Plan for 120 million euros to support small and medium tourism enterprises

Electronic submission of applications for the financing of investment projects to support new micro and small tourism enterprises under the new programme entitled “Strengthening the establishment and operation of new tourism small and medium-sized enterprises” is expected to begin in December.

Deputy Minister of Economy and Development Alexis Charitsis has signed the ministerial decision and drawn up a detailed guide for the implementation of the new action, while the announcement of the programme is expected within the week.

The main objective of the action is to strengthen the implementation of investment plans for the creation of a new tourist business by SMEs in specific areas of tourist activity and alternative forms of tourism (sports, maritime tourism and rural tourism). The action aims at creating tourist units and developing activities that will offer high-quality products and services, maximizing the contribution of tourism to the country’s economic aggregates and employment rates.

As Charitsis told the ANA: “With the new programme, we strongly support our country’s “heavy” industry – tourism, which in recent years has seen rapid growth, contributing significantly to reversing the economic climate and 120 million euros will be earmarked for the establishment of new tourism enterprises but also for the completion of units that have remained incomplete due to a lack of funding. Our goal is to develop quality tourism and create new quality jobs. Therefore, a precondition for joining the programme is to maintain the unit for at least five years, while providing additional support for businesses that will create new jobs. With a plan and hard work, we ensure substantial liquidity for the economy and support businesses that move to new qualitative investments that increase the country’s productive potential.”

According to the detailed plan, the programme budget amounts to 120 million euros while the subsidised budget for each investment will range from 25,000 euros to 400,000 euros. Each tourist investment plan may be higher than 400,000 euros, but the additional amount will not be subsidised, but should be covered by either equity or borrowing.

Investment projects with a budget of less than 25,000 euros will not be eligible. The amount of the state subsidy per investment is set at 45 pct (55 pct private participation), and this rate may even reach 50 pct if the investment plan provides for the creation of new permanent jobs.