- Revenues down 64% from 2023
- Number of ships falls by 54%
- Saudi ports report fall in traffic
Suez Canal revenues saw a significant decline in May, driven by ongoing instability in the Red Sea, as reported by Egyptian media.
Revenues plummeted by 64.3 percent year-on-year, totaling $337.8 million. The number of ships passing through the canal decreased by 54 percent, with 1,111 vessels in May compared to 2,396 in May 2023.
Finance Minister Mohamed Maait indicated last month that revenues could drop by up to 60 percent due to global shipping disruptions. The first four months of the year saw nearly a 50 percent reduction in Red Sea shipping compared to the same timeframe last year.
In May, the average daily ship traffic through the Suez Canal was 22, down from 24 in April and significantly lower than the 51 ships per day recorded in May 2023.
The Ansar Allah group, commonly known as the Houthis, began targeting ships in the Red Sea last November, citing their actions as retaliation for the conflict in Gaza. This has had widespread repercussions across the region. The Saudi Ports Authority reported a decrease in maritime traffic to 986 ships in May, marking an 8 percent year-on-year decline.
Saudi Arabia also experienced a 10 percent year-on-year drop in container handling, with 647,839 twenty-foot equivalent units (TEUs) managed. Passenger numbers saw a reduction of approximately one-third.
Regional instability has also compelled the Egyptian government to adjust its 2024 tourism targets downward, from 18 million to a range of 15.5 million to 16.5 million visitors. Last year, Egypt welcomed a record 14.9 million tourists, nearly meeting its 15 million goal. In the first four months of 2024, Egypt saw 5 million tourists, the second-highest number on record for this period.
Tourism Minister Ahmed Issa mentioned to Sky News Arabia last month that despite the Gaza conflict, the sector is “growing at an unprecedented rate.” He highlighted a broad investment program aimed at enhancing tourism infrastructure.
Issa anticipates the addition of 25,000 new hotel rooms nationwide within the next 12 months, with the total number of rooms expected to more than double by 2028, from the current 200,000 to 420,000.
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