Customer Spending in the Egyptian Hotels After the Exchange Rate Liberalization

Document Type : Original Research Articles



The exchange rate liberalization greatly affects the Egyptian tourism industry, customer spending is the main driving element that continues to encourage tourism expansion since it is considered a tool for economic growth, and it is essential to understand the customer spending. The purpose of the research is to study the impact of exchange rate liberalization on customer spending in Egyptian hotels. A mixed technique (quantitative and qualitative) is used to achieve the research objectives. To collect data, a questionnaire targeted Egyptian and foreign tourists, and interviews conducted with hotel managers and tourism experts in the four tourist cities, Hurghada, Marsa Alam, Safaga, and Luxor were employed from March to May 2021 (the months when the field work was applied).The research results found that there is an increase in the value of the Egyptian pound and the level of spending has been severely impacted due to high costs and the price of products. There is a statistically significant effect of the exchange rate liberalization on the customer spending of Egyptian guests in hotels, as there is a negative impact that has led to a decrease in the level of spending of Egyptian tourists because of the depreciation of the Egyptian pound against the dollar.


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