Egypt reviews airport security, services    Egypt seeks Indian expertise to boost pharmaceutical industry    Egyptian pound shows stability vs. USD in early trade    Egypt's PM heads to Japan for TICAD 9 Africa development summit    National Council for Childhood reviews plan to combat child labour    Egypt's Supreme Organ Transplant Committee strengthens oversight, standards    Price cuts underway across Egypt, says trade federation report    African agribusiness market expected to reach $1tr by 2030    Israelis protest for hostage deal amid growing pressure on Netanyahu    Serbia's Vucic vows 'tough measures' against protesters after unrest    Zelenskyy seeks US security guarantees as Trump says he can 'end war now'    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt delivers over 30 million health services through public hospitals in H1 2025    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



It is in banks' interest to help tourism sector: NBE board member
Published in Daily News Egypt on 04 - 05 - 2015

Following the tourism sector's recession, affected by the political and economic turmoil following the 25 January Revolution, the banking sector has stood beside insolvent tourism companies and investors in attempt to revive the sector.
It was in the interests of the banks to help the tourism sector or the sector would have died, National Bank of Egypt (NBE) executive board member Yehia Aboul Fotouh told Daily News Egypt.
In efforts to ease the crisis for tourism investors and companies, the Central Bank of Egypt (CBE) extended the period of an initiative launched in early 2014, aimed at postponing the tourism sector's debts until the end of that year. They payment delay was to allow the sector to recover, and was to be effective until the end of June.
Several banks responded to the initiative last year, most prominently the NBE, which announced in 2014 that its total non-performing loans amount to EGP 6bn. The tourism and industry sectors represent 75% of the total debt, while other sectors, led by transportation and oil, account for the remaining 25%. The tourism sector accounts for 40% of the total debt versus 35% for industrials.
Regarding whether the CBE will extend the initiative or not, Aboul Fotouh said: "It is really hard to expect this time."
The tourism sector has begun to recover in Sharm El-Sheikh, Hurghada and Marsa Allam, but has so far yet to be restored to normal capacity in Nuweiba/Taba, Luxor and Aswan, Aboul Fotouh said. He added that these rates are in terms of occupancies, disregarding the hotel prices.
Despite the initiative's approaching end date, tourism investors are still facing hurdles as in April, Sinai's Chamber of Hotels requested a delay in paying overdue loans for tourist projects. The projects were established on lands allocated for tourism development until the end of the current year, especially in Nuweiba/Taba and Ras Sedr.
A Chamber of Hotels official told Daily News Egypt at the time that the lower tourist occupancies in hotels located in this area have affected the construction rates as well as projects over the last four years. The official, who requested anonymity, declared that investments under construction in Nuweiba/Taba amount to EGP 12bn, while investments in Ras Sedr exceed EGP 20bn.
Echoing similar demands last December, the Egyptian Federation of Chambers of Tourism requested the banking system postpone debt repayment until the end of 2015, according to a Ministry of Tourism official. He added that European Union (EU) officials had told the ministry the sector cannot handle repayment before 2016.
There are approximately 3.8 million workers in the tourism sector, of which 1.8 million are employed indirectly by the industry, mainly in the hotel industry and tourism companies. Many of those workers were negatively affected by the poor tourism performance following the 25 January Revolution. However, the Egyptian government is still hoping for a tourism rebound as it plans to increase investments in the sector in 2015 through offering land parcels through the General Authority for Tourism Development (GATD).
Tourism investment over the past four years fell by 75%, compared to the period before the 25 January Revolution. The authority was planning to raise five projects for integrated development during the Economic Summit in March, with investments worth EGP 5.2bn, according to a GATD official.
Egypt's most important source of foreign currency is facing doubt over its return, with violence escalating in the streets due to increasing rates of bombs across Egypt.
While the violence escalating on Egypt's streets, many tourism experts doubt the return of tourism to its normal level even after the Economic Summit. Although the government is taking action to lure foreign investments and tourism, Egypt's most important sources of foreign currency, the security situation is still a challenge with the increasing rates of bombs on Cairo streets.


Clic here to read the story from its source.