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Significance
It will take time for investigators to determine the cause of the crash. However, evidence indicates that it was most likely caused by an explosive device smuggled on board with the passengers' hold luggage at Sharm el-Sheikh airport. The incident has dealt a severe blow to the tourism industry, and the apparent breach of security has exposed serious failings in a state system dominated by the security establishment.
Impacts
The blow to confidence in tourist security will choke off hopes of a significant increase in tourism revenue.
The loss of tourism revenue will complicate efforts to reform the exchange rate system.
It will also undermine Sisi's efforts to boost his legitimacy by delivering improvements to Egyptians' living standards.
Keywords:
Egypt,
ME/NAF,
Russia,
United Kingdom,
economy,
politics,
social,
balance of payments,
government,
growth,
security,
terrorism,
tourism,
airlines,
black market,
employment
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2015
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