Egypt Tourist Alert (May 25, 2004)
Tourist should be aware that a new law Number 89/2004 launched by the Egyptian Government on May 22nd, 2004 and effective immediately, increase the sales tax for hotels from five to ten percent. Obviously this will result in a five percent increase in most hotel rooms.
However, see the following press release:
Egyptian Ministry of Tourism
International Tour Operators Granted Interval Period till November 1st, 2004 In a swift response at the Egyptian Ministry of Tourism and with reference to levying of taxes on touristic services, the Minister of Tourism, Dr. el Beltagui, presided over a series of meeting with heads and leaders of the private Egyptian tourist sector earlier this week.
The decision taken by heads of the Federation of Egyptian Tourist Chambers, the Egyptian Hotels Association and Tourist Chambers, along with the Egyptian Travel Agents Association in accordance with the advice of Dr. el Beltagui, resulted in a declaration/confirmation that the Egyptian private sector will bear the above mentioned increase of tax since date of issuance on the 23rd of the current month, from May 2004 through October 31st, 2004, without imposing any burdens or increases on international tour operators.
Therefore, the levy of taxes will be applicable to international operators as of November 1st, 2004.
"This interval period will allow time to all concerned parties to take appropriate measures, so business continues, and is certainly a true sign of solidarity with our partners abrad", commented the Minster earlier today.