{"id":636430,"date":"2024-07-31T00:00:00","date_gmt":"2024-07-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/egypts-ambitions-to-become-a-global-yacht-hotspot-are-soon-to-get-a-boost\/"},"modified":"2024-07-31T00:00:00","modified_gmt":"2024-07-31T00:00:00","slug":"egypts-ambitions-to-become-a-global-yacht-hotspot-are-soon-to-get-a-boost","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/egypts-ambitions-to-become-a-global-yacht-hotspot-are-soon-to-get-a-boost\/","title":{"rendered":"Egypt\u2019s ambitions to become a global yacht hotspot are soon to get a boost"},"content":{"rendered":"

Galala Marina is at the center<\/strong> of Egypt\u2019s plans to grow its yacht tourism sector:<\/strong> The Galala Marina in the Red Sea is about to witness major investments in its infrastructure, with the Red Sea Ports Authority getting ready to finalize a contract with river transport company Nile Taxi for the management, operation, and upgrading of the marina in the coming weeks.<\/p>\n

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About Galala: <\/strong>Galala City is a state-led national development project overseen by the Armed Forces Engineering Authority. It includes the city itself, alongside Galala University, the Galala and Ain Sokhna-Zafarana roads, as well as a tourist resort that overlooks the Gulf of Suez.<\/p>\n

The gov\u2019t has been receiving offers for the development of the marina: <\/strong>The Transport Ministry in January held a tender targeting private players to operate the marina as part of Egypt's broader strategy<\/a> to become a global yacht tourism destination. <\/p>\n

The Red Sea Ports Authority has already <\/strong>signed<\/a><\/strong> an MoU with Nile Taxi<\/strong>, with the contracts expected to be finalized within weeks, Nile Taxi Chairman Magdi Ghali told Enterprise. The MoU grants Nile Taxi a 15-year renewable contract for managing the marina, with a USD 10 mn investment planned over the next decade. The Transport Ministry will receive 60% of the income after two years, with the contract stipulating the final agreement be signed within a little under a month to begin development.<\/p>\n

There are big plans for the Galala Marina: <\/strong>Ghali pointed out that the plan for the project is to make Galala into Egypt\u2019s first world-class marina, offering entertainment and banking services, as well as less red tape around customs and other logistical issues \u2014 all with the aim of making it a primary hub for international tourist ships. The marina\u2019s capacity is set to accommodate around 380 vessels, and will include around 100 shops to provide services for tourists in the area, Ghali said.<\/p>\n

Potential partnerships with the Gulf \u2014 and beyond:<\/strong> Nile Taxi plans to form partnerships with foreign partners to help expedite operations and increase sales, with the firm aiming to form partnerships with other marinas in Dubai, Saudi Arabia, and Spain. <\/p>\n

Galala could also offer special incentives for foreign ships and tourists: <\/strong>There are currently efforts underway to make half the Galala Marina into a freezone, which would attract foreign ships and tourists seeking duty-free goods and services, increasing the area\u2019s appeal for visitors. The matter is currently being discussed with the General Authority for Investment and Free Zones (GAFI). <\/p>\n

The goal is to get visitors to stay for longer than just a quick trip: <\/strong>The aim of the project is not just to provide services for visiting ships, but also to bring in more tourism to what is one of Egypt\u2019s most important areas in terms of \u201cnatural beauty and advanced tourist services,\u201d Ghali says. Among the area\u2019s advantages are a tourism season that lasts more than seven months, three high-quality hotels, numerous serviced apartments, as well as Galala University, which currently has 7k students and aims to eventually double that figure. <\/p>\n

The project is in line for funding: <\/strong>The project to develop the marina\u2019s infrastructure has received an offer from an international entity interested in providing funding, Ghali said. Nile Taxi has also held discussions with a local state-owned bank for additional financing, but the bank will only proceed after the contracts have been finalized, he added.<\/p>\n

What\u2019s next: <\/strong>The process of upgrading the Galala Marina\u2019s infrastructure will take around 90 days, followed by another 6 months of trial operations, Ghali said, adding that he\u2019s optimistic that the marina will operate efficiently immediately following its launch. Ghali also plans to seize more opportunities in the coming period in marinas in the southern Red Sea and the North Coast, noting the significant infrastructural improvements and facilitated procedures.<\/p>\n

The state\u2019s incentives: <\/strong>The Transport Ministry\u2019s digital<\/a>platform for tourist yachts<\/a> \u2014 which allows yacht owners to obtain all the necessary approvals from the concerned authorities in half an hour and pay fees online \u2014 will go a long way in attracting tourist yachts, Ghali said.<\/p>\n

Egypt\u2019s yacht tourism strategy: <\/strong>Egypt has been looking to attract more yacht tourism following the 2021 launch of its yacht tourism strategy, which saw the state update maps of all marinas nationwide and identify promising destinations that could attract more tourists. It also set regulatory frameworks that unified the rules for establishing and operating marinas across the country. <\/p>\n

Where Egypt\u2019s capacity for yacht tourism currently stands: <\/strong>Egypt currently has 23 marinas and yacht docks, the most notable of which include Porto Marina Resort's 500-berth yacht dock, and Hurghada Marina, which has a capacity of around 188 yachts at a time. Other significant marinas include Taba Heights Marina, Abu Tig in El Gouna, and Naama Bay in Sharm El Sheikh. <\/p>\n

Yacht tourism can be a major source of FX: <\/strong>The industry can bring in much-needed foreign currency, given the wealth of people who own or have access to yachts. The daily spend of those visiting Egypt via yachts is 94% more than the average tourist, former tourism minister Khaled El Anany previously said<\/a>. Globally, the yacht tourism market is valued at approximately EUR 12 bn euros, excluding what the tourists spend on land.<\/p>\n

The Mediterranean is a hotspot for yacht tourism: <\/strong>Half of global nautical tourism is concentrated in the Mediterranean alone, which draws in over 30k yachts a year, according to the Egyptian State Information Service. <\/p>\n

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