Subsidy scheme for hotels, restaurants, accommodation refurbishment plans
Malta Enterprise has launched an interest rate subsidy scheme for tourism establishments which aims to support hotels, restaurants and holiday accommodation providers offer new and improved services and to enhance their competitiveness.
The objectives of this incentive are to encourage holiday accommodation providers and restaurateurs to improve their product through upgrades and extension works; to support hotels and restaurants address the requirements of a wider client base on the strength of a diversification of products and services offered; and to increase the competitiveness of the tourism sector by increasing the number of satisfied visitors through the provision of value added hospitality services.
This incentive is open to businesses engaged in the operation of hotels, restaurants and holiday farmhouses.
Applicants must be operators of property licenced as hotels, guesthouses, hostels, farmhouses, snack bars and restaurants by the Malta Tourism Authority.
The incentive consists of an interest rate subsidy of between one and three per cent granted on interest payable to a bank during the first five years of a loan.
The maximum subsidy is calculated on a straight line reducing balance of the eligible loan amount over a period of five years.
Businesses which invest in a property licensed by the MTA as a hotel, guest house or hostel may qualify for an interest rate subsidy on a loan of a maximum value of €7 million. Businesses which invest in a property licensed by the MTA as a farmhouse, snack bar or restaurant may qualify for an interest rate subsidy on a loan of a maximum value of €500,000.
All project costs must be incurred and paid for between the date of project approval and December 31, 2014, and the loan on which the interest rate subsidy is granted must be used only to fund tangible assets acquired in the implementation of a planned investment project which should provide additional services and or fundamental changes in the business process.
Eligible costs must fit in the refurbishing and upgrading of premises including extensions, modifications and extensions to premises and the acquisition of plant, machinery, apparatus and instruments. Information is available from Malta Enterprise on 144 or at [email protected].