Investor Presentaiton

Tourism Sector A Challenging Time for Egypt's Tourism Sector... Tourist Arrivals to Egypt | Millions 9/11 5.2 9 EGP devaluation Sharm El-Sheikh attacks 11.1 8.6 9.1 8.1 12.8 12.3 14.7 Jan. 25 uprising June 30 protests 11.5. Germany lifts travel warning Sharm El Shiekh plan crash 9.9 9.8 9.9 9.5 9.3 Taba and Nuweiba attacks Dahab attacks Mohamed Morsi elected president Taba attack 2011 Breakdown of Arrivals by Region of Origin | 4M 2016 8% 5% 9% 50% 28% 2012 2013 2014 European Countries Middle Eastern Countries African Countries Americas Asia & the Pacific Other Countries Egyptian Red Sea Tourism on the Tourism in Egypt • Tourist arrivals were down 49% y-o-y in 4M 2016 to 1.6 million tourists compared to 3.1 million tourists in the same period last year. • Total number of nights spent declined by 69% in 4M 2016 to reach approximately 9.3 million nights compared to 29.5 million nights in 4M 2015. • Average number of nights spent also declined to about 8.2 nights per tourist compared to 9.6 in the comparable period last year. Source: Ministry of Tourism, Tourism Investors Association, GAAFI, Egyptian Union for Tourism Chambers, CAPMAS, Central Bank of Egypt • • Capacity in the Red Sea governorate stands at 69,000 hotel rooms, 31% of Egypt's total hotel capacity of 225,000 Occupancy rate in Sahl Hasheesh remains higher than norms in Egypt and other cities on the Red Sea coast. • Government spending on infrastructure projects such as the USD 335 million expansion of Hurghada International Airport, as well as investments made by forward-looking companies such as ERC to build-up capacity and infrastructure in the area drive the higher-than-norm occupancy rates on the Red Sea coast. • Recently, the Egyptian government has bolstered security at airports across the country to reinforce Egypt's image as a safe place to visit, after the Russian plane crash in November 2015 took a severe toll on tourism figures that had gradually improved over 2014 and 2015. 36 Investor Presentation Q2/1H 2016 ERC Egyptian Resorts Compeny

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