Algeria Unveils New Land Parcels to Boost Tourism Investment
Image: El Mawkie
Takeaway
The Algerian government's push to expand tourism infrastructure and attract investment creates opportunities for international hotel chains, construction firms, and tourism-related technology providers. Investors should closely monitor the AAPI's announcements regarding land allocations and incentives, focusing on regions with high tourism potential like the Mediterranean coast and UNESCO World Heritage sites. Companies specializing in sustainable tourism and cultural heritage preservation could find a niche market in Algeria.
The Algerian government is intensifying its efforts to attract investment in the tourism sector by offering new land parcels across several wilayas (provinces). Omar Rekkache, the Director-General of the Algerian Agency for Investment Promotion (AAPI), announced the completion of preparations for the allocation of these land plots, specifically designated for tourism investment, during an informational event held in Mostaganem. The event highlighted the role of Algerian television in promoting Algeria as a premier tourist destination. In a field visit to Mostaganem, Rekkache also supervised the granting of concession contracts for economic properties and building permits for investment projects. One such contract involved a 1.5-hectare (~3.7 acres) economic property in the industrial zone of Bordjia awarded to the "Derouiche Djazairi Mohamed Ouadah" establishment.
The new legal framework for investment has spurred significant dynamism in Algeria's tourism sector, with 280 new investment projects registered since November 2022. This surge reflects a gradual shift in investor focus towards tourism, recognizing its potential as a promising sector. In December 2025, the Algerian government allocated DZD 16 billion (~$118.5 million) for infrastructure development in tourism expansion zones, aiming to diversify the economy and reduce dependence on energy exports. This allocation is part of a broader national tourism development strategy with a goal of attracting 11 million tourists and providing 300,000 beds by 2030.
Algeria boasts a 1,200 km Mediterranean coastline and diverse attractions, including seven UNESCO World Heritage sites. The country has 174 Zones of Tourist Expansion (ZET) identified for tourism investment. The Ministry of Tourism projects that tourist flow will increase to 3.1 million visitors by 2015, with cumulative revenues exceeding $6 billion. Algeria's tourism sector had been neglected for many years, but its rich natural resources and historical sites provide a strong impetus and competitive advantage.
Increased investment in Algeria's tourism sector is expected to benefit both local and international businesses. Construction companies, hotel chains, and service providers stand to gain from the development of new tourist facilities. The growth in tourism could also stimulate demand for local agricultural products and handicrafts, boosting the incomes of farmers and artisans. International airlines and tour operators could see increased business as Algeria becomes a more attractive destination.
In the coming months, further announcements regarding the allocation of land parcels in other wilayas are anticipated. The success of these initiatives will depend on streamlining bureaucratic processes and ensuring transparency in the allocation of resources. Key indicators to watch include the number of new hotels and resorts breaking ground, the occupancy rates of existing facilities, and the growth in international tourist arrivals. The government is also expected to release updated tourism development plans, outlining specific projects and investment incentives for the next five years.