Rashad Refaie: We aim to cut accumulated debts to EGP 150 million by the end of the current fiscal year
Rashad Refaie, chairman of Misr Travel, revealed in exclusive statements to Travel Yalla that an agreement has been reached to transfer ownership of 4 hotels in Luxor belonging to Misr Travel to the Holding Company for Tourism, Hotels and Cinema, namely the fixed "Etap" hotel in Luxor and 3 floating hotels, with the aim of reducing the annual losses incurred by "Misr Travel" amid the severe weakness of cultural "archaeological" tourism in Luxor.
Refaie noted that this decision comes as part of the company's plan to reduce its accumulated debts, which reached EGP 212 million at the end of the fiscal year ending June 30, 2015, after standing at EGP 300 million at the end of the fiscal year in June 2013, before starting to decline to EGP 280 million in 2014.
He explained that the operating losses of the four hotels amount to EGP 17 million a year, noting that the three floating hotels are planned to be moved to Alexandria governorate after a decision was issued on October 5 to transfer their ownership to Al Maamoura Company for Tourism Development, one of the subsidiaries of the Holding Company for Tourism and Hotels, so they can be used as fixed hotels on the beaches, raising their economic viability.
On another note, Refaie said other steps have played a key role in reducing expenses and increasing revenues, most notably contracting with new agents and closing the company's 4 overseas offices, which were in the United States, Japan, Sweden and Italy, saving EGP 5 million a year, while continuing to communicate with and retain foreign agents, and concluding contracts and agreeing on tourist trip programs to Egypt online.
He stated that the company aims to achieve profits of EGP 62 million by the end of the current fiscal year on June 30, 2016, to be used to pay off part of the debts, bringing their total to EGP 150 million, "and thus we will have cut the accumulated debts by 50% in only 3 years," amid the challenges facing the tourism sector.
