(AFP Photo)
By Ahmed Saad
The Civil Aviation Ministry has resumed negotiations with the African Development Bank to secure a pending $418m loan, to be used to construct a new passenger reception building at the Sharm Al-Sheikh international airport.
Abd Al-Aziz Fadl, Minister of Civil Aviation, stated that the loan would be paid back over a period of 20 years, with an initial 7 year grace period. After construction of the new building, the airport’s absorption capacity is expected to increase from 10 to 18 million passengers.
He stated that the ministry and airline companies will be pay back installments of the loan through revenues reaped from sales.
According to a report released by the South Sinai Hotels Chamber, the region currently represents 35% of the country’s hotel sector, with a total of 225,000 rooms. The region’s revenues further represent 45% of all yearly tourist revenue in Egypt.
He stated that the upcoming planned US strike on Syria will have a negative effect on tourist rates, considering persistent lapses of security seen throughout the country and the region.
Last July witnessed a 24.5% decrease in tourist rates, with the sector losing 47% of its revenues according to a report released by the Tourist Ministry.
Fadl did however point out that a US strike on Syria may divert more planes into Egyptian airspace for transit purposes, which would have a positive effect on revenues from fees reaped by the ministry and companies.
He stated that Ibrahim al-Sharrif, Chairman of Egypt’s Civil Aviation Authority, to represent the ministry in the Committee of 50 charged with amending the constitution.
El-Hamy al-Ziyat had previously called for the creation of a committee made up of representatives from the country’s tourist chambers, and the ministries of civil aviation, in order to discuss amendments proposed to the constitution.
Translated from Al Borsa newspaper
