Journal of Faculty of Tourism and Hotels, Fayoum University, Vol. (10), No. (2/2), September, 2016

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1 Egyptian Immigrants & VFR Tourism: An Empirical Study on Determinants, Opportunities & Challenges Amany Nabil Beshay Faculty of Tourism and Hotels, Alexandria University Abstract Statistics have revealed that there are millions of Egyptian immigrants permanently residing outside of Egypt and spread all over the globe. Those immigrants have direct and extended families and friends living in Egypt. In addition to maintaining good relationships over the years with their families and friends in Egypt, most of these immigrants seem to have a strong emotional attachment to their homeland. In Egypt as well as worldwide, it is evident that permanent migration and tourism are interconnected. Visiting friends and relatives (VFR) tourism refers to travelling with the major purpose of visiting friends and/or relatives as one of the primary tourism motivators. While VFR travel is one of the largest and most significant forms of tourism, it remains well-known but not well-studied. This might be due to the underestimated economic significance of migration-induced VFR tourism, as well as the common misconception that VFR is a nonprofitable tourism pattern, which made it one of the least researched areas in tourism worldwide. This is particularly true in the Egyptian context as well. Realizing VFR s contribution to the broader tourism market and to Egypt in particular, this paper attempts to reveal the significance of the VFR market with application on Egyptian immigrants. The paper carries out an empirical study on Egyptian immigrants in North America, Europe and the Arabian Gulf countries. The purpose of the study is to reveal the travel patterns, determinants, opportunities and challenges concerning VFR tourism by Egyptian immigrants. The results of the study also provide an understanding of the importance and future potential of the VFR market to Egypt, together with the opportunities and challenges that are attached to it. Key Words: VFR Tourism - Egyptian Immigrants - travel patterns - Visiting friends and relatives Introduction The desire to visit friends and relatives (VFR) is a significant influencing factor over a large proportion of all tourism trips worldwide. The positive growth pattern of the VFR market is driven by some vital market factors. In a world of increasing mobility, it is not surprising that migrants will travel between their new and old countries. In spite of the logical relationship between migration and visiting friends and relatives tourism (VFR Tourism, hereafter), their comparative patterns, determinants and strengths have not been studied consistently over time (Dwyer et al., 2014). The common misconception of VFR, as a non-profitable market segment, and the fact that VFR appeared as one of the least researched areas worldwide as well as in Egypt have been the keystone behind embarking on this study. The objectives of this research are analyzing the determinants and travel patterns of Egyptian Immigrants travelling to Egypt, as well as examining the significance of the VFR market segment to the Egyptian tourist market and understanding the opportunities & the challenges related to VFR tourism in Egypt. In order to reach these objectives, the study attempts to answer the following research questions; Do Egyptian immigrants travel to Egypt mainly for visiting friends and relatives? What are the determinants that affect their travel decision? What are their travel patterns in terms of frequency, length of stay, accommodation and expenditures? Is there an association between the country of residence and the length of stay or the frequency of travelling to Egypt? 517

