[nextstepguy]

Egypt's tourism revenues hit a record high of $13.6 billion in FY2022/2023. Spending less than 10% to increase the purpose of choosing this country as a destination sounds reasonable, but as long as the P&L balances, I don't see why not.

[bobthepanda]

The problem is the rest of the balance sheet is pretty red. The government is spending $60B it does not have to build a new capital, and has already taken IMF lending. https://www.nytimes.com/2022/10/08/world/middleeast/egypt-ne...

[dangus]

Egypt’s debt to GDP ratio is falling and is lower than the USA.

https://www.statista.com/statistics/377984/national-debt-of-...

[resolutebat]

That's a pretty low bar, and more importantly, Egyptian debt is by and large not in Egyptian pounds, meaning they can't just print their way out of trouble.

[bobthepanda]

The middle of the graph, the peak, is the current year.

It has not started falling yet, and it won’t particularly if they keep announcing new projects.

[objektif]

You need to worry about the rest of the spending. This project will bring many many times of its cost as profit over the years.

[bobthepanda]

I think it is pretty safe to have doubts about Egyptian government profit projections. They also said the same thing about doubling the Suez canal but revenues did not meet projections and now they are planning to expand it again. https://www.middleeasteye.net/news/egypt-plans-expand-suez-c...

[bawolff]

It won't if the rest of the country collapses from being overleveraged.

[ekianjo]

revenue is not profit

[sinaid]

it is sort of for the government, most of it will end up being taxed one way or another, or at a minimum support people so the government doesn’t have to