{"id":612383,"date":"2023-12-21T00:00:00","date_gmt":"2023-12-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/21\/cabinet-greenlights-incentives-for-hospitality-players\/"},"modified":"2023-12-21T00:00:00","modified_gmt":"2023-12-21T00:00:00","slug":"cabinet-greenlights-incentives-for-hospitality-players","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/21\/cabinet-greenlights-incentives-for-hospitality-players\/","title":{"rendered":"Cabinet greenlights incentives for hospitality players"},"content":{"rendered":"

Fresh incentives for hospitality sector:<\/strong> The Madbouly cabinet has approved a new EGP 50 bn tourism initiative that will see the government offer financial incentives to encourage hospitality players to increase their hotel room capacity. This came during the cabinet\u2019s latest weekly meeting<\/a>.<\/p>\n

What\u2019s being offered? <\/strong>The government will offer hotel companies payouts not exceeding EGP 2 bn depending on their size to build, set up, or acquire new hotel rooms. Companies can start receiving the funding as of 1 January, the initiative will run for a full year. <\/p>\n

Tax breaks: <\/strong>Tourism projects established after the implementation of the 2007 Investment Law will receive an income tax break. <\/p>\n

The FX fine print: <\/strong>To be eligible, a company will need to exchange 40% of their hard currency revenues through the banking system for a five-year period. The initiative only applies to hotels operating in Greater Cairo, Luxor, Aswan, the Red Sea, South Sinai, and the North Coast. <\/p>\n

What\u2019s next? <\/strong>The mechanisms under which the initiative will be implemented will be drawn up by the finance and tourism ministries, alongside the central bank. <\/p>\n

ALSO APPROVED- <\/strong><\/p>\n