2 Literature Review Visiting friends and relatives (VFR) tourism, denotes "travelling with the major purpose of visiting friends and/or relatives"(asiedu, 2008, p.609). Thus, "The culmination of tourism that involves some visit with a friend or relative has broadly been termed visiting friends and relatives tourism, or VFR" in various academic articles and practitioner reports (Griffin, 2013, p.782). However, arriving to an agreed-upon definition for VFR tourism has been a difficult task among researchers. This is primarily due to the dual characteristic role of VFR tourism, being a motivating factor as well as a touring activity which makes it a unique tourism typology but nevertheless a confusing one (Moscardo et al., 2000; Lee et al., 2005). For the purpose of this research, the researcher adopts Backer s definition that VFR tourism is a form of travel "involving a visit whereby either (or both) the purpose of the trip or the type of accommodation involves visiting friends and/or relatives" (Backer, 2007, p. 369). This is due to the fact that assuming that VFR tourists are always using friends and relatives homes for accommodation has widely misled the understanding of the patterns related to VFR tourism. In fact, many VFR tourists choose to use commercial accommodation like hotels, resorts or rental apartments (Leiper, 2004). However, their main purpose of travel remains VFR. This is why Backer's definition was chosen as it comprises both notions. In 1990, there were 74 million international trips for VFR purposes, rising to 154 million in 2001, representing a growth rate double that of leisure, recreation and holidays tourism numbers (Larsen et al., 2007). In 2010, there were 254 million international trips for VFR purposes accounting for more than one quarter of all international trips including business tourism (UNWTO, 2011). This clearly indicates the significance of the VFR market segment. Despite this constantly rising market share of VFR tourists, most national tourism statistics do not identify VFR as a separate category (Dwyer et al., 2014). Even in the case of UNWTO statistics, VFR forms part of a complex combined purpose of travel category which includes VFR, health, religion and other. For the year 2010 the category VFR, religion, health, and other category was estimated to comprise 27% of international tourism flows worldwide (UNWTO, 2011). While VFR travel is one of the largest and most significant forms of tourism, and in spite of its relative size and importance as a segment of the travel market, many believe that the impact of VFR tourists is underestimated by hospitality and tourism organizations (Morrison et al., 1999). This has been reflected on the fewer research topics dealing with VFR tourism compared to other tourism typologies. Thus, VFR tourism remains a wellknown tourism typology but not a well-researched one. This is mainly due to the underestimated economic significance of VFR tourism, as well as the widespread misconception that VFR is a non-profitable tourism pattern, which made it one of the least researched areas in tourism worldwide. Overall, the two major perceived disadvantages that were always attached to VFR tourism were the lack of use of commercial accommodation facilities and low expenditure levels of VFR tourists (Morrison et al., 1999). However, the inaccuracies of some of the afore-mentioned misconceptions that have led to the neglect of VFR have recently been exposed by many researchers (Backer, 2007 ; Morrison et al., 1999; Seaton, 1994). Despite the above-mentioned claims about the economic benefits of VFR tourism, no one can neglect the perceived benefits of the VFR market which include substantial economic impacts on the local economy including multiplier effects as VFR tourists utilize local accommodation, restaurants, special events and attractions, and contribute positively to local economies (Paci, 1994). VFR tourists have the potential for repeat visits. Hence in 518

