The tourism sector will not be affected by the last increase in fuel and diesel prices, according to Hesham El Damery, the retiring president of the Tourism Promotion Authority (TPA).
Notably, the Egyptian government slashed fuel subsidies on Friday, lifting petrol and diesel prices by about 25%. The price of a litre of octane 92 petrol increased to EGP 8, up from EGP 6.75. The price of octane 80 petrol and diesel fuel both increased from EGP 5.50 to EGP 6.75.
Moreover, the price of octane 95 petrol increased from EGP 7.75 to EGP 9 marking a 17% increase, while liquefied petroleum gas (LPG) cylinders increased by 30% to reach EGP 65, up from EGP 50 for household usage, while commercial LPG reached EGP 130.
El Damery told Daily News Egypt that this step is a corrective one as the tourism sector should not be subjected to subsidies from the government as it is a commercial sector.
By asking El Damery what some experts previously stated that Egypt is selling tourism at very low prices that do not cope with international prices, he stated that the increase in the fuel prices, will subsequently increase prices, which may increase the average spending of tourists in Egypt in a corrective manner.
The government’s decision comes in line with promises to reduce fuel subsidies according to the reform plan that was agreed upon with the International Monetary Fund (IMF) in order to secure a $12bn loan.