Investments in 59 projects are expected to reach an initial LE9bn by the end of the current fiscal year (FY) 2014/2015, according to Tourism Development Authority (TDA) director Serag al-Din Saad.
According to Saad, the estimated costs for the projects are LE2.8bn, although the actual cost of the projects could reach LE9bn.
The Red Sea area is on top in number of projects approved by the TDA with 52 projects on a land area of 9.5m. sq.m, followed by Ain Sokhna with six projects on a land area of 405,000 sq.m.
Saad believes the TDA succeeded in taking advantage of the extra land spaces in some of the projects’ lands and offering them for sale to investors. This would increase the added value of these areas and double the income of the authority.
“These results have led to a financial surplus worth LE258m. to the Ministry of Finance for the current FY 2014/2015,” Saad said.
Saad expects the TDA’s income to increase by the end of FY 2014/2015 by LE600m, a growth of 30 per cent compared with last year’s income.
The final allocation approvals for lands sent by the TDA in FY 2013/2014 amounted to 26 approvals, with investments worth LE1.6bn, according to Saad.
The new projects in the Red Sea area vary between nine projects on a land area of 816,000 sq.m, another three projects, and expansions on extra land spaces of 157,600 sq.m. There are another two projects on extra land spaces of 33,000 sq.m, as well as a project for expansion of road transport on a land area of 255,000 sq.m, according to Saad.
Hotel rooms which were included in the service amounted to about 1,600 rooms in the second quarter (Q2) of FY 2014/2015. Tourist housing units, on the other hand, amounted to 600 units.
The expected land areas which will be offered in the second half of FY 2014/2015 cover 12m. sq.m, with investments up to LE6bn distributed in the Red Sea area, Gulf of Suez, and the North Coast.
Saad added: “The North Coast and Gulf of Suez land will be offered in coordination with the governorates, in order to guarantee the full development of the area and so that the local community benefits from it.”
