Egypt plans to construct five resorts on the Red Sea to solve the issue of foreign currency inflow and simultaneously achieve ambitious tourism goals. Each resort, as planned, will have its own airport and luxury hotels. The Egyptian press has revealed their locations and the investors involved, with most investments expected to come from the UAE.
According to media reports, Egyptian Prime Minister Mostafa Madbouly announced the government’s intention to offer investors 5 areas on the Red Sea coast. Their objective is to create resort cities with comprehensive development, including airports, yacht marinas, and ports for international tourism.
The first project, already in the theoretical implementation stage, is developing the city of Ras El-Hekma. In February, Egypt signed an agreement with a development holding company from Abu Dhabi for $35 billion. Additionally, the Ras Banas area, known as one of the world’s largest coral reef concentrations, will be among the regions offered.
“Investors have confirmed their confidence in the readiness of Egyptian and Gulf companies to compete for these investment opportunities, considering their competitive advantages and significant returns,” experts say. Specifically, Ihab Shoukry, a member of the Red Sea Tourism Investment Association, stated that offering investors 5 areas on the Red Sea coast for comprehensive development demonstrates the government’s commitment to developing tourism shortly. This aims to attract substantial foreign investments to the sector, which will lead to an increase in inbound tourists, boost foreign currency inflows, create more direct and indirect employment opportunities, and ensure sustainable economic growth.
“The creation of new tourist destinations on the Red Sea coast, especially in areas popular for their natural attractions, such as Ras Banas, which has one of the largest concentrations of coral reefs in the world, will attract a new segment of tourists from around the globe and enhance the competitiveness of Egypt’s tourism business,” he said. It is worth noting that despite the current challenges, Egypt’s tourism industry has ambitious plans: the country aims to welcome 30 million tourists by 2028.