Cairo: The Ministry of Finance has announced the regulations for the EGP 50 billion tourism support initiative, in a joint statement with the Ministry of Tourism and Antiquities. The announcement was made on Thursday, October 31, 2024.

According to State Information Service Egypt, Minister of Finance Ahmed Kouchouk stated that the public treasury will play a crucial role in financing the tourism sector. This support aims to enable the establishment of more hotel rooms and increase visitor accommodation capacity. Kouchouk highlighted that the initiative provides companies in the tourism sector with access to a subsidized return rate from the treasury for a period of five years, starting from the date of the first withdrawal of financing facilities.

Participating companies are required to allocate 40 percent of their revenues in foreign currency to the financing banks. This aligns with the government’s strategy to bolster the tourism sector through fiscal policies that encourage economic growth. Kouchouk reit
erated the government’s commitment to supporting tourism through financial incentives.

Minister of Tourism and Antiquities Sherif Fathy emphasized the initiative’s importance in promoting tourism investments, particularly in the hotel sector, to cater to the expected rise in tourist numbers. Egypt’s tourism ministry aims to attract 30 million tourists by 2028, with plans to construct 200,000 to 250,000 new hotel rooms to meet this target.

Fathy also mentioned that 96 applications have been submitted by companies that meet the criteria of the initiative. These companies will benefit from a low and decreasing return rate of 12 percent, with a withdrawal period of up to 16 months, which must conclude by the end of June 2026. Additionally, companies will receive a six-month grace period following the withdrawal period to secure a final or temporary operating license.