Assisting Agadir THE EU has signed a contract worth three million euros to establish a technical unit for the implementation of the Agadir agreement in Jordan. Signed last year, the Agadir agreement establishes a free trade zone between Jordan, Egypt, Morocco and Tunisia. The contract was awarded to Maxwell Stamp, a UK- based consulting firm specialised in trade matters. This contract is part of a four million euro financing agreement signed last December between the delegation of the European Commission in Jordan and the Jordanian Ministry of Planning and International Cooperation for supporting the implementation of the Agadir agreement. The Agadir agreement allows the four signatory countries to accumulate the percentage of local components needed to export to the EU free of tariffs and quotas, and is considered an important step towards the establishment of a Euro-Mediterranean free trade area by 2010. The process was initiated in May 2001, when the four partners formally expressed their intention to set up a free trade area and form a market of around 100 million consumers. Mission IMF A RECENT IMF delegation commended the new government for the reform initiatives it has carried out since coming to office last year. The mission concluded its consultation with the Egyptian authorities in preparation for the annual Article IV report to be presented to the IMF's Executive Board. A statement issued by the staff mission said that "the consultation took place in the context of a solid economic recovery, strong external position, and improved confidence. The new cabinet that was appointed in 2004 quickly established its reform credentials by enacting a series of decisive measures." The steps taken by the government singled out for praise by the IMF range from trade and tariff reforms to the announced intent to reform the financial sector and privatise a large number of state-owned companies. "The government has embarked on an ambitious programme of privatisation and financial sector reform. The mission encouraged the authorities to pursue these programmes vigorously and to adhere to targets and timeframes set out under them," said the statement. The delegation also lauded the launch of the interbank market for foreign exchange, saying that it "completed the transition to a unified flexible exchange rate system", while recommending mechanisms that the central bank could use to further ensure the orderly functioning of the market. In the area of fiscal policy reform, the mission commended government efforts to modernise its budget classification and treasury cash management, improve tax administration, and reform the income tax, stating that "the government is committed to reducing the budget deficit in order to lower public debt and create room for financing private sector investment." Egypt's subscription to the IMF's Special Data Dissemination Standard in January 2005 was also hailed by the IMF delegation as a step which should "improve the quality of statistics, particularly the balance of payments and indicators of inflation and economic activity". Cellular emissions A JOINT protocol aimed at protecting public health against the hazards of electro-magnetic emissions from stations transmitting signals for cellular phones was recently concluded between the Ministry of Health and Population, the minister of state for environmental affairs, and the minister of communications and information technology (CIT). The Mobile Phone Base Stations (MacroCells) Standards Protocol seeks to apply international standards requiring the installation of macrocells in Egyptian stations. This is intended to protect citizens from electro-magnetic emissions. "Before building any stations in Egypt, mobile phone service providers have to present documents from the Ministry of Health and the Ministry of Environmental Affairs that prove they meet international standards," said Maged George, minister of environmental affairs. These standards in part stipulate that macrocells stations not exceed a height of 50 metres and be surrounded by a six-metre non-metallic fence to prevent any emissions. Moreover, those stations must be at least 20 metres away from hospitals and schools to ensure safety. "We carry out periodic inspections to the 400 macrocells stations around Egypt, and those who violate standards get closed," said Ahmed El-Sherbini, manager of the National Telecommunications Institute. In another development, the minister of CIT and the minister of health and population signed a protocol to bring health promotion online in Egypt. By implementing the agreement, Egypt will establish a link with global medical centres, which will be beneficial for both students and patients. The protocol will also launch an electronic database to provide patients with their health records. Tourism thrives on CONCERNS about regional instability have not dampened Egypt's attraction as a tourist destination, Eman Youssef reports. The Red Sea port of Hurghada was bustling this week, not just with the usual influx of foreigners on holiday, but also because of a conference on local developments in the tourist industry. Hosted by the Red Sea governorate, a German business delegation attended the conference and met with existing investors. "Turn on the television and the scenes of violence in the Middle East tell one story. Yet tourism in Egypt is booming, thanks to the bargain prices currently provided and fabulous new hotels," Hossam Al-Shaer, chairman of a travel company and member of the Egyptian Chamber of Tourist Establishments told the delegation during the conference. Al-Shaer commented that the hotel industry is the fastest growing industry in the region and worldwide and will be for the next two decades. "People are more affluent, live longer and they like to travel," he explained. "You might imagine wars and terrorism would scare them off, but it seems unlimited sunshine and luxury accommodation at bargain prices can overcome such worries," Al-Shaer told Al-Ahram Weekly. He pointed out the depreciation of the pound against the major hard currencies since its flotation in January 2003 has given tourists greater spending power. Tourists from Europe and increasingly from the Gulf are choosing to vacation closer to home given the difficulty of obtaining visas to the US and other destinations. "Egypt has begun to attract visitors who may have otherwise chosen Mediterranean destinations such as Greece and Turkey," added Mohamed Mashour, adviser to the chairman of Banque du Caire. Tourism contributes an annual average of $4 billion to the Egyptian economy. During the conference, Red Sea Governor Saad Abu Reda explained the area's tourist attraction sites and its facilities, urging local and foreign investors to consider investing in the country's tourism opportunities. He highlighted recent developments such as the airport, the new road linking Safaga and Qusair and the hotel building frenzy throughout Hurghada and across Egypt. He also said that he does not believe that the modest recovery of the pound against the dollar would deter potential visitors. Adel Youssef, a local hotel manager. is optimistic. "We're expecting a pretty good summer. The first months of this year have been better than in 2004." The cities on the western shore of the Red Sea, Hurghada, Marsa Alam, Qusair and Safaga, have enjoyed a tourism boom as tourists pour in from Europe, especially Germany, Italy, Holland and Scandinavia. All hotels in these cities reported being fully booked over the Christmas holiday. According to figures from the Ministry of Tourism, visitor arrivals to the country rose from 5.19 million in 2002 to 6.04 million during 2003, shattering the previous record of 5.5 million visitors in 2000. In 2004, an estimated 7.5 million tourists are estimated to have visited the country, while this figure may reach 8.5 million for the current year.
