September 2001. By October of that year, tourism had dropped
by nearly 50 percent. That was on top of already steep declines
following an escalation of tensions between Israel and Pales-
tinians beginning in August 2000. Following the 2001 attacks,
hotels, airlines, and cruise ships cut prices dramatically and
sought more budget-minded tourists, especially from Russia.
Oil is a more reliable, although finite, resource, and Egypt
has only modest petroleum reserves. And oil, too, is subject to
the whims of global events. Most of the country’s oil is around
and below the Gulf of Suez, especially along the west coast of
the Sinai Peninsula (that is one reason President Sadat wanted