EGP 50BN INITIATIVE TO SPUR TOURISM AND HOTEL INVESTMENTS IN EGYPT. THIS INITIATIVE WILL OFFER LOAN FACILITIES AND INCENTIVES TO PRIVATE SECTOR WITH ECONOMIC AND EMPLOYMENT BENEFITS.
In a bid to revitalize its tourism sector and spur hotel investments, Egypt has launched a robust EGP 50 billion initiative. Prime Minister Mostafa Madbouly chaired the Cabinet meeting where the comprehensive program revealed, aiming to accelerate private sector involvement.
EGP 50bn Initiative’s mechanism & Advantages
Economic Advantages of Hotel Investment
Highlighting the economic benefits, the EGP 50bn initiative underscores that every additional 15,000 hotel rooms could generate EGP 1-2 billion in value-added tax and EGP 2 billion in commercial and industrial profit tax. The ambitious plan is aiming to create around 45,000 new jobs directly and indirectly upon completion.
The program offers both loan facilities and investment incentives, with tailored credit sizes capped at EGP 1 billion per company. The maximum combined limit is set at EGP 2 billion for transactions involving two participating banks.
Strategic Focus and Eligible Locations
The EGP 50bn initiative focuses on constructing, establishing, or operating new hotel rooms, including acquiring inactive rooms. Eligible locations span Greater Cairo, Luxor, Aswan, the Red Sea, South Sinai, and the North Coast. Running from January 1, 2024, to December 31, 2024, the program aims to stimulate economic growth and reduce unemployment.
Implementation and Investment Incentives
Ministry of Finance, the Central Bank of Egypt, the Ministry of Tourism and Antiquities, and other stakeholders will develop the executive mechanisms for EGP 50 billion initiative. Additionally, investment incentives are extended to projects aligned with Investment Law No. 72 of 2007, with eligibility determined by the Supreme Council for Investment.
Conditions and Responsible Implementation
To ensure responsible implementation, companies must sell 40% of revenues in foreign currency through the banking sector at the official exchange rate during the support period. EGP 50bn initiative also underscores that beneficiaries need an operating license by June 30, 2026, to increase hotel capacity responsibly.