3 their travel life-cycle, the VFR traveler can contribute a considerable spend (Ramachandran, 2006). Other benefits include the use of word-of-mouth communications, large size of the VFR market and longer lengths of stay (Morrison et al., 1999). The present trend of VFR tourists shows that they utilize commercial lodging, restaurants, tourism attractions, commercial recreation facilities, and national airlines which inject new tourism money into the economy (Ramachandran, 2006). Other benefits identified were getting more people to visit, getting local people more involved in tourism and heightening their awareness of things to do, causing less strain on local accommodation facilities and generating visits on a year-round basis (Morrison et al., 1999). The positive growth pattern of the VFR market is driven by some crucial market factors. In a world of increasing mobility, it is not surprising that immigrants will travel between their new and old countries. Immigrants leave their homeland for many reasons such as career development, higher standards of living, and economic improvement (Stodolska and Santos, 2006). However, living abroad does not mean that immigrants have decided to abandon their national and cultural identities. In fact, immigrants tend to keep their cultural identity by maintaining a connection with people or places related to their ethnical culture (Io, 2015). McCann et al. (2010) argued that international migration and VFR are intertwined; to some extent, international migration promotes travel back to visit the home country. These visits allow migrants to retain their social relationships with their family and friends who live in their places of origin at a regular interval. A few studies have explored immigrants demand for visiting their homeland (Garrido, 2011; Maruyama & Stronza, 2010). It was found that immigrants visited their homeland because they perceived themselves having a personal connection to their ancestral land, and by visiting their ancestral land, immigrants gained a sense of solidarity with people who still live there and a sense of success in settling in their present residential country (Maruyama & Stronza, 2010). Tourism researchers have widely acknowledged the connection between more and less permanent forms of migration (Oigenblick & Kirschenbaum, 2002; Williams & Hall, 2002). Prospective migrants sometimes set off for their destination intending to relocate permanently, whereas others undertake shorter stays, but then extend their stay, sometimes permanently. Employees who are relocated overseas for a defined period also fall into the temporary migrant category (Dwyer, et al., 2014). However, both categories of migrants tend to keep their connections with friends and relatives in their homelands. Thus, both permanent and temporary migrants are equal candidates for VFR tourism. The characteristics and travel patterns of immigrants travelling as VFR tourists have been subject of a few studies (Asiedu, 2008; Seaton & Tagg, 1995; Balli et al., 2016). These studies addressed characteristics like length of stay, frequency and timing of trip, party size and other patterns. Concerning the length of stay, the findings generally are mixed and as demonstrated by Seaton and Tagg (1995). Travelers in this category tend to exhibit both long stay and short break holidays. Lee et al. (2005), for example, have indicated that more VFR tourists (25.1%) stayed for significantly longer periods than business pleasure travelers (24.6%) and pleasure/vacation (16.5%) travelers. With reference to frequency and timing of trips, VFR tourism has notably shown to display a high level of repeat visitations (Asiedu, 2008). Seaton and Palmer (1997) have revealed through their studies that VFR travel is more equally distributed throughout the year and actually peaks within the period when there are generally low volumes of travel by tourists especially during December. Balli et al.(2016) have confirmed that the number of trips back to homeland is inversely related to distance but positively related to income. This means that the longer the distance 519

4 of the immigrant from his homeland, the lesser the frequency of his travel for VFR purposes and vice versa. On the other hand, the larger the income of the immigrant, the more frequent he can travel for VFR purposes. The findings from the above-mentioned studies will be compared with results from the empirical study. Methodology In order to analyze determinants and travel patterns of Egyptian immigrants to Egypt and examine the significance of the VFR market segment to the Egyptian tourist market, an online questionnaire was chosen as the survey instrument for collecting the data to answer the research questions. Data was analyzed statistically using SPSS. A web-based survey was distributed among Egyptian immigrants living abroad. The survey was specifically targeted towards Egyptians living in USA, Canada, Europe and the Arabian Gulf Countries, either as permanent immigrants or as temporary immigrants (as is the case mostly with Arabian Gulf Countries). The reason behind specifically choosing these countries is that they encompass the major areas where Egyptian immigrants currently live. Participants were contacted during January and February 2016 through social media groups dedicated for Egyptian communities living in the above-mentioned areas. The groups were carefully chosen by the researcher. Mainly, administrators of closed immigrant groups were contacted to post the survey link on their groups as these groups have strict rules in accepting only Egyptian immigrants who are staying permanently in the selected countries or living temporarily in the country for extended periods of time due to work and other conditions. The researcher explained briefly the purpose of the research in the introduction of the survey and asked Egyptian immigrants to answer the survey questions. Both permanent and temporary immigrants were allowed to take the survey. The survey was comprised of profile questions reflecting the various demographic profiles of the respondents. Detailed questions followed in relation to their travel patterns to Egypt including purpose of visits, frequency, length of stay, kind of accommodation, expenditures and activities undertaken during the visit A total of 655 complete questionnaires were received. In spite of the fact that social media surveys are known to yield a somewhat lower response rate, the researcher has distinctly observed that Egyptian immigrants (members of social media groups for Egyptian communities abroad) had a lot of enthusiasm to participate in such a survey related to Egypt. This reflects the strong ties that Egyptian immigrants have with their homeland and anything associated with it. Results & Discussion Table 1 summarizes the demographic profile of the survey respondents. Gender Male Female Total Age Table 1: Demographic profile of the survey sample Frequency Percentage %

