Egypt launches EGP 50 Billion initiative to boost tourism sector

CAIRO – 31 October 2024: Egypt has unveiled  initiative to support the tourism sector, offering LE 50 billion in financing options and flexible repayment terms for tourism companies.

 

This initiative aims to increase hotel room capacity in key tourism areas, enhancing Egypt's ability to host more visitors.

 

The Ministries of Finance and Tourism have jointly announced that priority will be given to the governorates of Luxor, Aswan, Greater Cairo, the Red Sea, and South Sinai.

 

Finance Minister Ahmed Kouchouk highlighted the state treasury's role in providing subsidized interest rates on these funds for five years from the first financing disbursement, with the goal of stimulating growth in hotel infrastructure.

 

Tourism companies wishing to benefit from this initiative must allocate 40 percent of their foreign currency earnings to the financing banks, a step meant to ensure the initiative’s sustainability.

 

Minister of Tourism and Antiquities Sherif Fathy noted that this funding is a crucial boost for tourism investment, particularly in the hotel sector, enabling Egypt to accommodate a growing number of tourists.

 

Eligible companies have a year to apply, with funding capped at LE 1 billion per company and LE 2 billion for related entities.

 

The financing will feature a low, gradually declining interest rate of 12 percent, with disbursements capped at 16 months, ending by June 2026.

 

Companies will also have a six-month grace period post-disbursement to secure their final or provisional operating licenses.

 

As of now, 96 companies have applied, meeting the initiative’s eligibility requirements. In support of the initiative, the Central Bank of Egypt (CBE) released comprehensive guidelines in October to facilitate access to this EGP 50 billion funding, addressing challenges faced by the tourism sector.

 

In a recent statement, Minister Kouchouk reaffirmed the government’s commitment to reinforcing critical industries such as tourism and manufacturing.

 

This new tourism initiative, launched in September, emphasizes the government’s ongoing dedication to creating a supportive environment for growth in Egypt’s tourism industry.