Egypt upholds its position year after year in global competitiveness and demonstrates that this industry offers great investment opportunities.

The Tourism sector has numerous Comparative and Competitive Advantages, the most significant of which are as follows:

• Diverse Tourism Attractions: Egypt possesses unique natural and cultural assets, including the Nile River, the Red and Mediterranean coastlines, nature reserves, deserts, and mountains, in addition to a rich cultural and archaeological heritage spanning thousands of years.
• Diverse and Integrated Tourism Activities: Egypt offers a wide range of tourism options, including cultural and archaeological tourism, beach and leisure tourism, ecotourism, wellness and spa tourism, religious tourism, sports tourism, as well as conference and events tourism, providing comprehensive tourism experiences.
• Year-Round Tourist Destination: Egypt's diverse geography and climate allow it to welcome tourists year-round, with the possibility of combining multiple tourism experiences during a single visit.
• Competitive pricing for tourism services and products in Egypt compared to many neighboring countries in the Arab, Middle Eastern, and North African Regions.
• Advanced Tourism Infrastructure and Capabilities: Egypt boasts a growing base of hotels and tourist facilities, a sophisticated network of roads, airports, ports, and transportation options, along with a highly experienced workforce in the Tourism sector.
• Diverse Investment Opportunities: The diversity of tourist destinations and products provides ample opportunities for investment in hotels, resorts, recreational, environmental, therapeutic, marine, and other promising tourism activities.

A government plan to revitalize the tourism sector, through the implementation of a new strategy, aims to steer the tourism industry towards achieving economic and tourism security. Key government measures include:

•  Launching the National Sustainable Tourism Strategy 2030 to enhance the competitiveness of Egypt as a tourist destination, develop infrastructure, leverage technology, and develop human resources, while preserving natural resources and cultural heritage.
• Developing Infrastructure and Tourist Destinations: The government continues to invest in tourism infrastructure and develop archaeological sites and destinations, along with expanding hotel capacity, thereby enhancing the quality of the tourist experience and increasing the sector's capacity.
• Strengthening air connectivity and encouraging airlines to attract new tourist markets and promote charter flights to various tourist destinations, especially during periods of low demand.
• Developing Tourism Services and Digital Transformation: The government's efforts include improving services provided to visitors and employing technology at tourist and archaeological sites, including the implementation of electronic ticketing and service systems, which will increase operational efficiency and enhance the tourist experience.
• Enhancing Private Sector Participation and Partnership with the State: The government is moving towards providing more investment opportunities for the private sector, and maximizing the benefit from the state’s tourism assets by developing and managing them through partnership models with the private sector.

• Special Incentives:

Pursuant to Investment Law No. 72 of 2017, certain activities in the tourism sector are eligible for the special investment incentives provided therein. These incentives take the form of a deduction from net taxable profits equivalent to 50% of the investment costs for Sector A or 30% for Sector B, depending on the geographical location of the investment. In accordance with Decree No. 104 of 2022, the activities eligible for these incentives under Sectors A and B are as follows:

• Activities Eligible for Special Incentives within Sector (A):
  -    Fixed and floating hotels,    hotel apartments, tourist villages, and activities pertaining or ancillary thereto, whether of servicing, recreational, sporting, commercial or cultural nature. Furthermore, the completion of or expansion in such establishments, provided that hotels, hotel apartments and tourist villages rating is not less than three (3) star and that the total area of the sold units of related facilities does not exceed half of the built area contained in the accommodation capacity of the project.
  -    Ecotourism, in relation to nature-oriented tourist destinations such as eco-lodges and bird-watching sites, and the integration of biodiversity into the tourism sector.
  -    Activities related to establishing green infrastructure and conserving energy efficiency for tourism projects.
  -    All investment activities aimed at the development of sustainable tourism and green tourism.
  -    Construction and operation of yacht marinas, golf courses, diving centers, and any other activities relating or their ancillary.
  -    Hotels, hotel apartments and tourist villages management and marketing
  -    Companies providing services at archaeological sites and museums as per the terms and conditions to be issued under a decision of the authority concerned with this activity.

Pursuant to Prime Minister Decree No. 2562 of 2024, "Sector (A) encompasses the Greater Cairo governorates exclusively with respect to the tourism sector, covering specific sub-investment activities. These activities, along with the terms and conditions for granting them special incentives, shall be defined by a decree issued by the Prime Minister, based on a joint proposal from the competent minister, the Minister of Finance, and the relevant minister, in accordance with Article (11) of the Law."

• Activities Eligible for Special Incentives Sector (B):
  - Medical tourism for patients, including the organization of booking procedures at hospitals, medical and therapeutic centers, and other facilities as determined by a decision issued by the Minister of Health, in coordination with the Minister of tourism.
  - All investment activities aimed at developing sustainable and "green" tourism, and integrating biodiversity into the tourism sector.
  - Activities related to the establishment of green infrastructure and the implementation of energy-efficiency measures for tourism projects.
  - Tourist transportation services across all modes (land, river, sea, and air) and their development, including the adoption of smart and electric transport solutions to foster green tourism.