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Viewing cable 09CAIRO710, EGYPT'S ECONOMY: APRIL 27 WEEKLY PRESS ROUND-UP

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Reference ID Created Released Classification Origin
09CAIRO710 2009-04-27 09:36 2011-08-24 16:30 UNCLASSIFIED Embassy Cairo
VZCZCXYZ0001
RR RUEHWEB

DE RUEHEG #0710 1170936
ZNR UUUUU ZZH
R 270936Z APR 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 2283
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
UNCLAS CAIRO 000710 
 
SIPDIS 
 
STATE FOR NEA/ELA 
 
E.O. 12958:  N/A 
TAGS: EAGR ECON EINV EFIN ETRD PGOV EG
SUBJECT:  EGYPT'S ECONOMY:  APRIL 27 WEEKLY PRESS ROUND-UP 
 
1. (U) The following are notable economic news stories that appeared 
over the past week in the Egyptian press: 
 
---------------------- 
Public Sector Salaries 
---------------------- 
 
2. (U) The Egyptian draft budget for the fiscal year 2009/2010 
proposed by the Ministry of Finance includes a call for an increase 
in public sector salaries. The Egyptian parliament is currently 
discussing the new budget, but has not decided on the rate of the 
increase. President Hosni Mubarak has publically committed to the 
annual raise, known in Egypt as the "social allowance."  Mubarak 
says the raise is needed to preserving workers' rights and job 
security. The annual raise is expected to be at least 10% of the 
basic salary (which only accounts for 15-20% of gross pay). The 
draft budget contains LE86 billion (US$15.36 billion) allocated to 
public sector wages. The average annual wage for public sector 
employees in Egypt is LE15,000 (US$2,680). (Ahram and Akhbar, 
4/22/09, 4/25/09) 
 
------------------------------------ 
Egyptian Hotel Occupancy Rates Surge 
------------------------------------ 
 
3. (U) Occupancy rates in hotels in many tourist areas exceeded 80% 
during the Easter and spring holidays, reaching 100% in some hotels. 
 Reports received by the Ministry of Tourism indicate hotels and 
tourist resorts saw increased activity through the end of April, due 
to the number of local and foreign tourists spending the spring 
holidays in Egypt. The reports indicated occupancy rates in hotels 
in the north coast, Alexandria, Marsa Matrouh, Ain Sokhna and Ras 
Sedr areas exceeded 90%, while rates in Sharm El Sheikh, Hurghada 
and floating hotels/boats between Luxor and Aswan were over 80%. 
Italian and Russian tourists favored Sharm El Sheikh and Hurghada, 
while German, British and French tourists traveled to Luxor and 
Aswan. Hotel rates have been reduced by 30-40% in most tourist areas 
to attract travelers, with the exception of the Ain Sokhna area, 
where hotels have maintained their prices. (Alam Al Yom, 4/21/09) 
 
--------------------------------------------- -- 
Achieving Self Sufficiency in Seven Major Crops 
--------------------------------------------- -- 
 
4. (U) The Ministries of Agriculture and Land Reclamation, and of 
Irrigation and Water Resources asserted that the GOE is committed to 
achieving self-sufficiency in the production of seven major crops. T 
he government plans to achieve at least 80% self-sufficiency by 2020 
in the production of wheat, rice, sugar, potatoes, beans, lentils, 
and edible oils, through a LE140 billion (US$25 billion) 
agricultural expansion project financed with both private and public 
investment.  An additional LE60 billion (US$10.7 billion) will be 
used to increase agricultural productivity.  Agriculture constitutes 
around 15% of Egypt's GDP and 20% of exports.  The sector employs 
around 27% of the labor force.  (Akhbar, 4/23/09) 
 
--------------------------------------------- 
Egypt Cancels Safeguard Duty on Indian Cotton 
--------------------------------------------- 
 
5. (U) Egypt has cancelled the safeguard duty on Indian cotton yarn 
and cotton textiles imports. India is the biggest exporter of cotton 
yarn to Egypt.  In January, Egypt imposed a 25 percent fee on cost, 
insurance and freight (CIF) value, over and above import duties, for 
one year. The Confederation of Indian Textile Industry (CITI) said 
Egypt's decision to eliminate the fee would marginally benefit the 
industry, which has been hit by slowing exports. (ANSAmed 04/24/09) 
SCOBEY