Licensing Requirements for Tourist Restaurants and Establishments in Egypt

The sector of tourist restaurants and establishments represents one of the investment sectors experiencing continuous expansion in Egypt, particularly in light of increasing tourism activity and the growth of commercial and entertainment projects. However, conducting such activities is not solely dependent on commercial feasibility or the selection of an appropriate location; it also requires compliance with the legal framework governing the operation of tourism establishments. Failure to satisfy licensing requirements may expose the establishment to legal risks that may extend to administrative closure or revocation of the license.

The current legislative framework governing tourism establishments is represented by Law No. (8) of 2022, which establishes the general regulatory framework for hotel and tourism establishments. Nevertheless, Ministerial Decree No. (222) of 2012 remains the principal executive reference governing the procedures, requirements, and conditions relating to the licensing of tourist restaurants and establishments.

Establishments Subject to Tourism Licensing Requirements

Article (1) of Ministerial Decree No. 222 of 2012 specifies the establishments falling within its scope of application. Such establishments include restaurants, cafés, cafeterias, and premises designated for serving food and beverages for consumption on-site, in addition to establishments offering ancillary services such as fast-food services and consumer delivery services (Take Away).

The provisions of the Decree further extend to shops, restaurants, cafés, pastry shops, cafeterias, and premises designated for serving food and beverages of all types located within airports, shopping malls, archaeological sites, amusement facilities, natural reserves, and tourism-oriented clubs. The Decree also applies to restaurants and establishments affiliated with international and local chains, whether previously licensed by the Ministry of Tourism, licensed by another authority, or not yet licensed.

Article (1) of Ministerial Decree No. 222 of 2012 further exempts certain establishments and premises from the scope of its application on the basis that they do not, by their nature, fall within the category of tourism establishments, unless the relevant operators elect to obtain a tourism establishment license and satisfy the prescribed requirements and conditions. Such exemptions include:

• Cafés, shops, and restaurants serving commonly known traditional food and beverages, regardless of location, except where such establishments are located within airports or archaeological sites.
• Premises serving food and beverages within villages, as well as premises that do not satisfy the specifications prescribed under the Decree or that the Ministry of Tourism determines not to qualify as tourism establishments.
• Premises serving food and beverages located within railway stations, metro stations, public transportation terminals, and popular public areas.
• Premises designated for serving food and beverages within schools, universities, educational institutes, sports clubs, and governmental authorities and entities.

Licensing Requirements and Conditions

The Decree imposes several essential requirements that must be satisfied in order to obtain a license, the most significant of which are as follows:

1- Location and Premises Requirements

Pursuant to Article (3), the Decree requires that the location of the establishment be suitable for the nature of the tourism activity and the services provided and that it be situated in an area compatible with tourism activity or tourist presence. The location must also not fall within areas where the establishment of public premises is prohibited unless a special approval is issued by the Minister of Tourism in accordance with the prescribed regulations.

The building in which the establishment is located must not be structurally unsafe or scheduled for demolition and must comply with all applicable engineering and regulatory requirements, in addition to satisfying the requirements of the General Department of Civil Protection. The Decree also requires the establishment design to comply with food safety requirements to ensure the safe preparation, preservation, and display of food products.

The Decree further requires that the establishment be located at a minimum distance of fifty meters from workshops, factories, industrial premises, disturbance-generating activities, large warehouses, and silos, unless the nature of the establishment’s activity necessitates serving such activities.

In addition, the establishment must have an independent entrance. The Decree also permits the addition of other independent tourism or commercial activities attached to the principal establishment, provided that such activities are intended to serve customers of the establishment or are connected with the nature of the principal activity.