5 and above Total Annual Income 120,000 to 150,000 USD ,000 to 160,000 USD ,000 to 200,000 USD ,000 to 80,000 USD ,000 to 120,000 USD Less than 40,000 USD More than 200,000 USD Total Table 2 shows the various areas of residence of the survey sample. This is indicates where the respondents are currently living. Table 2: Area of residence of the survey sample Frequency Percentage % Canada Europe Gulf Countries Other USA Total Figure 1 illustrates the frequency of travelling to Egypt by the survey sample. Figure 1: Frequency of Travelling to Egypt once / 3-5 y 11% once / 5 y or more 8% never visit Egypt 7% 2-3 times/year 16% once/ 2 years 17% once/ year 41% 521

6 From figure 1, we can observe that more than 50% of the sample visit Egypt once per year or more often. 17% percent of the sample said they visit Egypt once every two years. Only 7% of the sample said that they never visit Egypt anymore. When asked about the reason behind that, it was mainly because they have no family or friends left in Egypt. Some also could not travel due to extensive work obligations. Others mentioned political and personal reasons behind not visiting Egypt. On the other hand, it can be easily detected here that Egyptian immigrants are mainly repeat visitors as indicated in figure 1, thus they contribute a considerable spend over time to the local economy. This finding is in-line with the literature review. Figure 2: Usual Length of stay in Egypt More than 4 weeks 20% One week or Less 6% 2 weeks 30% 3-4 weeks 44% From figure 2, it is apparent that the length of stay of the survey sample tends to be a long one. Only 6% of the sample said they visit Egypt for one week or less. Around 75% of the sample said their visit is between two to four weeks. This is in agreement with the literature review that suggests that VFR tourists have a longer stay in the destination compared to other tourism typologies. Thus, more spending and multiplier effects are introduced to the local economy. Table 3: Average spending per stay in Egypt Frequency Percentage% Less than 500 $ $ $ $ $ $ $ $ & more Table 3 demonstrates the average spending of the survey sample per stay in Egypt in US dollars. It is evident from the above numbers that around 30% of the sample spend above 3000 USD per stay which indicates that they are high spend segments, exceeding by far the average spending of normal tourists. 522

7 Figure3: Main purpose of visit to Egypt Figure 3 illustrates the main purpose of visit of the survey sample. Visiting friends and relatives (VFR) comes as the number one purpose by far. in addition to that, other secondary purposes are revealed like taking children to visit their homeland and to attend special family occasions like weddings and family reunions, as well as spending a relaxing holiday in a hotel or a resort. Work/ business comes the least as a purpose for Egyptian immigrants staying in Egypt. Thus, it is evident that VFR is the main purpose of visit by Egyptian immigrants. Furthermore, the survey sample was asked about the priority of specific activities during their stay in Egypt and a weighted average was calculated for each activity. The top activity with the highest priority was spending time with friends/relatives (4.55), secondly, dining out at favorite restaurants (3.43), then attending special family occasions (3.27), followed by spending a holiday at a hotel/resort (3.17). After that comes buying Egyptian products and souvenirs (3.04), then sightseeing (2.28), followed by attending theatrical performances, cinemas or concerts (2.28) and last work or business related activities (1.62). Figure 4: Determinants Influencing Visiting Egypt Family occasion/ reunion Season of the year Travel Costs Security situation in Egypt Homesickness Better Climate

