Announcement of IFC Supports Tunisian Hotel Project a Joint Venture Between Local and British Tour Interests on April 2, 1973

, • HOLD FOR RE.i:,.EASE. I INTERNATIONAL FINANCE CORPORATION . 1 8 1 8 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE, EXECUTIVE 3-6360 IFC Press Rele~se ~o. 73/5 For Use in f:orni ng liewspapers of Mond&y~ April 2, 1973 IFC Supports.Tunisian Hote_l Project Joint Venture Lletween.Local_and_eritish Tour _Interests With an investment of $1.9 mi11ion the International Finance Corporation (IFC) is Jc;~ing with Tunisian interests and a British international tour operator in an $1?.4 mi11ion tourist hotel project in Tunisia. The project is to bui Jd and operate a 2,140 bed tourist class hotel at Ska;1es, on the coast about 37 miles south of Tunis. The hotel Ni11 be an important element in the ~nost rapidly deve1oping sector of the local tourist market, that catedn~J • for middle income visitors who travel to i,!orth iifrica for one or two Neek holidays in or~anized groups. The local sponsors of the project, which will be 50 per cent Tunisian-owned 11 are ;1r • .'\ziz f1i1ad~ who oivns the second largest travel a:-1ency in Tunisia and has other loct11 tourist interests, the Socie'°te Nationale c!' lnvestissement (SNI), a development finance institution, and th~ Cor.ipagnie Financiere et Touristique (Cofitour); a tourist promotion 9r0up. The British sponsor is Thoti;son Holi~iays~ Ltd., who own several hotels in the Hediterranean area and their own charter airline. Backnround -----·- Tunisia is well-placed as a tourist center. It has some of the finest beaches in the ,teditcrranean, a pleasant climate:1 historical sites and is easily accessible by tourists from Europe. In the decade 1961-1971 the number of foreisn • visitors increased by 30 oe.r cent a year, reaching 640., 000 in 1~)71. In the same more • - 2 - period earntnrs from tourism rose frorn $3 ,;1J11ion to an estimated $110 million. It is expected that by 1981 the number of visitors will reach 1 .5 million and that 82,000 new hotel becls will be needed. Th,~ fJ rowth in tourism has a 1 ready 1e~ to a sher taJe of hote 1 capacity, and tour operators have found it increasin~ly difficult to accommodate their clients with the result that they are no\t.J ht~:~1inniny to build their own hotels in Tunisia. J•.mon~i these t,1e new hote 1 v,i 11 be th~ 1a ryes t of its type. It is expected to handle 65~00) :3 uests annually, primiJri ly cl ic=:nts of Thomson '.lo1 idays. Fi_nanc]ng ' et Touristique Rym. The hotel will be owne<l by Soci,ti Hoteli~re Th•; uajor part of the IFC inv~sts.1ent consists of a $1.6 million loan. ,Jther loan funds will come fror;; the Societe [~ationale d'lnvestisse111€.nt and the Cor,ipasnie • Financiere et Touristique, in both of which IFC has invested, and fro1;. 1oca1 L-:-,ks. IFC will also subscribe $:J.3 r:1illicn (10 per cent) to the equity capital~ of Hhich Thomson :101 idays Ltd. wi 11 hold 4v per cent, Nith the re.nainin~ 50 per cent held by :·1r. Aziz ,Hlad, S!'JI, Cofitour anJ othe.r Tunisian investors. Economic Effects ·-----,·--~ The t1rojectJ \·'Jhich is expected to earn an annual average of $7 .2 mi 11 ion in foreiJn exchanye, will be under Tunisian 1i1~.rna~Je1nent, and wi 11 provic.!e direct employ- ment for 460 ,·,orkers in winter an,.! 660 in sun-tier. It will fit into the Tunisian Govern~ent•s policy of deve1opin£ touris~ throu0h rrivate enterprise and will also contribute to openint: up a hitherto less dev~lopec arezi of the Tunisian coast. •fith this commitment the total of !~~ investments in Tunisia now arliounts to $16. 6 mi 11 ion • • - 0