Wadi Degla Developments signed a contract to develop the tourist resort Magawish in Hurghada with an investment of EGP 1.6bn.
Wadi Degla Developments CEO Maged Helmy signed the contract with chairperson and managing director of Misr Travel Rashad Ahmad Rifai. Misr Travel is a subsidiary of the Holding Company for Tourism, Hotels, and Cinema Companies (EGOTH), and Wadi Degla Developments will comprehensively develop the resort over eight years.
Helmy stated that the total expected revenues from the project amount to EGP 2.3bn. Misr Travel would gain EGP 670m of sales revenue, as well as the development of 441 rooms in Magawish and 400 rooms in 4-star hotel Blumar El Sokhna.
Helmy pointed out that Wadi Degla Developments has paid EGP 50m immediately after signing the contract. Additionally, cheques amounting to EGP 400m were handed over as a minimum of expected cash revenues.
“The comprehensive development operations of Magawish Resort are divided into two parts: the first is the development of all existing facilities and units inside the village, including hotel units, restaurants, cafeterias, and the reception building. This also includes developing public service areas such as transformer rooms, reservoirs, the lifting station, shops, and bazaars,” Helmy explained. “The second part deals with the construction of new buildings such as Wadi Degla Club, in addition to a school, hospital, and huge commercial area dedicated to business centres, on a total area of 105,000 sqm.”
He revealed that the project will be divided into eight phases that are to be implemented gradually and in accordance with a specific timetable.
Helmy noted that the signing of the contract to develop Magawish Resort is the first executive step to convert the Magawish Resort into a new place, representing a major paradigm shift in the field of integrated tourist communities. The total size of Magawish Resort amounts to 842,000 sqm.
Helmy added that this would have a positive effect on the city of Hurghada and the Red Sea governorate as a whole, and would thus contribute to the ancient governorate regaining its tourist leadership.