Egyptian Hotel Construction Receives $1.03 Billion Boost
In a move to revitalize the tourism sector, the Egyptian government has approved a bold initiative to inject 50 billion Egyptian pounds ($1.03 billion) into hotel construction projects across the country.
Expanding Tourism Infrastructure
The funding will be used for the construction and operation of new hotel rooms, including expansions of existing projects and the conversion of closed buildings into hotels. This initiative is part of the Ministry of Tourism and Antiquities’ strategy to attract 30 million tourists annually by 2038.
Targeted Areas for Development
Priority funding will be directed towards hotel rooms in key tourist destinations such as Luxor, Aswan, Greater Cairo, the Red Sea, and South Sinai. Popular resort towns like Sharm El Sheikh, Taba, Nuweiba, and Dahab are also included in the development plans.
Boost in Tourism Revenue
Egypt’s tourism revenue saw a significant surge in the first half of 2024, leading to a 4.7 percent year-on-year increase in sector earnings, totaling $6.6 billion. This growth is a positive sign for the country’s tourism industry.
Financial Details and Guidelines
The initiative will be funded by the Ministry of Finance, with funds available for construction, equipment, and finishing work. Companies can apply for financing based on their business volume and banking regulations, with a maximum limit set for each client.
Application Process and Deadlines
Applications for the initiative will open within a month of its launch and remain available for 12 months. The drawdown period is limited to 16 months, with a final deadline set for June 30, 2026. Beneficiary companies must obtain an operating license within six months after the drawdown period.
Rising Tourism Numbers
In the first half of 2024, Egypt experienced a notable increase in tourist arrivals, surpassing the peak figure recorded in 2010. With strategic investments in hotel infrastructure, Egypt aims to further boost its tourism sector and attract millions of visitors in the coming years.