Egypt’s entertainment industry is one of the country’s primary sources of income, encompassing sectors that provide enjoyment and recreation to citizens, such as tourism, media, culture, sports, and art. According to official data, the revenue from Egypt’s entertainment industry in 2023 reached around $14.7 billion, with tourism taking the lion’s share, generating approximately $13.2 billion. Cinema revenues amounted to roughly 785 million EGP (around $26 million), marking a qualitative leap in Egypt’s cinema revenue over the last decade.
However, the industry’s profitability did not last, especially following economic downturns and the Gaza war crisis that began last October. Attacks by the Houthi group on ships in the Red Sea affected trade and shipping traffic through the Suez Canal. Additionally, the increase in the exchange rate of the U.S. dollar against the Egyptian pound led to rising prices for goods and services, including entertainment. This crisis in Egypt’s entertainment industry means that entertainment is no longer a priority for citizens struggling to make ends meet. For example, cinema revenue in the first third of 2024 did not exceed 222 million EGP, and tourism brought in around $6.6 billion in the first quarter of the year.
Recent indicators and data show that recurrent crises have driven up the cost of these services, deterring citizens who are financially constrained. This has led to risks impacting the Egyptian economy and targeting those employed in these sectors due to decreasing revenue.
The crisis is especially evident in newspaper production and distribution, as well as the publishing and distribution of books, according to Hisham Younes, a board member of the Egyptian Journalists Syndicate, speaking to Zawia3. He sees the crisis in print media as having multiple causes, including a lack of appealing content, which has driven readers away. The profession of journalism heavily relies on imported writing materials like ink and paper, making the situation worse with the rising dollar rate and successive economic crises, most recently the Gaza crisis.
According to the Central Agency for Public Mobilization and Statistics, there has been a decline in the issuance of print newspapers. Government data shows a decrease in the number of newspapers in Egypt from 142 in 2010 to 67 in 2019. Cairo led in print newspapers with 34 in 2019, followed by Giza with 17, Sohag with four, and Sharqia with three.
Younes adds that these factors have worsened the state of the newspaper industry compared to earlier times, affecting other cultural fields such as the Opera House, cultural sites in Egypt, museums, and decreasing visitor numbers.
The Central Agency for Public Mobilization and Statistics reports that visitor numbers to museums and cultural sites in the first quarter of this year were significantly lower than the 3.225 million visitors recorded in 2023. Social entertainment sectors, including cinemas, theaters, television, sports, music, restaurants, cafes, public parks, amusement parks, and nightlife spots, also saw a substantial decline in profits.
Film critic Essam Zakaria, director of the upcoming Cairo International Film Festival in November, says that Egypt’s national income and overall economic recovery contribute to the growth of the entertainment industry. In times of economic hardship, however, audiences are focused on securing daily income, leaving no financial surplus or time for cultural or artistic pursuits.
Zakaria tells Zawia3 that human nature craves entertainment, especially during difficult economic times, particularly for the unemployed, who have more free time than those with jobs. The variety of entertainment options in Egypt now includes both free and paid options, which has contributed to a drop in theater and other artistic performances. With technological advancements and the emergence of television, new competition arose for cinema and theater, prompting filmmakers to compete in production scale and screen size. The cinema industry continues to face this competition.
Zakaria states that despite changes, it is unlikely that entertainment options will disappear. “We still have live theater, which remains one of the oldest forms of entertainment, even as new forms emerged, like cinema and television, which are still around. Live performance has a unique appeal with actors present in front of the audience, especially in our current virtual era. This has led audiences to cling to theater,” he adds, predicting a resurgence in theater attendance in coming years. However, he notes a recent decline in theater revenue in Egypt, with commercial theater shows not surpassing 120,000 EGP (about $2,500) per night even as recently as 2018. He attributes this to the general public’s depressive outlook due to ongoing crises.
Zakaria notes that the level of entertainment in Egypt is influenced by economic crises and the Gaza war, which have shifted public sentiment, resulting in a persistent decline. Consequently, Egyptian drama and theater producers are turning to international markets, like Saudi Arabia’s Riyadh Festival, to make up for losses, noting that unplanned production has weakened Egypt’s entertainment industry. Egypt has seen a reduction in companies and institutions dedicated to conducting scientific, economic, and creative studies on the entertainment, cinema, theater, and culture sectors.
