Home | | Contact Us

New Regulations for Touristic Resta

New Regulations for Touristic Restaurants Issued by Minister of Tourism
Background Licensing touristic restaurants is one of the most covered subjects in laws and regulations over the last few years, but one which continued to fail to meet investors requirements in a clear and transparent system which would allow them to operate in a suitable environment, needed in a sector which could be one of the highest employers in Egypt especially for SMEs. In this context, the Minister of Tourism has issued Decree No. 222 of 2012 (Egyptian Gazette, Issue No. 88 (bis), April 15th, 2012) which may be considered an important step towards the simplification and improvement of the business environment in the tourism sector, and the abolishing of several preceding decrees. From that angle the new Decree must be considered a positive step. Establishments Subject to the New Decree The term “touristic establishment” in the context of the new Decree is defines as all places, restaurants and cafeterias established for the purpose of service and consumption of food and beverages as well as for fast food and those within commercial and touristic areas. The Decree excludes from its scope of application popular restaurants, those which do not meet touristic requirements, those in railway and metro stations and public transport areas, as well as in universities and schools. The License The application for a license is submitted to the Department of Touristic Establishments in the Ministry of Tourism, and requires meeting certain conditions with respect to: • Location in a touristic area and the safety of the premises. • The manager in charge, so that he/she has a high degree and is in command of at least one foreign language. • Certain information about the establishment. • Payment of fees, and continuing to pay an inspection fee annually equal to 5% of rental value. The Decree also describes the procedures for obtaining the license, appeal against its refusal, and the procedures for granting additional time to complete the requirements and to change its terms. Alcoholic Beverages and Music The Decree also describes the additional requirements for obtaining a license to serve alcoholic beverages (provided the establishment is at least three star rated, the license is personal, and the place is at least one hundred meters away from the nearest place of worship, hospital, school or university, industrial workshop, factory or warehouse). The Decree further states the conditions for obtaining a license to provide music and dance performances (at least four stars, and one hundred meters from the nearest place of worship, and to observe general ethical standards and environmental guidelines on noise pollution). Comment Substantively, the Decree does not add much new because it repeats most of the provisions that were already in various laws and decrees, and often contradictory. However, the most important aspect in it is that – in terms of form – it eliminates totally any overlap and therefore provides the investor in touristic restaurants a clarity and certainty that investors in other fields seldom find. In that sense, the Decree is a model to be followed.
Background Licensing touristic restaurants is one of the most covered subjects in laws and regulations over the last few years, but one which continued to fail to meet investors requirements in a clear and transparent system which would allow them to operate in a suitable environment, needed in a sector which could be one of the highest employers in Egypt especially for SMEs. In this context, the Minister of Tourism has issued Decree No. 222 of 2012 (Egyptian Gazette, Issue No. 88 (bis), April 15th, 2012) which may be considered an important step towards the simplification and improvement of the business environment in the tourism sector, and the abolishing of several preceding decrees. From that angle the new Decree must be considered a positive step. Establishments Subject to the New Decree The term “touristic establishment” in the context of the new Decree is defines as all places, restaurants and cafeterias established for the purpose of service and consumption of food and beverages as well as for fast food and those within commercial and touristic areas. The Decree excludes from its scope of application popular restaurants, those which do not meet touristic requirements, those in railway and metro stations and public transport areas, as well as in universities and schools. The License The application for a license is submitted to the Department of Touristic Establishments in the Ministry of Tourism, and requires meeting certain conditions with respect to: • Location in a touristic area and the safety of the premises. • The manager in charge, so that he/she has a high degree and is in command of at least one foreign language. • Certain information about the establishment. • Payment of fees, and continuing to pay an inspection fee annually equal to 5% of rental value. The Decree also describes the procedures for obtaining the license, appeal against its refusal, and the procedures for granting additional time to complete the requirements and to change its terms. Alcoholic Beverages and Music The Decree also describes the additional requirements for obtaining a license to serve alcoholic beverages (provided the establishment is at least three star rated, the license is personal, and the place is at least one hundred meters away from the nearest place of worship, hospital, school or university, industrial workshop, factory or warehouse). The Decree further states the conditions for obtaining a license to provide music and dance performances (at least four stars, and one hundred meters from the nearest place of worship, and to observe general ethical standards and environmental guidelines on noise pollution). Comment Substantively, the Decree does not add much new because it repeats most of the provisions that were already in various laws and decrees, and often contradictory. However, the most important aspect in it is that – in terms of form – it eliminates totally any overlap and therefore provides the investor in touristic restaurants a clarity and certainty that investors in other fields seldom find. In that sense, the Decree is a model to be followed.