The Effect of the Egyptian Pound Exchange Rate Change on the International Tourist Demand to Egypt

Anter, M.; Nagy, Sara El

doi:10.21608/ijhth.2019.31987

Cited by 5 publications

(13 citation statements)

References 11 publications

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“…The reduction in the value of the national currency against foreign currencies and the increase in the exchange rate are factors affecting the balance of payments for tourism, at least in the short term, whereas the devaluation of a country's currency makes inbound international tourism less expensive (El-Sherbini, 2018). Furthermore, the depreciation of the Egyptian pound against the dollar has affected the prices of goods, services, and tourism products, as well as the international demand for tourism in Egypt, as the Egyptian tourist destination has become cheaper compared to other destinations (Anter and El-Nagy, 2018). Furthermore, the increase in the value of a country's currency made domestic tourism more expensive and led to a decrease in domestic tourism flows (El-Bagouri, 2016).…”

Section: The Effect Of the Exchange Rate Liberalization On The Hospitality Industry In Egyptmentioning

confidence: 99%

“…According to Gómez et al (2019), a decline in vacationer expenditure accompanied the decrease in the vacation duration in Spain, discovered that the number of days spent on a trip had a negative influence on daily visitor expenditures, for example, a 1% increase in stay, results in a 0.31 percent increase in customer expenditure. Additionally, Anter and El-Nagy (2018) claimed that tourism costs are an explanatory variable for a tourist's destination because the Egyptian tourism destination became more cheaper due to the decrease in Egyptian pound and this made an increase in the international tourism and the Egyptian visitors who perceive a destination as luxurious spend more money than those who do not, and they can evaluate the current price of a product or service and compare it to a variety of prices in their memories…”

Section: B Destination Related Factorsmentioning

confidence: 99%

“…Customers' spending was assessed during the Egyptian pound's exchange rate liberalization, and the previous results suggested their disapproval and unacceptance and there is a negative effect of exchange rate liberalization on the Egyptian customers spending. this is consisted with El-Badawy (2017), because of the high prices of imported goods, which lead to the high cost of production and services, the exchange rate push towards imposing new taxes that affects the prices and the purchasing power for the domestic tourists and a consequence of the high price of tourism programs led to a clear decline in the number of travelers with the slowdown in tourism activity Moreover, fluctuations in the exchange rate indicate risks to tourist destinations, causing tourists to be hesitant to visit or cancel their trips to the area affected the prices of goods, services, and tourism products and reflect in a decrease in the purchasing power of Egyptian tourists (Anter and El-Nagy, 2018).…”

Section: Normality Of Data Distributionmentioning

confidence: 99%

“…Therefore, the hospitality industry is considered as a significant branch that influences the country's economic development by providing a variety of services for people who are away from homes, such as lodging, food, and beverages, as well as bringing a high level of income to the country (Njoya, 2020). Moreover, the exchange rate mechanism is one of the most important tools of economic policy and is considered the central element in the financial  Contact Mahmoud Abdel-Aziz at: Mahmoud.abdel-aziz@mu.edu.eg economy of many countries around the world, also the exchange rate is the difference between the parity rates between the two currencies (Anter and El-Nagy, 2018). During the last two decades, many small open economies have officially abandoned their fixed exchange rate arrangements to allow their currencies to float (Alstadheim et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…These fluctuations in currency rate and the economic state are the most significant variables impacting the hotel industry when the country's currency depreciates, inbound tourism becomes less expensive resulting in a rise in tourism flows to that country (El-Gazar, 2018). On the other hand, the liberalization of the exchange rate led to an increase in the dollar price against the Egyptian pound, additionally, affected the prices of goods, services, and tourism products (Anter and El-Nagy, 2018). As a result, it has been noticed that the liberalization of the exchange rate has influenced the occupancy rate and spending rate due to price increases (Soliman and Shaded, 2018).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Customer Spending in the Egyptian Hotels After the Exchange Rate Liberalization

Rady¹,

Elezz²,

Ameri³

2021

International Journal of Heritage, Tourism and Hospitality

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Section: The Effect Of the Exchange Rate Liberalization On The Hospitality Industry In Egyptmentioning

confidence: 99%

Section: B Destination Related Factorsmentioning

confidence: 99%

Section: Normality Of Data Distributionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Customer Spending in the Egyptian Hotels After the Exchange Rate Liberalization

Rady¹,

Elezz²,

Ameri³

2021

International Journal of Heritage, Tourism and Hospitality

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The Impact of Price Fairness on the Perceived Value and Customer Satisfaction Under the Exchange Rate Change in Hotels in Egypt

