To stimulate tourism, the Council of Ministers decides an incentive to encourage the construction of hotel facilities
At its meeting today, Wednesday, headed by Prime Minister Dr. Mostafa Madbouly at the council’s headquarters in the new capital, the Council of Ministers approved several important decisions; During the meeting, a draft decision of the Council of Ministers was approved to adopt an incentive to encourage the process of building, establishing or operating some hotel facilities within the scope of local administration units.
This decision comes within the framework of efforts aimed at expanding the establishment of hotel facilities and units and encouraging work in this field. The draft resolution stipulates that its provisions apply to hotel establishments: hotels, tourist villages, boutique hotels, heritage hotels, eco-hotels, and the third type of “Holiday Home” apartment units, and that projects to build, establish or operate the aforementioned hotel establishments, intended to be established or already established, within the scope of local administration units, will be granted a conditional incentive to exempt lands or buildings, as the case may be, from paying what is due in exchange for improvement for changing their use. From various activities to hotel activity, in accordance with the provisions of the Building Law.
To enjoy the stipulated exemption, it is required to adhere to a set of conditions and rules, including the approval of the Ministry responsible for tourism affairs on the suitability of the land or building for exploitation in hotel activity, and the approval of the Supreme Council for Planning and Urban Development to change the use of lands or buildings, as the case may be, to hotel activity.
It is also required to enjoy the stipulated exemption. Accordingly, the activity must begin with regard to the lands whose use is intended to be changed to any of the aforementioned hotel facilities, within two years for projects from 50 to 100 rooms, three years for projects with more than 100 rooms and up to 300 rooms, and four years for projects with more than 300 rooms.
With regard to the existing buildings whose use is intended to be changed to any of the aforementioned hotel facilities, it is required to enjoy the exemption, starting with Commencement of activity within one year for projects of 50 to 100 rooms, two years for projects of more than 100 to 300 rooms, and three years for projects of more than 300 rooms.
As for the lands whose use is to be changed to the third type of holiday apartment units (Holiday Home), the activity is required to begin within two years for projects of eight units to 50 units, and three years for projects of more than 50 units, while the requirement for existing buildings intended to change their use to this type, and the start of activity within a year for projects from eight units to 50 units, and three years for projects of more than 50 units.
It is permissible by a decision of the Prime Minister, based on the proposal of the minister responsible for tourism affairs, to extend these periods for an additional year if the percentage of completion of the licensed works reaches 80%. And more.
It is also required to enjoy the exemption that the stipulated hotel facilities must be built, established or operated for the purpose of hotel accommodation on a rental basis only, in addition to not disposing of the exempted lands or buildings, as the case may be, before starting to practice the hotel activity based on a license from the Ministry concerned with tourism.
The draft decision stipulates that the competent governorate shall determine the value of the improvement due for the improvement. Changing the activity of lands and buildings, and notifying the Ministry responsible for tourism affairs of this value, as the Ministry records it as an incentive granted to the projects referred to, and announces to the owners of the lands or buildings that have been decided to be exempted the value of the incentive granted, by a registered letter with acknowledgment of receipt.
The draft decision also stipulates that in the event of violating the conditions and rules stipulated in this decision, or in the event of canceling the facility’s license in accordance with the provisions of the Hotel and Tourist Establishments Law, the incentive will be forfeited. Granted pursuant to this decision, the concerned party is obligated to pay the value of the improvement consideration for the change of use due, plus interest equivalent to the interest rate announced by the Central Bank as of the date of the Supreme Council for Planning and Urban Development’s approval of the change of use, in accordance with the provisions of the Construction Law and Law No. 222 of 1955.
The provisions of this decision do not apply to tourist establishments stipulated in the Hotel Establishments Law. And tourism.
The Council of Ministers also approved the minutes of the two meetings of the Ministerial Committee for Resolving Investment Disputes in its two sessions No. (115) held on 7/28/2025, and No. (116) held on 9/1/2025.
The Council of Ministers approved the request of the Ministry of Water Resources and Irrigation regarding the establishment of the Mechanics and Electricity Department. By contracting with the Upper Egypt Electricity Distribution Company to implement the alternative electrical supply to the Wadi Al-Saayda irrigation station (5.4), as well as contracting with the Beheira Electricity Distribution Company to implement the process of connecting the electrical supply to the lifting station (6) Al-Bustan.
This approval comes within the framework of providing and ensuring the stability of the electrical supply to the projects implemented in this region, and in a way that preserves the crops there.
The Council of Ministers was informed With the approval of the Board of Directors of the New Urban Communities Authority in its 210th session dated 10/12/2025 on some requests to allocate lands to a number of companies with a system of selling in US dollars from outside the country, in accordance with the controls and mechanisms approved in this regard, to implement commercial administrative residential, integrated urban, administrative commercial, recreational, residential blocks, nursery, mixed urban, and investment urban, in the cities of: New Sohag, and Minya. New, Sadat, 10th of Ramadan, New Cairo, New Beni Suef, and New Mansoura.
The Council of Ministers approved that the Suez Canal Authority contract to lease the fishing vessel (Rizk 1) owned by the Authority for the benefit of the Southern Red Sea Shipyard Company.
This comes with the aim of operating the ship in the field of fishing of various types in the high seas and territorial waters to support
The Council of Ministers approved the draft decision of the Prime Minister amending some provisions of the executive regulations of Law No. 49 of 1972 regarding the organization of universities issued by Presidential Decree No. 809 of 1975, by establishing the Faculty of Engineering, Sadat City University.
In this regard, It was noted that the establishment of the Faculty of Engineering at Sadat City University comes in response to the state’s interest in science and scientific research in accordance with the sustainable development strategy “Egypt Vision 2030”, and in implementation of the national strategy for higher education and scientific research in this regard, because the establishment of the Faculty of Engineering consolidates the values of scientific research in order to serve the community and solve its problems, in addition to the college’s participation in meeting the needs of the university and the regional region in which it is located and adjacent to it, and considering its establishment a necessity necessitated by the developments of the era and the development of the university, and its need for the Faculty of Engineering to specialize in meeting Community needs.
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