President Hosni Mubarak stressed the importance of tourism, describing it as the most important export service of Egypt, speaking at…
President Hosni Mubarak stressed the importance of tourism, describing it as the most important export service of Egypt, speaking at the meeting of the Supreme Council of Tourism. Exports, of which tourism is a central part, should be a strategic priority for our society, President Mubarak said in his keynote speech at the opening of the expansion and upgrade work at Luxor airport.
The President delivered his speech to the first session of the Supreme Tourism Council, which was created according to a Republican decree for restructuring theSupreme Tourism Authority (STA). By virtue of the decree, the higher council is chaired by the Prime Minister. Its members are the Ministers of Culture, Interior, Planning, Civil Aviation, Local Development, Environment, Investment and tourism. Head of the Egyptian Tourist Chambers Federation plus four experts are chosen by the Tourism Minister to be members of the higher council. The new Council will be in charge of several tasks, topped by offering proposals on the policies needed to promote tourism movement.
President Mubarak also noted the importance of tourism as an employer. Ten percent of the labour force is engaged in the tourism sector, and every new successful investment project creates 200,000 jobs, the President said.
Tourism is also a prime source of hard currency, he said, pointing out that tourism alone earned $ 6 billion, followed by oil and Suez Canal revenues.
The President reviewed the growth of tourism in Egypt during the past ten years, noting that growth was 25 percent annually, with particular improvement since 1995.
This qualitative leap in tourism performance resulted from upgrading the physical and information infrastructures, he said, adding that one example was airport construction and modernization of air and sea ports.
The President went on to say that the plan was now a million more tourists, every year, for the coming 10 years with hotel capacity rising to 15,000 extra rooms a year.
This means, he said, taking the current number of tourists, which stands at 8 million, and pushing it up to 18 million, which in turn will generate 2 million more jobs.
The President explained that the private sector was a key to those plans, such that the private sector had to fulfil its responsibilities with the encouragement and opportunities granted by the government.
The private sector, he added, had to invest at least LE 8 billion in tourism over the coming years to absorb the new entrants into the labour force.
President Mubarak also said more upgrades will be made to the taxation sector in the coming period, and those incentives that had been lifted with tax law reforms would be compensated by other means.
The President said Egypt was now living in the air of open skies an era fraught with challenges but also promising valuable opportunities.
We have to open ourselves up to free and fierce competition, phase by phase, with constant high tech upgrades, so that we can weather the onslaught of competition and reap the benefits.
We must build on our previous successes of the past twenty years, striding forward to new horizons promising well-being for all, the President said.
Presidential Spokesman Suleiman Awwad announced that the President`s meeting with the Supreme Tourism Council was intended to underline the importance of the council.
The spokesman explained that the council would be presided over by the Prime Minister and not the Minister of Tourism.
He added that from now on the council would hold meetings on a regular basis, at close intervals, and submit a report of its activities and decisions directly to the President.
Ministers will also participate directly in the council`s deliberations, and not as previously through ministerial representatives, Mr. Awwad said.
The meeting also covered the link between tourism and civil aviation, which requires a high degree of coordination between the two ministries, the President added.
The meeting also dealt with the amended labour law, which stipulates that 1 percent of tourist sector`s profits go towards training of new skills which is a key component in upgrading human resources in this sector.
The President was adamant, the spokesman said, on this point, adding that the nature of the private tourism sector meant that the General Union of Tourism Chambers should conduct training.
The meeting, Mr Awwad said, also assured that no new fees would be added for the services provided by the council, without the council`s approval. The council should also review fees already levied on the tourist sector.
The newly enlarged Luxor International Airport, comprising a new three-storey departure and arrival terminal now has a capacity of 7 million passengers a year.
It includes six arrival and departure halls, one VIP lounge, administrative buildings and passport control facilities.
The LE 450 million terminals, built on an area of 50,000 square meters, can cater for 4,000 passengers per hour.
The building of this terminal is part of government plans to upgrade the nation`s airports, notably in tourist destinations -Luxor, Aswan, Sharm el Sheikh, and Hurghada.
Following the presidential speech the President met with many prominent businessmen and investors in the tourist industry to learn from their experiences and exchange views.
The President was earlier welcomed by the Minister of Civil Aviation and briefed on the project in Luxor.
For his part, Civil Aviation Minister Ahmed Shafik reiterated President Mubarak`s directives on the need to implement the Open skies policy gradually in order not to harm Egypt`s national aviation sector.
The Minister added that his ministry`s three priorities include constant upgrading of aviation facilities to match international standards, partnership with foreign expertise and modernization of EgyptAir.
Minister of Tourism Ahmed AL Maghrabi said tourism promotion must be a strategic approach embraced by all categories of the society.
He said a five year promotion campaign would be launched soon to explain the direct gains that could be achieved by citizens through the good treatment of tourists and commitment to the original principles of hosting.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
