Abu Dhabi-based tourism business to modernize three hotels in Egypt

ADTIC’s portfolio in Egypt includes three hotels, rated at four and five stars, in Cairo, Hurghada and Sharm El-Sheikh. (Shutterstock)
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Updated 11 September 2020

Abu Dhabi-based tourism business to modernize three hotels in Egypt

  • Project, which will be complete by second half of 2021, aims to cash in on sector’s expected post-pandemic recovery

CAIRO: Abu Dhabi Tourism Investment Company (ADTIC) has announced plans to refurbish its three hotels in Egypt. It is part of a strategy designed to help the business cash in on the major post-pandemic recovery it expects in the country’s tourism sector.

ADTIC’s portfolio in Egypt includes three hotels, rated at four and five stars, in Cairo, Hurghada and Sharm El-Sheikh. The company, in which government agency the Abu Dhabi Fund for Development (ADFD) has an 84.3 percent stake, also owns 99.3 percent of the shares in Misr Hotels Company, which owns a five-star resort in Luxor.

Mohamed Saif Al-Suwaidi, director general of ADFD and chairman of the board of directors of ADTIC, said he expects great activity in the Egyptian tourism sector when air travel returns to normal after the pandemic and tourists start to return.

“We chose this time in which the tourism movement is witnessing a decline, and so are hotel occupancy rates in most countries of the world, to rehabilitate hotel facilities in preparation for receiving visitors for the post-coronavirus phase and the return of tourist and economic activity,” he said.

ADTIC CEO Haitham Farouk said that the strategic locations of the hotels, and their ability to generate high levels of revenue, make investing in them feasible, especially with the expectations of growth in the sector after the pandemic. He added that there will be an increased emphasis on electronic transactions and processing procedures at the hotels to ensure that physical contact is reduced as much as possible, especially in the early stages of the recovery.

He added that the development and modernization of hotel facilities, making use of the latest technologies, digital transformation and other services, will help ADTIC keep pace with the global tourism industry. The changes will increase hotel occupancy rates and have a positive affect on Egypt’s tourism revenues, he added. He expects the main stages of development and modernization to be completed during the second half of 2021.

The tourism and hospitality industry in Egypt is one of the main sources of national income. It contributed revenue of $13 billion in 2019, an 18 percent increase on the previous year.
 


Saudi Arabia expects to reduce spending as it seeks to shrink deficit

Updated 35 min 24 sec ago

Saudi Arabia expects to reduce spending as it seeks to shrink deficit

 

LONDON: Saudi Arabia plans to reduce spending next year by about 7.5 percent to SR990 billion ($263.9 billion) as the Kingdom seeks to reduce its deficit. It compares to spending of SR1.07 trillion this year it said in a preliminary budget statement.
It anticipates a budget deficit of about 12 percent this year falling to 5.1 percent next year.
The Kingdom released data on Wednesday showing that the economy contracted by about 7 percent in the second quarter as regional economies faced the twin blow of the coronavirus pandemic and continued oil price weakness.
The unemployment rate among Saudis increased to 15.4 percent in the second-quarter compared to 11.8 percent in the first quarter of the year.
The challenging headwinds facing regional economies is expected to spur activity across debt markets as countries sell bonds to help fund spending.
Saudi Arabia has already issued about SR84 billion in sukuk year to date.
“Over the past three years, the government has developed (from scratch) a well-functioning and increasingly deeper domestic sukuk market that has allowed it to tap into growing domestic and international demand for Shariah-compliant fixed income assets,” Moody’s said in a statement on Wednesday. “This, in turn, has helped diversify its funding sources compared to what was available during the oil price shock of 2015-16 and ease liquidity pressures amid a more than doubling of government financing needs this year.”