Rise in tourism puts Egypt on investment map

Wednesday, 21, May 2008 08:03

Tourism figures in Egypt grew by 20 per cent in 2007 according to the United Nations' World Tourism Organisation (UNWTO).

The increase has fostered demand among investors looking to rent accommodation to the new influx of travelers.

Of the 46 million tourists visiting the Middle East in 2007, some ten million went to Egypt - creating a large potential market for accommodation.

"This is excellent news for the buy to let market," said Marion Isom, managing director of La Siesta Tourism and Real Estate Services.

"Tourism figures always have an effect on the property market of a region and this rapid growth in interest in this amazing country is a welcome step forward."

It is now thought the Egyptian government's aim of achieving 14 million visitors by 2011 is achievable.

The World Travel and Tourism Council estimates tourism to Egypt will grow at the rate of around six per cent annually in real terms in the next decade.

The country's government is also keen to bolster investment from abroad.

Stamp duty in Egypt, along with capital gains tax and inheritance tax (for British citizens living in the UK and if property is left to family members) are all zero. There is also no tax for non-resident owners in Egypt.

These incentives now appear to be making an impact. According to the Institute of International Finance (IIF), the net foreign direct investment (FDI) to Egypt was 8.2 per cent in 2006/2007.

This is up from 0.5 per cent of GDP in 2004/2005.

Chris O'Toole