2- Conditions of the Responsible Manager

Pursuant to the same Article, the Decree requires each establishment to appoint a responsible manager who satisfies a number of conditions, including holding an appropriate qualification and demonstrating proficiency in at least one foreign language through an accredited certificate. The responsible manager must also possess practical experience in the same tourism activity for a period of no less than three years for holders of higher educational qualifications and seven years for holders of intermediate qualifications, provided that the experience certificate is certified by the Chamber of Tourism Establishments. The manager must further be fully dedicated to the management of the establishment and possess comprehensive knowledge of food safety fundamentals supported by a certificate issued by the competent authority.

The Decree further requires a foreign manager to hold a valid work permit and stipulates that no final judgment involving crimes affecting honour or integrity may have been issued against such manager. Compliance with this requirement is evidenced through a criminal record certificate in the case of Egyptian nationals or through a certificate of good conduct and reputation authenticated by the competent consulate in the case of foreign nationals.

The Decree also permits an establishment to appoint more than one responsible manager, provided that the scope of work of each manager is limited to the licensed establishment or its branches located within the same city. Furthermore, the license holder must appoint a replacement responsible manager satisfying the same conditions within a period not exceeding two months in the event of the death, dismissal, termination of employment, or loss of any licensing condition applicable to the responsible manager, unless additional responsible managers had already been appointed. Failure to comply may result in the administrative closure of the establishment. In addition, the license of the responsible manager may not be renewed without the approval of the licensed establishment, whether by the license holder or the operator of the establishment.

3- Required Information and Supporting Documents

Article (4) of the Decree specifies the information that must be included in the licensing application, including information relating to the applicant such as name, nationality, qualifications, age, place of residence, correspondence address, and contact details, in addition to information relating to the establishment including its type, specifications, nature of activity, food and beverages offered — where applicable — and its trade name or trademark.

Information relating to the responsible manager must also be included, including qualifications, age, nationality, residence address, correspondence address, prior experience, level of knowledge of food safety fundamentals, relevant courses and certificates obtained, and license number, if any, with such information to be provided separately where multiple responsible managers are appointed.

Furthermore, the application must specify the address and location of the establishment, its area, occupancy basis, and rental value, even where the establishment is owned by the applicant, in addition to the legal form of the establishment, the expected number of employees and their training programs, the number and type of machinery and equipment, the manner of operation thereof, required electrical capacity, total estimated cost of the establishment, and tools or equipment expected to be imported for operational purposes.

With respect to supporting documents, the Decree distinguishes between corporate applicants and individual applicants. Corporate applicants are required to submit the articles of incorporation and published summary thereof, an extract from the commercial register, the companies register publication, details of shareholders or partners, required criminal record certificates, and the opening balance sheet. Individual applicants are required to submit the tax card of the establishment, commercial registration documents, identification documents, criminal record certificates, and documents relating to residency, work permits, and certificates of good conduct for foreign applicants.

The Decree further requires all applicants to submit common supporting documents, including detailed engineering drawings and approved site maps or survey drawings prepared in accordance with the legally prescribed scales, indicating prohibited areas surrounding the proposed establishment location, together with ownership, lease, or exploitation documents, communication details, and proof of payment of the prescribed fees.

Licensing Procedures

Pursuant to Article (2) of the Decree, the licensing process consists of several stages beginning with the submission of an application to the Tourism Establishments Licensing Department at the Ministry of Tourism using the prescribed application form, provided that the application contains all required information and supporting documents.
Subsequently, the competent authority reviews the applications and verifies the submitted documents against the originals before scheduling the required inspection and collecting the prescribed fees.

Regarding fees, Article (5) of the Decree imposes several fees associated with licensing procedures and administration, including inspection fees, review fees, annual inspection fees, fees for issuing replacement licenses in cases of loss or damage, and fees relating to the licensing and renewal of responsible managers.

The inspection fee must be paid within one week from notification of the preliminary approval of the location and premises and is calculated based on the area of the establishment, with varying rates depending on whether the application concerns an initial license, an amendment to an existing license, or the addition or closure of openings, subject to the applicable statutory minimum and maximum thresholds. Failure to pay within the prescribed period results in the application being archived until payment of both the original and additional prescribed fees.

