Gift of islands could spur tourism with Egypt-Saudi bridge

Photo: SHARM EL SHEIKH, EGYPT - NOVEMBER 2, 2014: Egyptian boats in Red Sea gulf near Tiran island / Mgko_travel / Shutterstock.com

The recent gift by Egypt to Saudi Arabia of two strategic islands in the Red Sea at the entrance of the Gulf of Aqaba, Tiran and Sanafir, could be a boon for the ailing economies of both countries.

While much has been made of the islands’ military importance due to their proximity to shipping lanes used by Jordan and Israel, they are also a vital link between Egypt and Saudi Arabia. Tiran is pegged to anchor a proposed bridge between the two and there are also proposals for a possible railroad linking the two countries.

The idea of a bridge, the King Salman Bridge, between Saudi Arabia and Egypt has been kicked around for decades, but Egypt's "gift" of the islands in April brings it closer to reality—although the transfer has spurred protests and a legal challenge in Egypt. Neither country has announced specifics or a construction timeline.

Ahmad Ismael, an Egyptian tourism consultant, told reporters in April that should the bridge be built, he expected a 500 percent hike in the number of Saudi tourists to Egypt, which has long been a destination for Saudi expatriates and visitors. In 2015, 433,000 Saudis visited Egypt.

Overall, however, tourism to Egypt has been falling recently. In the first quarter of 2016, there were about 1.2 million visitors, sharply down from 2.2 million during the same period in 2015, according to the Egyptian Ministry of Tourism. The total for 2016 is expected to fall by 4 percent, with a projected 9.4 million visitors, according to the World Travel & Tourism Council.

In the short term, revenue will be further affected by the loss of the two islands, with dive shops in Sharm El-Sheikh anticipating fewer foreign scuba divers now that the islands are in Saudi waters. One prized tourist attraction for them was the wreck of a German ship that split in two in 1956 and now rests on a coral reef.

In the long term, however, the bridge could help Egypt.

Fazal Bahardeen, chief executive officer of CrescentRating, a company that ranks resorts, hotels and destinations for their halal- and Muslim-friendliness, said a bridge would strengthen ties between the two countries.

“Egypt has had a lot of trouble with inbound and outbound tourists,” Bahardeen said. “It will most likely encourage tourism between the two countries.”

Saudi Arabia’s acquisition of the islands, however, would increase the kingdom's diving destinations, said Ahmed Al-Saidi, manager at Dream Diver in Yanbu in Saudi Arabia. "It's too early to tell how the islands will affect tourism, but it opens up new opportunities," he said.

For Saudi Arabia, a bridge would further its economic revival plan to generate non-oil revenue by improving its tourism infrastructure to attract North African and GCC visitors.

The Commission for Tourism and National Heritage has approved building more museums, including one in Mecca dedicated to the history of Islam. The commission has also opened most of its Islamic heritage sites to Muslim visitors.

Saudi Deputy Crown Prince Mohammed bin Salman has also proposed that the government implement a "green card" scheme similar to the United States to give permanent legal residency to foreigners. Available only to Arabs and Muslims, it would eliminate the need for visas and provide easier access to Saudi Arabia from North Africa.

The Saudi Ministry of Labour has reported there are about 968,000 Egyptian expatriate workers in Saudi Arabia, who make up about 40 percent of the entire Arab workforce. The bridge could lead to a further increase in workers.

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