Establishing a Tourist Facilities in Egypt

Introduction:

The Hotel and Tourist Establishments Law (Law No. 8 of 2022) marks a new era for Egypt’s tourism sector. This law significantly benefits investors by streamlining procedures and addressing obstacles hindering tourism activity. The Tourist Facility Law fosters better coordination among relevant government agencies.

The Law’s Objectives:

The new law aims to simplify licensing procedures for hotel and tourist establishments, thereby encouraging investment. The Ministry of Tourism’s new mechanism ensures efficiency and speed, improving Egypt’s business environment and competitiveness in attracting investment.

What Constitutes a Tourist Establishment?

Tourist establishments cater to Egyptians and foreigners, providing food and beverages. This includes: restaurants (including floating, cart, and fixed), cafeterias, tourist transportation, land/Nile/sea tours, nightclubs, shops (ordinary and tourist goods), activity centers (diving, safari, marine activities), health and sports centers (within hotel facilities), and other related facilities and activities. However, specific guidelines must be followed.

General Licensing Requirements for Hotel and Tourist Establishments

1. Building Requirements: Fixed facilities must meet building code requirements (Building Law).
2. Engineering and Construction Requirements: Floating facilities (fixed or mobile) must meet navigational validity and safety standards.

Further special requirements are determined by the Permanent Committee for Hotel and Tourism Establishments Licensing. These include civil protection, environmental, health, and occupational safety and health standards.

Required Data and Documents for Licensing

1. Applicant Information: Name, capacity, title, nationality, residence, mailing address, phone, fax, and email.
2. Facility Manager/Supervisor Information: Name, title, nationality, residence, mailing address, phone, fax, and email.
3. Building Owner Information: Name, and nature of the legal relationship with the applicant or facility user.
4. Establishment Information: Name, address, phone, fax, email, and owner’s name.
5. Activity Type: Specify the type of activity requiring a license.
6. Deed Overview: Summary of property deeds.
7. Estimated Cost: Projected financial investment.
8. Proposed Name: Business name for the establishment.
9. Economic Classification: Specify the economic classification of the facility.
10. Staffing Plan: Scheduled timeline to reach full operational capacity, including the number of trained workers (starting with at least 10% of the final number).
11. Capacity: Accommodation capacity (seats or beds).

Obligations of the Licensee/Facility Manager

1. Fair Treatment: Treat all guests equally, upholding Egypt’s tourism reputation.
2. Non-Discrimination: Allow access without discrimination based on religion, creed, gender, origin, race, color, language, disability, social level, political or geographical affiliation, or any other reason, while respecting Egyptian customs and traditions.
3. Guest Data Recording: Record guest data (nationality, origin, arrival/departure dates, tourism company).
4. Guest Instructions: Provide guests with facility rules (approved by the Ministry) and enforce them, seeking compensation for damages caused by violations.
5. Clear Signage: Publicly display the facility’s name, class, licensed activity, and contact information.
6. Complaint Hotline: Display contact information for the Ministry’s complaint hotline.
7. Price Transparency: Publicly display approved prices (including service and tax) with a certified Arabic copy available.
8. Consistent Pricing: Apply consistent pricing to all guests, except as per contracts with tourism companies.
9. Minimum Order Policy: Any minimum order policy requires prior approval from the relevant department.
10. Price Adherence: Charge only approved prices, providing detailed invoices.
11. Safe Deposit: Provide a safe for guest valuables with receipts, accepting liability for loss.
12. Lost Property: Report lost valuables to the Tourism and Antiquities Police within 24 hours.
13. Contract Adherence: Fulfill contracts with tourism companies.
14. Employee Data: Provide employee data to the Ministry and report changes within 48 hours.
15. Employee Training: Ensure employee training as per Ministerial Decision.
16. Hotel Facility Operation: Tourist facilities (restaurants, shops, etc.) within a hotel must be accompanied by operational accommodation facilities (rooms).
17. Disease Prevention: Implement disease prevention measures to ensure guest safety.

Conclusion:

Egypt’s evolving tourism regulations require continuous adaptation. Balancing economic growth with tourist wellbeing is crucial. Prioritizing visa modernization, consumer protection, safety, security, and sustainable practices will strengthen Egypt’s position as a leading tourist destination. Collaboration between the government, tourism operators, and regulatory bodies is essential for realizing the full potential of Egypt’s tourism sector while upholding the rule of law. A strong legal framework will solidify Egypt’s global leadership in tourism, driving economic prosperity and social progress.

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