Economic prospects for the blue economy in Egypt

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Date: 09 - 08 - 2024

Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

The Egyptian coastline extends along the Mediterranean and Red Seas, with a length of 3,200 km, giving it enormous economic potential and unique opportunities for achieving sustainable development. In recent years, Egypt has invested approximately 2 billion pounds in protecting the shores of the Mediterranean Sea, with the aim of protecting coastal cities from sea water and the effects of climate change. However, truly benefiting from this potential requires focusing on other dimensions, such as developing infrastructure, encouraging sustainable tourism, and stimulating the fishing and renewable energy sectors.
Infrastructure development is vital to improve visitor experience and make Egyptian beaches more attractive. This includes creating the necessary facilities and services for tourists, and building integrated tourist resorts that provide a variety of services, such as improving tourist facilities and diversifying offers, such as water sports and cruises, which attract more tourists and economic revenues. It is estimated that the beach tourism sector could contribute up to 11% of the national GDP by 2030.
Ecotourism also represents a promising path for sustainable development. This type of tourism is based on protecting coral reefs and marine life, and attracting tourists interested in snorkeling and diving. Establishing marine natural reserves contributes to enhancing marine environmental diversity and increasing awareness of the importance of preserving the environment. The Red Sea, with its vast coral reefs, currently attracts thousands of eco-tourists annually. Environmental sustainability efforts in Egypt have witnessed a noticeable increase, with more than 15 marine protected areas having been established so far.
Another dimension is cultural tourism, which provides untapped opportunities to diversify the economy. Organizing cultural and artistic events on beaches, such as festivals and shows, and creating museums to display artifacts can attract new categories of tourists. Sea tours to archaeological and historical sites further enrich the cultural tourism experience. Research indicates that cultural tourists spend significantly more money than regular tourists, which can increase economic revenues by up to 30%.
The fishing industry is also a vital component of the coastal economy. Modernizing fishing equipment and techniques can increase productivity and create new job opportunities. Ensuring fish quality through strict safety standards, establishing fish processing plants and diversifying products can open new export markets. The fisheries sector currently contributes about 3% of GDP, and modernization efforts could boost fish production by 20%.
Aquaculture represents another area of ​​growth. Developing fish farms can increase fish production, meet local demand, reduce dependence on imports, and provide fresh fish at affordable prices. This sector already represents more than 75% of Egypt’s total fish production, and with strategic investment, it can expand by 15% annually, thereby supporting sustainable food systems and contributing to the national economy.
In light of the global interest in clean energy, renewable energy initiatives along the Egyptian coast will open new paths for economic growth. Establishing solar power plants to provide clean energy to tourist resorts and residential areas would reduce dependence on fossil fuels. Harnessing coastal winds for wind power plants can produce environmentally friendly electricity and attract new investments. Egypt aims to generate 42% of its electricity needs from renewable sources by 2035, and coastal areas as ideal locations for wind energy projects could generate more than 3,000 megawatts; This energy is sufficient to provide electricity to about 2.5 million homes per year.
What cannot be disputed is that improving the maritime and land transport infrastructure has become essential to national plans for comprehensive development. Increasing the capacity of seaports will support maritime trade and create new job opportunities. Establishing sea routes linking coastal cities will facilitate the movement of passengers and goods and stimulate domestic tourism. Modernizing and developing ports would increase cargo handling capacity by 50%, while improving transport links could support local tourism by 25%.
To achieve the desired economic benefits from Egyptian beaches, policy makers must update their national plans to include investment in infrastructure, improving facilities and services, and facilitating access to coastal areas. But the real challenge lies in how to achieve this balance between economic development and environmental protection. Can policy makers adopt an approach that combines sustainable growth with the preservation of natural and cultural heritage? Thinking about the future of Egyptian beaches requires a long-term vision that takes into account the exploitation of resources in a responsible and sustainable manner that ensures the continuation of economic benefits without compromising the beauty and safety of the natural environment.