Minister of Tourism Extends Ban on

On 8 February 2018, the Minister of Tourism issued decision No. 63 of 2018[1] extending a previous decision to prohibit the establishment of new tourism companies for the duration of one year starting from the end of the preceding decision this February. The decision is controversial due to the decline in Egypt's tourism sector since 2011. Prior to 2011, Egypt's tourism sector contributed significantly to the country's GDP, representing approximately 6.5% of national income, 40% of total services exports, and 6% direct employment. The sector generated more than $10 billion annually, compared to an estimated $5 billion per annum currently. Decision No. 63 of 2018 signals a continuation in the Ministry of Tourism's policy towards the tourism sector and its current shortcomings. In March 2011, the government issued Decision No. 84 of 2011 in response to changes in the political and economic climate that compromised security. The decision was originally issued on a temporary basis, however, the long-lasting changes in the tourism sector were used as reason for its extension. The decision has been renewed in March 2012, March 2013, March 2014, March 2015, March 2016, February 2017, and now February 2018. Made worse by the collapse of a Russian plane in 2015, Egypt's tourism industry continues to suffer from security issues and intense media coverage. Other obstacles to the sector's flourishment is the lack of sufficient financing and incentives for small and medium businesses, and the lack of sustainable projects to support hotels and tourism-related establishments to maintain their workforce during a time of significant economic recession. The ban on the establishment of new tourism companies, and its extension for many years is a disincentive for potential investors in the industry, and is a setback to the principles of fair competition amongst companies.   [1] Minister of Tourism Decision No. 63/2018 prohibiting the establishment of new tourism companies for the duration of one year, Egyptian Gazette, Issue No. 32 (cont.), 8 February 2018.