Egypt Allocates Over $526 Mn to Develop ‘Great Transfiguration’ Project in St. Catherine

Egypt has allocated more than 25 billion Egyptian pounds (about $526 million) to develop the “Great Transfiguration” project in the city of St. Catherine in South Sinai, amid a rebound in tourist arrivals to the country, a government official told Asharq. 

Launched in 2021, the project aims to revive the spiritual and religious significance of St. Catherine and position it as a global destination for spiritual, mountain, eco, and wellness tourism. The development spans around 1,500 feddans and includes 14 integrated components.

According to the official, investments earmarked for hotel facilities alone amount to 12 billion pounds, fully financed by the New Urban Communities Authority. Construction costs have risen due to the area’s rugged mountainous terrain, the official added.

Egypt welcomed around 19 million tourists last year, marking a 21% increase compared with 2024. The growth was driven by improved security conditions, lower travel costs following the depreciation of the Egyptian pound, and strong momentum generated by the opening of the Grand Egyptian Museum in the final quarter of the year.

In addition to hotels, the project includes service facilities, administrative and sports buildings, a visitor reception hall, commercial areas, and sustainable housing. Plans also cover the construction of power stations and upgrades to major road networks to improve accessibility.

Under contracts signed between the government and two international hotel operators in 2024, hotel facilities are scheduled to be handed over to Steigenberger and Marriott, with official operations expected to begin in the first quarter of this year, the official said.

Among the facilities set for delivery is a mountain hotel built on an area of 12,900 square meters, featuring 144 rooms and suites, as well as the Al-Zaytouna district, which includes 21 hotel complexes with a total of 546 rooms.

The official expects the entire “Great Transfiguration” project to be completed in the first half of the year, citing strong government backing due to its anticipated role in boosting tourism revenues and generating new sources of foreign currency.

Egypt is targeting more than 21 million tourist arrivals this year, surpassing last year’s record, Tourism Minister Sherif Fathy said previously. To accommodate the expected growth, the government plans to increase investments in the tourism sector by 60.5% to about 116.2 billion pounds in the 2025–2026 fiscal year.