8 Figure 4 represents the main determinants that influence the travel decision to Egypt. Family occasions and reunions come as the first determinant (3.65), followed by the season of the year (3.57) which reflects the possible vacation opportunities. Travel costs is also one of the important determinants of the travel decision to Egypt (2.91). In addition to that, the security situation in Egypt represents a valid determinant to many (3.07). Homesickness follows (2.91) and last better climate (2.84). The survey sample was asked about the nationality of the passport they use when entering Egypt. 76% said they enter Egypt with their Egyptian passport, while 24% said they enter with their foreign passports. This information is of great importance as it reveals that those Egyptian VFR tourists visiting Egypt are in most cases counted as Egyptians at all ports of entry. However, the researcher argues that Egyptian VFR tourists should not be counted as normal Egyptian citizens but rather as tourists as they possess all the characteristics of tourists, including the high-spend, visiting tourist attractions & cities as well as staying in hotels or resorts for some or all of their stay. A chi square test of association was used to examine the association between some categorical variables. The results are demonstrated in tables 4, 5 and 6: Table 4: Association between the country of residence and the length of stay in Egypt Do Not Visit One week or More than Total Egypt Anymore less weeks weeks 4 weeks Canada Europe Gulf countries USA Total The chi square test revealed that there is a significant association between the country of residence & the length of stay in Egypt. Chi square = 81.2 (Significance 2-sided.000). This is indicated in the above table, where we can detect that the pattern of the length of stay varies according to the country of residence where the immigrant lives. For example we can observe that the length of stay of those coming from the Gulf countries tends to be somewhat longer than those coming from Europe & North America. Table 5: Association between gender and the length of stay in Egypt Do Not Visit Egypt One week More than Total Anymore or less weeks weeks 4 weeks Female Male Total The chi square test revealed that there is no significant association between gender & the length of stay in Egypt. Pearson Chi square = 10.6 (Significance 2-sided.32). This result indicates that the length of stay in Egypt is not connected to the gender of the immigrant. So whether the immigrant is a male or a female, this has no specific relation to the length of time he/she will spend on his vacation in Egypt. 524

9 Table 6: Association between the country of residence and the frequency of travel to Egypt Country Frequency of travel to Egypt Total 2-3 I never once once once times a year visit Egypt anymore a year every 3-5 every 5 years or once every two years years more Canada Europe Gulf Countries Other USA Total The Chi square test revealed that there is a significant association between the country of residence & the frequency of travelling to Egypt. Pearson Chi Square = (Significance 2-sided.000). In light of this result, we can basically analyze the numbers in the above table. It is noticeable that the farther the country of residence, the lesser the frequency of travel to Egypt and vice versa. This is explains why the frequency of travel from the Gulf countries and Europe is more than that from the USA and Canada. This is mainly due to the distance effect, which has its implications on a few other factors including cost and prolonged time of travel. Conclusion and Recommendations The VFR tourist segment in Egypt is often neglected and underestimated to a great extent due to the misconception that it is not a profitable segment. In spite of the fact that VFR is the main purpose of travel for most Egyptian immigrants visiting Egypt, it is usually combined with other travel purposes such as sun & sea, cultural tourism & others, thus yielding more economic benefit to the community. The VFR tourist in Egypt is characterized with a long stay and a big part of them are highspend segments. The research revealed that the accommodation of VFR tourists is usually houses of relatives or friends. However, most of them also go on long trips to tourist cities inside Egypt and stay at a hotel or a resort for parts or sometimes all of their vacation. This creates a great opportunity for the Egyptian tourism sector, especially in times of tourism crises. The study revealed that here is a significant association between the country of residence and the length of stay in Egypt. It was also revealed that there is a significant association between the country of residence and the frequency of travelling to Egypt. On the other hand, there was no significant association between gender and the length of stay in Egypt. The researcher recommends that current passport control statistics should be amended in order to reveal actual numbers of Egyptian immigrants visiting Egypt and not merely count them as Egyptians. This would be of special benefit to the accuracy of registering and understanding tourism flows statistics in Egypt. The magnitude of Egyptian immigrants with their large numbers worldwide presents a great opportunity to marketers, especially in such times of tourism crises. With their huge size and emotional attachment to their homeland, they can easily replace some of the declining international markets. Therefore, special marketing communications campaigns should be targeted towards Egyptian immigrants in general and the second and third generations in particular. Travel agents should also tailor special tours for Egyptian immigrants and their second and third generations who are interested to know their roots. 525

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