Zakaria continues, “It would have been possible to use the Gaza events to showcase Palestinian-themed shows highlighting the cause. We have had successful experiences with similar events in the past, but such initiatives require market research to determine timing and circumstances, which is lacking in Egypt.”
Magdy Saber, a former ballet dancer and head of the Cairo Opera House, believes that the entertainment industry in Egypt has been affected by the economic crisis, but there are other solutions. He notes the correlation between economic growth and entertainment growth, explaining that entertainment extends beyond amusement parks and various museums to include culture, newspapers, books, and more.
Saber notes that Egyptian authorities have supported the Opera House and its activities, particularly during the pandemic. Despite high-quality shows, audiences often turn away, while less innovative productions attract large crowds. He highlights the varied tastes of Egyptian audiences.
Saber also says that ticket prices might deter people from attending, although some still choose shows priced as high as 3,000 EGP ($62.50) per ticket, bypassing shows that cost only 50 EGP ($1).
Supporting Saber’s point about rising ticket prices at the Opera House, a detailed study reveals a noticeable increase in the cost of attending Omar Khairat’s concerts. Ticket prices for his shows ranged from 460 to 960 EGP in 2022, but in 2024, prices rose to between 1,010 and 1,710 EGP. This significant increase in prices led many to reconsider attending Opera House events, pushing them to seek less costly alternatives.
Regarding cafes and the link between mental well-being and entertainment, economist Medhat Nafea notes that entertainment profits are not entirely tied to the economic crisis but are instead affected by how the managing institutions operate. Profit is related to two factors: audience behavior, particularly in times of crisis, and their psychological state, as well as technological advancements like social media. Another factor is the shifting economic situation, as people become more focused on work to meet the demands of economic change.
In his discussion with us, Nafea emphasizes that the content of cultural or artistic productions is crucial to attracting audiences, which requires thorough research and public opinion surveys. He attributes the decline in print journalism to its rising cost amidst economic hardships and the availability of cheaper information sources on various electronic platforms accessible on mobile devices.
The economist explains that citizens’ visits to cafes and restaurants are linked to unemployment. There is a theory suggesting that as unemployment rates rise, so does patronage at cafes. However, this theory is not entirely accurate; rather, it reflects a cultural tendency for social interaction. Despite the closure of numerous cafes across Egypt, their cultural significance endures, and patronage remains steady even amid rising unemployment.
Between 2021 and the second quarter of 2024, Egypt experienced fluctuating unemployment rates. The events of October 7 led to the closure of many businesses and layoffs, adding pressure to the job market. Although the government’s decision to raise the minimum wage was intended to improve workers’ living conditions, it also increased companies’ burdens, prompting workforce reductions. Despite these realities, official statistics from the Central Agency for Public Mobilization and Statistics show a consistent decline in unemployment rates, from 7.4% in 2021 to 7.2% in 2022, 7% in 2023, 6.7% in Q1 2024, and 6.5% in Q2 2024. This discrepancy between lived experiences and official data raises questions about the accuracy of these statistics and how they are calculated.
Publishing Industry Faces Hardships
Author and publisher Hussein Osman, owner of Resha Publishing and Distribution, tells Zawia3, “We cannot link the decline in book sales directly to the Gaza war, as the downturn began a year and a half ago due to economic challenges, including currency fluctuations and the rising dollar rate. Book printing and publishing rely on paper and ink imported using foreign currency, which affects their prices in Egypt’s publishing and printing market. This has led the public to prefer buying books through various digital applications at a lower cost, where a monthly subscription can equal the cost of one printed book.”
He adds that the economic crisis initially did not impact e-book purchases, but later, platform owners raised subscription fees, significantly reducing demand. The crisis has had a significant effect on book sales, impacting printed and electronic books alike. Osman notes that the profit margin does not justify the printing costs, resulting in limited print runs.
Millions of Egyptians (both direct and indirect workers) work in the entertainment industry but are now facing mounting challenges as these sectors are impacted by Egypt’s economic and regional crises. They now wonder how to secure their economic rights and avoid job losses.