The Decree further requires payment of a review fee in relation to engineering requirements and associated matters, which is calculated according to the area of the establishment, including floors, verandas, open spaces, and roofs forming part of the establishment. Failure to pay the fee or to submit drawings and implement the required engineering conditions results in the application being archived and reconsidered only after payment of the applicable fee, payment of the additional fee, and submission of the required drawings.

The annual inspection fee is calculated as a percentage of the annual rental value of the establishment within the prescribed monetary limits and is increased threefold for establishments licensed to serve alcoholic beverages. The fee is assessed on the basis of the actual rent or the assessed rental value, whichever is higher.

Pursuant to Article (6), the competent authority must issue its decision regarding the license application within thirty days from the date on which a complete application with all supporting documents has been submitted. Failure to issue a response within such period is deemed an approval of the application. The applicant may also challenge a rejection decision in accordance with the legally prescribed procedures.

Penalties Resulting from Violations

Article (31) of the Decree establishes a graduated system of penalties that includes revocation of the license, administrative closure, or temporary suspension of activities depending on the nature and severity of the violation.

With respect to license revocation, such action may apply in cases including where the license holder requests termination of the activity, where the establishment ceases operations for twenty-four consecutive months without an acceptable justification, where the establishment is demolished or relocated, where it becomes unsuitable for tourism operation, where the license was obtained based on false information or forged documents, or where final closure judgments are issued in the cases prescribed by law.

Temporary administrative closure may also be imposed until the causes of the violation are remedied. This applies in cases such as failure to appoint a replacement responsible manager within the legally prescribed period, failure to appoint an Egyptian assistant to a foreign responsible manager, violations relating to employee training obligations, restrictions applicable to licenses granted to foreign nationals, failure to notify the Licensing Department of details relating to the operator or responsible manager, failure to maintain licenses, drawings, and required documents, or failure to comply with operational obligations imposed on the establishment.

The Decree further grants the Minister of Tourism the authority to issue a reasoned decision to revoke or withdraw a license, administratively close an establishment, or temporarily suspend its activities in several cases. These include violations of licensing requirements or violations of the Decree in contractual arrangements or business practices, refusal to implement decisions issued by the competent committees, changing the nature or purpose of the establishment without obtaining a new license, or using names, descriptions, or information inconsistent with the information recorded in the license and the records of the Ministry.

Such cases also include violations relating to the death of the license holder, employment restrictions concerning women and children, failure to display the identifying sign of the tourism establishment and its classification rating on the establishment and related publications, violations of restrictions governing the service of alcoholic beverages during legally prescribed occasions and periods, engaging in activities or entering into arrangements that harm the reputation of Egyptian tourism or violate public order and public morals, violations relating to delivery service requirements, preventing Ministry inspectors from carrying out their duties, failure to comply with membership obligations of the Chamber of Tourism Establishments or its decisions, failure to pay prescribed subscriptions, or failure to pay annual inspection fees.

Conclusion

The foregoing demonstrates that the licensing of tourist restaurants and establishments in Egypt is not merely a formal administrative procedure but rather constitutes an integrated regulatory framework intended to ensure service quality, maintain public health and safety standards, and regulate the operation of establishments in a manner consistent with the requirements of the tourism sector. Ministerial Decree No. (222) of 2012 comprehensively regulates the establishments falling within its scope, the conditions applicable to the location, establishment, and responsible manager, the required information and documentation, licensing procedures and fees, as well as the penalties arising from violations of its provisions.

Accordingly, compliance by investors and establishment owners with legal and regulatory requirements from the initial stages of establishing a project does not merely serve the purpose of avoiding violations and penalties. It also contributes to maintaining operational stability and continuity while reducing legal and operational risks that may affect investment activities or the continued operation of the establishment in the market. In light of the continuing development of the legislative framework governing the tourism sector, ongoing monitoring of legal and regulatory developments remains essential to ensure full compliance and sustain business operations on a sound legal basis.