Scheme to assist hoteliers with refurbishment launched
A scheme subsidising interest on loans for the refurbishment and extension of hotels and restaurants was launched by the Finance Ministry and the Tourism Secretariat this afternoon.
The €3 million scheme is spread over a 10-year-period.
In the case of refurbishments, applicants will get 1.5 percent on the loan interest, in the case of extensions one percent. In both cases the scheme covers an investment up to a maximum of €600,000.
Applications open in July but the preparatory work has to be done between now and then.
The scheme mainly targets three-star hotels but it is also open for hotels and restaurants in general, Finance Minister Tonio Fenech said.
Parliamentary Secretary Mario de Marco said this scheme was separate to the €10 million EU scheme launched earlier and the moratorium on bank loans which applied to investors who already had a loan.
The reason behind the subsidy was the economic crisis and the manner in which tourism had been affected.
Mr Fenech said the government was taking extraordinary steps because of the economic crisis. It was important to realise that opportunities came about if one recognised the need to take a step forward and not backwards in scuh circumstances, hence the importance of upgrading.
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Joseph Micallef
Apr 21st 2009, 22:06
I wonder why all this fuss in refurbishing while then hotels and restaurants find it so difficult to invest in decent entertainment ( except for the odd keyboardist usually playing mp3's)! Why they find it so difficult to pay for a trio or a quartette or a magician or a band or some other entertainer!
I Alamango
Apr 21st 2009, 20:49
A good start with this subsidy for 3* hotels! 3 star hotels are a must in these Islands!
When we notice an increase of people travelling with low fare airlines just ryanair, we have to invest in a low budget accomodation too to attract more and more tourists!!
There are too many 4 and 5 star hotels around!
Joseph Brincat
Apr 21st 2009, 20:40
What an ingenious scheme!
It's a pity it took the Minister so long to launch. Many 3 or five star hotels have been demolished to make way for apartments.
With this scheme they might have survived although I have my doubts. Could be also that they were not really up to standard, because if they were, they would have absorbed the extra high class tourists that were invading our islands on low cost airlines.