Although Egypt has been an attraction for tourists for many years due to the richness of historical sites, it was impossible for much tourism to occur thanks to the annual flooding of the Nile river.
In 1973, President Anwar Sadat led a victory over Israel in the October war resulting in Arab investments helping the reconstruction of the economy. This included building the Aswan dam which prevented flood risks, and the country becoming a popular tourist destination.
However terrorist attacks in the 2,000s globally reduced tourism worldwide. The 2004 bombings in Sinai tourist resorts, President Hasni Mubarak refusing US aid and the 2006 bird flu outbreak led to an economic collapse in 2009. Finally, the revolution in 2011 pushed tourist numbers down by 5 million from 14 million in a year.
As tourism is a major factor in the Egyptian economy, in 2012, prices lowered drastically to try to attract visitors. Due to the recent events, Egypt has increased its standards of tourism as luxury tourism has grown more popular. There has been a decrease in numbers visiting major sites because of the increased risk of terrorist attacks. There has been a decrease in European and Russian tourists and an increase in Indian and Chinese tourists.