Required Report: Required - Public Distribution Date: September 23,2020

Report Number: EG2020-0045

Report Name: Food Service - Hotel Restaurant Institutional – 2020 Annual

Country: Egypt

Post: Cairo

Report Category: Food Service - Hotel Restaurant Institutional

pandemic outbreak. The outbreak led to the complete suspension of tourism from March through June

(100-days). Tourism revenue losses have been $1 billion per month. There are 24 international hotel

chains operating 145 facilities with 43,545 rooms in Egypt. The number of restaurants in 2019 grew to

40,605, up by over a thousand units from 2018. Sales values reached $7.5 billion, up $900 million or an

increase of 14 percent compared to 2018. Egypt’s institutional food service industry revenue is

estimated at $7.3 billion. Egypt’s hotels, restaurants, and institutions do not normally import food and

beverage, nor ingredients and supplies directly. These purchase from Egyptian importers who have

established relationships with foreign exporters and are more familiar with the country's complex import

regulations.

robust, averaging five percent. The impact of the novel coronavirus (COVID-19) on trade and tourism

flows on Egypt’s economic activity were significant in the latter part of FY 2019-2020 and going into

FY 2020-2021. Real gross domestic product (GDP) growth in calendar year (CY) 2019 (January-

December) came in at 5.6 percent, up from 5.3 percent in 2018, the International Monetary Fund (IMF)

projects GDP growth for 2020 at two percent. A rebound to 2019 growth levels is unlikely before 2024.

Despite ramped up government spending, tourism, which accounts for 9.5 percent of employment and

5.5 percent of GDP – largely shut down, and private consumption growth, exports, and investment

suffered due to COVID-19 and the restrictive measures taken to combat it. Foreign investors pulled $17

billion out of Egypt in March. Services exports will fall in 2020, hit by the impact on Suez Canal

revenues (94.8 million metric tons of freight pass through in May, down 10 percent from a year earlier)

increase in the number and frequency of visitors. Prior to the COVID-19 outbreak 13.3 million foreign

tourists came to Egypt in 2019; up by 1.8 million visitors from 2018 and 4.8 million more than in 2017.

In late July and into early August 2020, Egypt authorized the resumption of international flights, lifted

the partial nighttime curfew (imposed since late March), and reopened restaurants, cafes, theaters, and

cinemas, as well as hotels, museums, and archeological sites, but is still limiting capacity at 50 percent.

The easing of restrictions is part of the government’s coexistence plan to maintain anti-coronavirus

precautionary measures while resuming economic activities. COVID-19 has negatively affected HRI

demand for beef, poultry, dairy products, sweets and snack foods, and other consumer-oriented foods.

TABLE 1: Advantages and Challenges Facing U.S. Suppliers of Consumer-Oriented Products

billion) followed by Brazil ($568 million), India ($371 million), and New Zealand ($190 million). It

imported roughly $2.9 billion in consumer-oriented food products. The United States came in as the

fifth largest supplier. Egypt imported $173 million worth of U.S.-origin food products, representing six

percent of total imports, this is an increase of 30 percent from the 2018 value of $133 million.

potato chips, popcorn, food preparations, and pork and pork products. Egypt imported almost $173

million worth of consumer-oriented products in 2019 from the United States. The top imported products

were bovine livers ($67 million), dairy products ($45 million), tree nuts ($32 million), and condiments

and sauces ($2 million). Hotel and restaurant managers indicate that US-origin products not present in

significant quantities in the market which have good sales potential include affordable (choice and

select) frozen beef cuts, wine, peanut, bread flour, sauces and dressings, and syrups.

Alcoholic beverages (wines, beers, and spirits) are served in Egyptian hotels and in a small number of

high-end restaurants in Cairo, Alexandria, and tourism locales along the Red Sea coast. Some hotels

serve only local wines due to costs. Major hotel chains indicate that serving U.S. wines would boost

their restaurant sales, but lament the shortage of availability. Wine is subject to a customs duty of 1,950

Mailing Address: 8 Kamal El Din Salah Street, Garden City, Cairo, Egypt

Phone: +(20) (2) 2797-2388 ● Fax: +(20) (2) 2796-3989  [email protected]

For additional information, see www.fas.usda.gov. See our Food and Agricultural Import Regulations

Phone: +(20) (2) 3748-8468 ● Fax: +(20) (2) 3748-5083

Email: eha@egyptianhotels.org ● Website: http://www.egyptianhotels.org/Default.aspx

Mailing Address: 20 Salem Street, Agouza, Cairo, Egypt

Phone/Fax: +(20) (2) 3762-2116/ 2117/ 2118

Email: eca@egyptchefs.com ● Website: http://www.egyptchefs.com/

Egyptian Tourism Federation

Mailing Address: 8 El Saad El Aly Street, Dokki, Giza, Egypt

Phone: +(20) (2) 3337-8473 ● Fax: +(20) (2) 3749-0223 and +(20) (2) 3337-8450

Email: [email protected] ● Website: http://www.etf.org.eg/

Egyptian Tourist Authority

Mailing Address: 11 Abassiya Square, Cairo, Egypt.

Ministry of Trade and Industry

Mailing Address: 2 Latin America Street, Garden City, Cairo, Egypt

Commercial Affairs Phone: +(20) (2) 2792-1207 ● mfti@mfti.gov.eg

Website: http://www.mti.gov.eg/English/Pages/default.aspx

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