EUR 170 million provided for investments in tourism products through sustainable tourism loans
The financial instrument Sustainable Tourism Loans that will open for applications on 14th November was presented in the Ministry of Tourism and Sport. The goal of the instrument is to increase the competitvemess through investments in products of higher added value that will contribute to the development of sustainable tourism and the quality of tourist products and services. This new financing programme was presented by Tonči Glavina, Minister of Tourism and Sport, Šime Erlić, Minister of Regional Development and EU Funds and Hrvoje Čuvalo, President of the Management Board of the Croatian Bank for Reconstruction and Development.
„After having provided the highest amount of funds for the development of private entrepreneurship in tourism so far through the National Recovery and Resilience Plan, based on which today we co-finance 55 private projects worth in total almost EUR 390 million, and in the implementation of which the Ministry of Tourism and Sport participates through grants in an amount exceeding EUR 161 million, we continue this financing cycle with the Sustainable Tourism Loans. Thus, from today, we make available additional EUR 90 million in grants from the European budget to the private sector, and with additional funds from HBOR in the amount of almost EUR 80 million, the total amount of this programme will be EUR 170 million", said minister Tonči Glavina and added:
„Investments that will be supported include the construction, reconstruction, renovation and equipping of hospitality establishments for accommodation, as well as additional facilities that increase the attractiveness and diversity of offer, especially in the sectors such as health, cultural, enogastronomic, business, sports and recreational tourism, as well as ecological tourism", concluded Glavina.
This new programme, funded by the European Regional Development Fund and the Competitiveness and Cohesion Operational Programme, is designed to support financially sustainable investments and, with the possibility of writing off a part of the loan principal, willč provide entrepreneurs with more favourable terms and conditions and financing for projects that will contribute to the development of sustainable tourism. The credit line offers amounts from a minimum EUR 250,000 to a maximum of EUR 7 million, and part of the principal of up to a maximum of 50% of the principal amountcan be written off if the defined criteria are met. Eligible applicants under this programme are micro, small and medium-sized entrepreneurs operating in the tourism sector.
„In this financial period, we continue to provide strong support to development projects through financial instruments. Their total value exceeds EUR 1.2 billion, of which we have allocated EUR 170 million for the promotion of tourist offer, with special emphasis on less developed areas. I would also like to highlight the Urban Development Fund worth EUR 180 million, with which we have for the first time enabled local government units to invest in commercial projects, including those in the tourism sector, with the possibility of writing off up to 50 percent of the loan principal. With this financing model, we contribute to the development of commercial projects and encourage new investments throughout Croatia“, said the Minister of Regional Development and EU Funds Šime Erlić.
„I am very pleased that HBOR, in cooperation with the relevant ministries, participates in the implementation of this financial instrument that will significantly contribute to the development of sustainable tourism. It is important to emphasize that loan applications are received exclusively online, which further simplifies and accelerates the process for our entrepreneurs. This is another example of how we successfully combine EU funds and our own sources to provide support for development projects," said the President of Management Board of HBOR Hrvoje Čuvalo.
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This document has been prepared with the support of the European Union. The views expressed in the document do not reflect the official views of the European Union.
„After having provided the highest amount of funds for the development of private entrepreneurship in tourism so far through the National Recovery and Resilience Plan, based on which today we co-finance 55 private projects worth in total almost EUR 390 million, and in the implementation of which the Ministry of Tourism and Sport participates through grants in an amount exceeding EUR 161 million, we continue this financing cycle with the Sustainable Tourism Loans. Thus, from today, we make available additional EUR 90 million in grants from the European budget to the private sector, and with additional funds from HBOR in the amount of almost EUR 80 million, the total amount of this programme will be EUR 170 million", said minister Tonči Glavina and added:
„Investments that will be supported include the construction, reconstruction, renovation and equipping of hospitality establishments for accommodation, as well as additional facilities that increase the attractiveness and diversity of offer, especially in the sectors such as health, cultural, enogastronomic, business, sports and recreational tourism, as well as ecological tourism", concluded Glavina.
This new programme, funded by the European Regional Development Fund and the Competitiveness and Cohesion Operational Programme, is designed to support financially sustainable investments and, with the possibility of writing off a part of the loan principal, willč provide entrepreneurs with more favourable terms and conditions and financing for projects that will contribute to the development of sustainable tourism. The credit line offers amounts from a minimum EUR 250,000 to a maximum of EUR 7 million, and part of the principal of up to a maximum of 50% of the principal amountcan be written off if the defined criteria are met. Eligible applicants under this programme are micro, small and medium-sized entrepreneurs operating in the tourism sector.
„In this financial period, we continue to provide strong support to development projects through financial instruments. Their total value exceeds EUR 1.2 billion, of which we have allocated EUR 170 million for the promotion of tourist offer, with special emphasis on less developed areas. I would also like to highlight the Urban Development Fund worth EUR 180 million, with which we have for the first time enabled local government units to invest in commercial projects, including those in the tourism sector, with the possibility of writing off up to 50 percent of the loan principal. With this financing model, we contribute to the development of commercial projects and encourage new investments throughout Croatia“, said the Minister of Regional Development and EU Funds Šime Erlić.
„I am very pleased that HBOR, in cooperation with the relevant ministries, participates in the implementation of this financial instrument that will significantly contribute to the development of sustainable tourism. It is important to emphasize that loan applications are received exclusively online, which further simplifies and accelerates the process for our entrepreneurs. This is another example of how we successfully combine EU funds and our own sources to provide support for development projects," said the President of Management Board of HBOR Hrvoje Čuvalo.
This document has been prepared with the support of the European Union. The views expressed in the document do not reflect the official views of the European Union.