FINANCE

Tourism to get €420 mln boost

State offering cash subsidy to hotels coming to 5% of their annual turnover, up to €400,000

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Prime Minister Kyriakos Mitsotakis announced on Tuesday a liquidity grant of 420 million euros to all Greek tourism enterprises, after the European Commission confirmed its approval of state subsidies aimed at support pandemic-stricken sectors, in the context of the temporary framework to that effect.

Securing the cash, as well as European approval, was a joint effort by the ministries of Development and Tourism as well as by the Greek Tourism Confederation (SETE), the prime minister said.

The €420 million will be distributed as follows: Small and medium-sized enterprises will collect €350 million, larger ones will receive €50 million and another €20 million will go toward covering pressing needs regardless of the size of recipient enterprises.

The money will be channeled via the same platform already being used to provide support to the food service sector.

“This is working capital, a subsidy that will come up to €400,000 per tax registration number. It will concern the entire spectrum of tourism enterprises, meaning hotels, resorts, rented room units and camping sites, as well as travel agencies and touring coach services. It is primarily headed to SMEs,” Mitsotakis said at a meeting with tourism company representatives regarding the support to the sector.

The subsidy will amount to 5% of turnover for tourism accommodation companies and 2.5% for the rest of the sector, with a €400,000 ceiling. The money will be tax exempt and protected from confiscation. The submission of applications will take place through the ependyseis.gr website, the assessment will be immediate and the disbursement of the grant will come straight after the approval of each application.

“A month-and-a-half ago we were here for food service. Food service is now open and the program, the platform has been in operation since [May] 14,” said Development Minister Adonis Georgiadis. “We will do the same with tourism and the platform will open for tourism enterprises in the next few days.”