Orascom Development Holding has reported a 13.2% decrease in revenues to CHF 164.7m during the first nine months of 2013, compared to CHF 189.6m over the same period in 2012, with total losses reaching CHF 75.5m.
In their condensed consolidated financial statement, the company attributed the losses it suffered in Egypt to “the political events… since January 2011, [which] continue to impact the economy… and the tourism sector in particular.”
The company said domestic political events have significantly impacted the group’s operations, adding that the situation is still insecure.
“With Egypt in specific, the group has endured two challenging years with the current political situation and its inevitable effect on the economy, with security and political uncertainty being the primary issues of concern for tourists and investors alike,” the company said.
Orascom Development’s profits in the hotels’ sector reached CHF 96.5m, a 7.6% decline compared to the CHF 104.5m the company earned in 2012.
Orascom experienced another drop in the real estate and construction sector, with CHF 32.5m revenues during the first 9 months of 2013, marking a 32.1% decadence compared to the company’s 37.8m profits during the same period in 2012.
“This doesn’t mean that Egypt’s tourism and foreign investment will not recover; in fact, Egypt’s tourism suffered a hard blow in 1997 and almost immediately recovered a year later,” the company added.
Orascom added that Egypt was able to convince several countries, including Germany, Ireland, Austria, Bulgaria, Sweden and Switzerland, to lift the travel ban on Egypt.
The company added that it remains optimistic for 2014.