The Red Sea Governorate in Egypt has issued formal notifications to hotel and tourist facility managers across various cities, demanding prompt payment of the 1% fee on guest bills. The governorate warned that failure to pay within the specified timeframe would result in necessary legal and administrative actions to collect debts. According to the governorate, the fee collection is in line with the Egyptian Constitution and the Local Administration System Law.
The 1% fee on hotel and tourist village guest bills is intended for the Local Services and Development Fund of the Red Sea Governorate. The governorate's decision is based on Governorate Resolution No. 512 of 2009, which was approved by the Local Popular Council and the Council of Ministers. The governorate emphasized that paying the fee is a legal obligation, and failure to do so would lead to necessary actions to collect the debt.
The governorate has given the hotels and facilities 15 days to settle their debts or provide proof of payment. The notification warned that failure to comply would result in administrative seizure, in accordance with Law No. 308 of 1955. The governorate may initiate procedures to seize bank accounts, movable assets, and real estate properties of the facilities if the debt is not paid.
According to the governorate, the administrative seizure may begin with contacting the Central Bank to freeze the accounts of hotels or companies in Egyptian banks. If the account balances are insufficient to cover the debt, the governorate may proceed to seize movable assets owned by the hotel or company. The governorate also reserves the right to seize real estate properties owned by the facility, as per the law.
The Red Sea Governorate's move aims to follow up on collecting financial dues allocated to the Local Services and Development Fund. The governorate emphasized the commitment of tourist and hotel facilities to pay the due fees on time and avoid accumulating debts. The governorate's decision reflects its intensified efforts to collect the 1% fee from tourist facilities.
An Egyptian lawyer, Dr. Ibrahim Muhammad Ali, stated that the Administrative Court of Qena issued a ruling that canceled the Prime Minister's decision to impose a 1% local fee on hotel and tourist facility guest bills. The ruling cited constitutional and legal principles governing the imposition of taxes and fees. Ali noted that the court's decision was based on the fact that taxes and fees can only be imposed or modified by law.
The Red Sea Governorate's decision to give hotels 15 days to pay the 1% fee demonstrates its commitment to collecting due fees. The governorate's actions are in line with its efforts to ensure that tourist facilities comply with the law and pay their dues on time. The 1% fee is an essential source of revenue for the Local Services and Development Fund of the Red Sea Governorate.
Key points
- The Red Sea Governorate has given hotels and tourist facilities 15 days to pay a 1% fee on guest bills or face administrative and legal consequences.
