Algeria Renounces the Privatization of Hotels

Algeria government has renounced entrusting the management of state owned hotels to private operators, Minister of Tourism, Smail Mimoune, said Monday.

Mr Mimoune told the national radio that “the state owned hotels will not be privatized; they are to remain the property of the government,” adding that “a budget of 580 million Euros has been reserved by the government for the modernization of 70 hotels,” dating back to the seventies. 

Algeria’s most prestigious 5 stars El Aurassi Hotel has reopened on Sunday, after enduring two year renovations worth 72 million Euros. 

In 2007, El Aurassi and the famous El Djazair Hotel (formerly known as Saint-Georges) were both suggested for a renewable 30 years business leasing contracts. 

On another side, Minister of Tourism specified that the tourism sector in Algeria “suffers a deficit in terms of accommodations, as there are only 90 thousand beds, currently.”

He further added that this number “will be reinforced with 70 thousand additional beds, as soon as the 700 ongoing projects, which have been reserved a 4 billion Euros budget, are delivered. “

The hydrocarbons dependent nation hopes to make of tourism industry another lucrative source of wealth, taking profit of the various potentialities of the North African country.