5 %Median Age 24.3 28.5 100% 94% 95% 89% 89% 90% 82% 80% 73% 70% 66% 60% 51% Egypt 50% Turkey 40% 34% 30% 17% 20% 10% 0% Adult Literacy Primary School Secondary Phone Internet Rate Enrollment School Penetration Penetration EnrollmentTourism industry in Egypt and TurkeyEgyptParitosh Kashyap Page 4
  5. 5. Comparative Analysis of Egyptian and Turkish Tourism IndustrySince ancient time Egypt has been a very popular tourist destination, attracting largenumber of tourists from Europe, Middle East and Africa. The new era of tourism inEgypt began in 1989-90, when many of the leading hotels were privatized, airline sectorwas liberalized and the Egyptian govt. came up with some strong marketing campaigns.Since then the industry has been moving with an accelerating pace, occasionally hit hardby terrorism and political unrest. Last year out of the 125 Million tourists it had received,Russia with 14 % had the highest share, followed by United Kingdom, Germany andItaly. Though presently due to the political unrest the tourism industry has beenaffected, but in the long run it is expected to have positive impact, owing to expectedpolitical stability and transparency as well as more inflow of tourists from emergingeconomies like China and India.The following histogram shows the growth of tourism industry since 1989-90, for EgyptThe following figure shows growth of annual revenue from tourism, over the last 20yearsParitosh Kashyap Page 5
  6. 6. Comparative Analysis of Egyptian and Turkish Tourism IndustryThe following pie chart shows the percentage of 10 major countries, exporting tourist toEgypt, in the year 2007 (values given in 000s)Source of data: (Information development support center)Egypt is primarily known for cultural tourism. Blessed with large number of Pharaonic,Roman, Coptic and Islamic monuments and archaeological sites, it’s touted as a paradiseParitosh Kashyap Page 6
  7. 7. Comparative Analysis of Egyptian and Turkish Tourism Industryfor culture tourists coming from various parts of the globe. The government of Egyptalong with the support of International Monetary Fund (IMF) and other internationalorganizations has made huge investments developing the tourism sector, a sector thatconstitutes 40 percent of Egypt’s non commodity export and employees more than 2Million people directly or indirectly. Though position enjoyed by cultural tourism isunparallel, various other forms of tourism such as, spa, sports, dessert safari, sea,adventure, eco , and convention tourism (business tourism) etc have been concomitantlydeveloped.TurkeyThanks to its rich History, wide range of exotic landscapes, beautiful beaches andstrategic position, tourism industry in Turkey had made noticeable growth in past fewyears, better than many of its European counterparts. Turkey’s tourism sector took aleap during the early 80s. In 1980, Turkey had mere 60, 000 beds and the tourismindustry constituted just 0.8% of the GDP. (Mahmut Zortuk, 2009). In 2009 with revenueof around US $ 21 Billion it constituted 3.4% of the GDP and 20.8% of the export.According World Tourism Organization, Turkey is ranked 7 th among the best touristsdestinations in the world and holds 9th position in terms of annual revenue fromtourism. (Sunday’s Zaman, 2011) Istanbul; the capital of two of the greatest civilizationsin the world, Byzantine and Ottoman civilizations; along with Antalya are the twoimportant focal point of Turkish tourism, comprising of 60% of the tourist intake.Istanbul was the 3rd most visited city in Europe as on 2008, and was the cultural capitalof Europe in 2010. (Invest in Turkey, 2009)The following columns shows the growth in inbound tourism in Turkey over the periodof timeParitosh Kashyap Page 7
  8. 8. Comparative Analysis of Egyptian and Turkish Tourism IndustrySource of the data: Middle East and North Africa report, Istanbul Bulletin, SundayZaman, Country studies, Central daylight timeThe following figure shows growth of annual revenue from tourism, over the period ofyears,Source of data: Middle East and North Africa report, Istanbul Bulletin, Sunday Zaman,Country studies, Central daylight timeParitosh Kashyap Page 8
  9. 9. Comparative Analysis of Egyptian and Turkish Tourism IndustryIn the near future tourism industry in Turkey is expected to grow further. Around 40%of tourists come from, Russia, United Kingdom, Germany and Iran. Major touristattraction in turkey includes, archaeological sites, monuments, museums, beautifulcoastline with 314 beaches, rugged landscapes etc and major forms of tourism includescultural tourism, winter tourism, beach tourism etc. Other alternative forms of tourismhad been developed such as medical tourism, religious tourism and sports tourism.Turkey has 14 golf courses, 20 skies and 40 marinas (as of 2008) and is emerging assports tourism destination. Similarly it is evolving as a medical tourism destination, witha large number of medical tourists coming from Middle East region.Comparison Egypt and Turkey on a “Nine Point” Analyticalframe workThe success of a tourist destination depends on a wide range of