Egypt launches £50 billion plan to revitalize tourism
15-11-24
The Egyptian government has announced an ambitious initiative aimed at revitalizing its tourism sector, offering a financial package of 50 billion Egyptian pounds. The move seeks to strengthen tourism infrastructure and attract more international visitors.
The program, introduced by the Ministries of Tourism, Antiquities and Finance, provides financing options to tourism businesses, especially those interested in expanding hotel capacity in key destinations such as Luxor, Aswan, Greater Cairo, the Red Sea and South Sinai.
Tourism Minister Sherif Fathy stressed that the main objective is to boost investment in the tourism industry, enabling hotels and related businesses to prepare for the expected increase in visitor numbers.
Companies interested in accessing this financial support have a period of one year to submit their applications. Funding limits are set at EGP 1 million per applicant and EGP 2 million for related entities. The financing offers a favorable declining interest rate of 12%, with a drawdown period of 16 months and a final licensing deadline of June 2026.
So far, 96 applications have met the requirements to participate in the initiative, reflecting strong interest within the sector.
Finance Minister Ahmed Kouchouk emphasized the government's commitment to strengthening the tourism industry as part of its economic growth agenda. To qualify, participating companies must convert 40% of their revenues into foreign currency for deposit with the banks that finance them, thus ensuring backing for Egypt's foreign exchange reserves.
This initiative aims to improve cash flow within the tourism sector, encourage private sector growth and promote Egypt as a leading destination for international travelers.
Tourism is one of the main sources of revenue for Egypt, contributing significantly to GDP and generating employment for millions of people. However, in recent years, the sector has faced challenges due to factors such as political instability and the COVID-19 pandemic, which negatively affected tourist inflows.
With this new initiative, the government seeks not only to recover previous tourism levels, but also to surpass them, positioning Egypt as an attractive and globally competitive destination.
Representatives of the private sector have received the initiative positively, viewing it as an opportunity to modernize and expand their operations. The availability of concessional financing will enable businesses to improve their services and adapt to the demands of contemporary tourists.
Despite the optimism, some experts point out that effective implementation of the initiative will require close coordination between the government and the private sector. In addition, it will be essential to ensure that funds are used efficiently and transparently to achieve the proposed objectives.
If successfully implemented, this initiative could mark a turning point for tourism in Egypt, boosting economic growth and improving the country's image on the international stage. Collaboration between the government and the private sector will be key to achieving these goals and ensuring a prosperous future for Egypt's tourism industry.
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