As it gets hotter and hotter in Egypt, people seek any means to overcome the heat and humidity. The least expensive way is to stay at home, dive into bubbly bathtubs, eat ice cream and watch the FIFA World Cup live from South Africa. But others, who would be deemed as luckier by those indoor holidaymakers, will be working on their tans in Egypt's two famed seaside resorts Alexandria and the North Coast. But this year is different, agents say. "The season this year is very short. It's almost five weeks until the end of July before Ramadan, the holy month of fasting," Mahmoud Rammah, an Alexandria-based agent, told the Egyptian Mail in an interview. Rammah referred to the Muslim lunar month, which is expected to start this year on August 11. For the majority of Egyptians, it's a five-week season. So you'd better get a colourful swimsuit and head to one of the country's holiday resorts whether on the Red Sea or the Mediterranean Sea. "Rents have shot up this season. A small flat, which averaged LE200 ($35.3) per night last year, rents this year for LE300 due to higher demand," Rammah said. The Mediterranean city of Alexandria, 221km north of Cairo, is the most popular destination for Egyptian holidaymakers, according to a survey by the State-run Central Agency for Public Mobilisation and Statistics (CAPMAS). Around three million holidaymakers visit Alexandria every summer season, which usually begins in May and ends in September, according to CAPMAS. "Egyptian expatriates in the Arab Gulf holidaying in Egypt add to the demand for units. It is the high season and agents have bookings until August. The season is full," he said. Other holiday destinations nationwide include Gamasa, Ras el-Bar and Baltim. But Alexandria, the North Coast and Marsa Matrouh are the country's most popular destinations for holidaymakers, according to CAPMAS. A chalet in the country's elite resort of Marina, 300km northwest of Cairo, would cost up to LE3,000 per night, according to Rammah. "Alexandria is a big city where markets, shopping malls, restaurants and other leisure time facilities are open all day and most of the night. There are more than 40 beaches fully equipped for families at affordable prices," he pointed out. From Abu Qir in the east to Sidi Kerir in the west, scores of holidaymakers from all walks of life bask in the sun on around 42 beaches in Alexandria. "Even those who prefer the North Coast need to do their shopping in Alexandria. Units in upmarket districts like Tharwat start from LE800 per night. In other places like Asafra, for instance, prices start from LE200-LE300," he explained. How do holidaymakers affect the economy? It's all about spending, one analyst said. "Domestic tourism raises local demand, which in turn increases consumption, especially in the summer. Prices usually go up in the summer due to domestic holidaymaking," Sherif Shawqi, a researcher at Alexandria University, told this newspaper. Inflation in the most populous Arab country fell to 10.5 per cent in May, according to CAPMAS. Inflation hit a record high in August 2008, exceeding 25.6 per cent. Annual inflation stood at 21.1 per cent in 2008. "Inflation picks up in July and August, which are the high season for holidaymakers here. Egyptians should be urged to go on holidays especially at times of economic slowdown," Shawqi said. Inflation rates averaged 9.9 per cent in June and July 2009. Inflation rates have taken a downtrend since the beginning of this year. But economists argue inflationary pressures will be picking up due to "probable price hikes" in world markets. "When prices go up traders and producers seek to raise their output, so that supply would meet demand. Employment goes up, raising the country's output and consequently gross domestic product (GDP)," he explained. "Domestic tourism goes side by side with tourist arrivals from other countries. Both resources boost tourist infrastructure, which indirectly creates demand for building materials and drives the construction sector," he said. Domestic tourism in Egypt accounts for roughly 26 per cent of international tourist arrivals, according to the Ministry of Tourism. Tourist arrivals slipped by 2.3 per cent to 12.5 million in 2009, from 12.8 million a year earlier. Against the backdrop of global recession, revenues from tourism in the North African country eased slightly to $10.7 billion in 2009, from $11 billion a year earlier, according to the Ministry of Tourism. Egypt is among the top 25 destinations worldwide, accounting for one per cent of the global market, according to the United Nations World Tourism Organisation (UNWTO). International tourist arrivals are estimated to have declined worldwide by four per cent in 2009 to 880 million, generating $852 billion in export earnings, according to UNWTO. "There's a direct proportion between high income and domestic tourism. Travel comes after food, clothes, housing, healthcare and education. Due to low living standards in Egypt, around 40 per cent of income goes to food needs," he argued, pointing out that holidaymaking is a luxury for many Egyptians. According to CAPMAS, Egyptians spend around one per cent of their incomes on leisure time and entertainment. Around 40 per cent of the country's population, estimated at 78 million, live on less than $2 a day, according to the World Bank. "It is likely that inflation will increase in the coming three months. Summer vacations and the Ramadan spending spree will be the main drive," he added.