factors ranging fromplaces to visit, connectivity to political stability and infrastructure etc. In the given partboth the destinations will be judged on a set of nine parameters, with every parameterhaving a specific weight age score, depending on the importance of the particularparameter. In accordance to the competencies shown under individual parameters, boththe countries will be rated from 1 to 5, with 1 being lowest to 5 being highest. Theindividual scores will be multiplied with the weight age score and their sum total overall the nine parameters will be the final score for the individual states.Parameters Weight agePlaces to visit 9Infrastructure 8Safety 7Cost 6Strategic Location 5Marketing 4Climate 3Social factors 2Legal factors 1Paritosh Kashyap Page 9
  10. 10. Comparative Analysis of Egyptian and Turkish Tourism Industry • Places to visit: the success of any tourist destinations depends heavily on the things it has to offer. In this regard both Egypt and Turkey has world class tourist places adored by visitors. While Egypt has some most sought after archaeological sites and monuments, along with beautiful beaches, exotic desserts, spas, golf courses, convention centers Nile cruises etc; Turkey is also endowed with archaeological sites, museums, monuments along with beaches, springs, flora and fauna, sports and medical utilities, convention centers, exciting night life etc. Hence both have been rated as 5. • Infrastructure: Includes, hotels, resorts, roads, public transportation, telecommunication, ICT (information and communication technologies), convention centers etc and plays a significant role in the tourism industry by ensuring comfortable and hassle free stay for the tourists. Turkey has around one Million beds, 46 airports, and extensive road networks, it is ranked 55 in the T&T business environment and infrastructure sub index, consisting of ,air transport, ground transport, tourism, ICT, infra structure, tourism infra structure. In the same index Egypt has a rank of 74. Based on their rankings, a score of 3 and 2 had been given to Turkey and Egypt respectively. • Safety: Is a major concern for the tourists as it has a huge psychological impact on the mindset of visiting tourist. A perceived feeling of lack of safety may result in avoidance of destinations. Both Egypt and Turkey have their own safety concerns, with situations more serious in Egypt due to the current political instability. There has been many attacks on tourists in both Turkey as well as Egypt, resulting in high causalities, there by hitting the tourism business hard. Along with fundamentalism, Turkey also struggles hard with Kurdish uprising in the South, which had occasionally targeted tourists. Based on these safety concerns a low score of 2 had been decided for Turkey. It has been further revised to 1 in case of Egypt, in view of the political, which resulted in one Million tourists leaving the place.Paritosh Kashyap Page 10
  11. 11. Comparative Analysis of Egyptian and Turkish Tourism Industry • Cost: Both Egypt and Turkey are comparatively cost effective in comparison to many of its counterparts in Europe. Egypt is one of the low cost tourist destinations where the cost of travelling is 20 % of the United Kingdom. Cairo its largest city has a rank of 224, in terms of cost of living among 276 places in the world. According to an estimation by; average daily travel in Egypt, which includes accommodation, food, water, local transportation etc could cost around US $ 33.5; souvenirs could cost around US $ 100 and daily travel and cruise trips can cost around US $ 30. In case of Turkey values for the same will be US $, 47, 8 and 55 respectively. Cost of daily travelling can cost US $, 200, 164, 77 and 51 in United Kingdom, USA, Mexico and Thailand respectively. Hence for cost, on a scale of 5 a score of 5 has been given to Egypt where as 4 has been given to Turkey. • Strategic Location: Turkey is strategically placed between the cross roads of Europe, Middle East and Central Asia. Similarly Egypt, situated in North Africa is at a distance of mere four hours from Europe and is at the door steps of Middle East. For both of them, their strategic locations have played pivotal role in their tourism industry. In the given parameter a score of 5 had been awarded to both. • Marketing: Due to the fact that tourism plays a very pivotal role in their individual economies, both Egypt and Turkey intend to take strong initiatives in marketing their destinations. Ministry of tourism and culture in Turkey has an ambitious plan of achieving 50 Million tourists and US $ 40 Billion as revenue by 2023, as a result of which it has offices all across the world undertaking strong marketing initiatives. In spite of this, marketing expenditures are believed to be low in comparison to some of the heavily marketed destinations like Spain, UAE etc. The same holds true for Egypt, though it has its own tourism ministry with a fix budget allocated for marketing, a lot more could be done. In case of both Turkey as well as EgyptParitosh Kashyap Page 11