Over 700 tourism projects in progress nationally

The number of hotel projects in progress under the tourist investment programs by the Algerian authorities, today, is 763 with a total cost of over DZD 410 billion. The tourism industry and handicrafts aim to raise its capacities, currently estimated at 94,000 beds, and create more jobs, officials from Ministry told APS. The hosting capacity will increase, with these projects, by 86,000 additional beds including 36,000 more new job positions to be created, according to the same sources, who recalled the facilities granted by authorities to investors in the field of tourism through the banking credit and housing supply for tourism projects particularly in the high plateaus and southern regions. Besides, US$1billion was allocated to the rehabilitation of many hotel facilities in the public sector across the country, carried out after Independence and during the 70s. These ambitious projects are, currently, in progress particularly in the regions which offer significant potential for tourism thanks to the efforts of the authorities to revive the sector and the recent decision in favor of the rehabilitation of zones of touristic expansion (ZET). Algeria has, currently, 207 ZET opened to investors on an area of 56,000 hectares. Seven tourism poles of excellence will be achieved in this context and will be divided into regional centers (north-east, north-central, north-west, south-east-oasis, and south-west-Touat-Gourara). For this purpose, facilities are granted by the State for the provision of land bases for tourism projects by conducting land development recorded under the financial year 2012. Thus, the granting of property by auction is canceled and replaced by the concession of land over-the-counter (OTC) within the areas of State, or a sale under the price set by the State. Incentive measures to boost tourism sector In this framework, the supplementary financial act 2009 (LFC) includes nine incentive measures of economy, finance and tax aiming to boost tourism. These measures aim to the implementation of “the Master Plan for tourism development (SDAT) in 2030” which makes of tourism a support activity to the economic growth through the creation of permanent jobs. It is also about the reduction of the VAT (value added tax) of 17 per cent on the benefits related to tourism, hotels, spa, rating catering, travel and tourist transport. LFC 2009 provides investors a “reduction of 50 per cent in the highlands and 80 per cent in the South regions on the cost of the concession of land needed to the realization of tourism investment projects.” Investors also receive a “bonus from 3 to 4.5 per cent for tourism projects to be achieved respectively in the northern and southern provinces.” LFC 2009 provides for the establishment of an investment assistive device through “the support fund for investment, promotion and quality of tourism activities” exemption from registration in the incorporation of companies activating in tourism as well as capital increase. In addition, the tourism sector facilitated investment by partnering with six public banks. In this context, six agreements were signed, last February, with banks to facilitate access to credit for financing tourism projects. An investor’s guide containing information on tourist facilitations provided to investors and laws and decisions relating thereto has been published.