• Egyptian banks are offering specialized travel loans up to EGP 9 million as summer vacation costs surge across coastal destinations.
• Interest rates on travel loans vary by bank, with repayment periods extending up to 8 years to attract more borrowers.
• Rising tourism prices, driven by inflation and demand, are pushing Egyptians to finance vacations through bank loans for affordability.
  

Egypt is a prime summer destination for many worldwide, however prices are on the rise due to high demand and inflation. It is becoming increasingly expensive to travel and book a stay at coastal destinations.

As prices rise and Egypt enters its peak summer holiday month, several banks are competing to attract new customers by launching specialized loan programs for travel and vacations.

Up to EGP 9 Million

Alarabiya Business reports that according to its survey the Commercial International Bank (CIB) offers the highest credit limit for travel loans. Moreover, it offers up to EGP 9 million with a repayment of up to 8 years. Additionally, it reduced the interest rate on travel and vacation loans up to 26% annually.

AlBaraka Bank increased its loan maximum from EGP 200 thousand to EGP 1 million with a 3 year repayment period. Additionally, Banque Misr raised its vacation and tourism loan limit from EGP 80 thousand to EGP 300 thousand. Faisal Islamic Bank of Egypt also offers a maximum loan of EGP 750 thousand with a declining interest rate of 32.25%, repayable over 5 years. 

Meanwhile, Banque du Caire covers 100% of the trip cost, whether domestic or international. This is on the condition that the client transfers their salary and books through a registered travel agency that provides verified quotes.

High Vacation Costs

In a statement to Alarabiya Business, Tarek Shalaby, Head of Tourism Investors Association in Marsa Alam, said that the cost of tourism services has doubled in recent years. This is due to rising costs of materials, services, and transportation.

In fact many cannot keep up with the price unless they take travel loans in order to spread out the payments.  Shalaby further notes that a single night at a high-end hotel or chalet could cost up to USD 2K depending on service level and luxury.

The advent of the Egyptian banking sector offering travel-specific loans is an attempt to boost demand for both domestic and international trips. Amary Abdel Azim, former head of the Tourism and Aviation Division at the Chamber of Commerce, said in a statement to Alarabiya that travel expenses have been shocking for the average consumer.