Friday, December 22, 2023
The Egyptian cabinet has given the green light to a LE 50 billion tourism initiative.
It is in a bid to revitalize the tourism sector and attract more visitors.
The government will provide substantial financial incentives to encourage companies operating in the sector to expand their hotel room capacity, a move aimed at accommodating the growing number of tourists flocking to the country.
The approved initiative specifically targets hotels located in prominent tourist destinations, including Greater Cairo, Luxor, Aswan, the Red Sea, South Sinai, and the North Coast.
By focusing on these key areas, the government aims to maximize the potential of Egypt’s thriving tourism industry and leverage its unique attractions to boost the national economy.
During the Cabinet meeting, it was stressed that investing in new hotel rooms would yield significant returns for the economy.
According to experts, every 15,000 additional hotel rooms can generate a value-added tax of approximately LE 1 to 2 billion, along with an estimated LE 2 billion in commercial tax and industrial profits.
Furthermore, this expansion is expected to create approximately 45,000 new direct and indirect job opportunities, providing a much-needed boost to the labor market.
The incentives offered under the initiative are also projected to bolster Egypt’s foreign currency reserves while simultaneously combating unemployment rates.
By stimulating the private sector to expand its investments, the government aims to increase the nation’s foreign currency resources while decreasing unemployment levels.
To be eligible for these incentives, companies must meet specific criteria. One of the conditions discussed during the Cabinet meeting stipulates that participating companies will need to exchange 40 percent of their hard currency revenues through the banking system over a five-year period.
This measure is intended to promote transparency and ensure the proper flow of funds within the banking sector.
Moving forward, the Ministry of Finance, the Central Bank of Egypt, and the Ministry of Tourism and Antiquities will collaborate to develop the mechanisms for implementing the initiative.
This coordinated effort among key government entities underscores the commitment to making the initiative a resounding success and solidifying Egypt’s position as a premier tourist destination.
Monday, January 1, 2024