Rady,

Abdelaziz,

Touni

2023

Journal of Association of Arab Universities for Tourism and Hos

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Economic policies and exchange rate fluctuations significantly impact the hotel industry. These changes force hotels to focus on providing value based on customer purchasing power. Customers compare prices with the benefits gained from products or services provided. Therefore, price fairness is crucial to determining value and customer satisfaction. Specifically, when the value of the product or service matches the price. Based on the current change in the exchange rate and its impact on prices and customers' evaluations of products and services in hotels, and a lack of previous studies that dealt with the topic in Egypt. The research developed and examined a conceptual model grounded on three theoretical perspectives; equity theory, dual entitlement theory, and expectation-disconfirmation theory. The proposed model investigated the relationship between price fairness, perceived value, and customer satisfaction under the exchange rate change in hospitality industry in Egypt. Both paper-based questionnaires and web-based questionnaires were distributed to a stratified random sample of 384 guests in three, four, and five-star hotels in the Red Sea and Luxor governorates. The results show that the change in the Egyptian pound exchange rate increased food and beverage prices, and accommodation prices in hotels, moreover had a positive impact on the tourists' decision to purchase. Additionally, price fairness affects both the perceived value (functional, emotional, social, and value for money, and customer satisfaction. Moreover, perceived value acts as a mediator in the relationship between price fairness and customer satisfaction. This research contributes to filling a knowledge gap and offers practical implications. https://jaauth.journals.ekb.eg / customer satisfaction under the exchange rate change in hotels in Egypt, (4) investigate the impact of perceived value on customer satisfaction under the exchange rate change in hotels in Egypt, (5) explore the mediating role of perceived value in the relationship between price fairness and customer satisfaction under the exchange rate change in hotels in Egypt, (6) provide recommendations that may contribute to filling the knowledge gap and offer practical implications. Literature Review 2.1. Exchange Rate ConceptThe exchange rate, defined as the number of foreign currency units required to convert one domestic currency unit, serves as a crucial determinant of the foreign currency's value relative to the home country's currency (Katmas & Indarningsih, 2022;Soukotta et al., 2023). Moreover, the exchange rate establishes the value of foreign currency against the currency of the home country (Alstadheim et al., 2021). Furthermore, the exchange rate is described as "the connection between two connected currencies or the value of one currency for conversion to another" (Lezar, 2023, p. 89). The International Monetary Fund (IMF) prepared a rigorous methodology to calculate the weighted average exchange rate, through analyzing the proportion of transactions conducted at variou...

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The Impact of Exchange Rate Liberalization on The Performance of Egyptian Hotel Industry: An Analytical Study

Abdelmawgud¹

2021

المجلة الدولیة للتراث والسیاحة والضیافة‎

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Hotel industry is affected by economic variables, whether local or international. The liberalization of the exchange rate is considered one of the most important economic variables that occurred in Egypt in the year of 2016. Therefore, this research aims to study the impact of exchange rate liberalization on the performance of hotel industry in Egypt. The policy of liberalizing the exchange rate has led to an increase in the value of the US dollar against the Egyptian pound. In addition, total tourist revenues have increased and total number of tourists, hotel occupancy rate and total hotel nights has decreased. Moreover, t-test showed that there are no statistically significant differences in the indicators of the total number of tourists, total tourist revenues, total hotel nights and hotel occupancy rate, whether before or after the exchange rate liberalization policy. Using the binary logistic regression test, the indicators of the average exchange rate, total number of tourists, total hotel nights, and hotel occupancy rate are not considered a predictor of an increase in the rate of tourism revenues in Egypt. Accordingly, this research provides an integrated statistical analysis of the impact of the exchange rate liberalization on hotel industry, and thus, this research helps decision makers in official tourism establishments and hotel managers in making decisions, setting policies or scenarios, and building strategic plans that support the economic value of the hotel industry in Egypt.

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The Effect of the Egyptian Pound Exchange Rate Change on the International Tourist Demand to Egypt

Cited by 5 publications

References 11 publications

Customer Spending in the Egyptian Hotels After the Exchange Rate Liberalization

Customer Spending in the Egyptian Hotels After the Exchange Rate Liberalization

The Impact of Price Fairness on the Perceived Value and Customer Satisfaction Under the Exchange Rate Change in Hotels in Egypt

The Impact of Exchange Rate Liberalization on The Performance of Egyptian Hotel Industry: An Analytical Study

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