*by Nikolaos Kotsyfos, published in Fortune Greece


A large number of prospective investors are waiting for the program "Strengthening the Establishment and Operation of New Tourism Enterprises", totaling 150 million euros, which is included in the Planning of the Ministry's upcoming Invitations for the NSRF Programming Period 2021-2027.

The program in question supports investment projects up to €400,000, with the subsidy rate varying at 50% of the net value of the eligible costs.

Beneficiaries are investors who intend to proceed with the establishment of a new tourism business such as: Hotel (minimum 3 stars), Rental Apartments/ Rooms (minimum 4 keys and 12 beds), tourist furnished residences (3 residences or more), Camping, Youth hostels, etc. This program includes Tourist Offices, Travel Agencies, Car Rentals (rent a car), Alternative forms of tourism such as sports/sea tourism etc.

Subsidized costs include almost all necessary costs of fixed assets, equipment and services:

• Building Installations & environment configuration
• Machinery, Furniture, Facilities,
• Hotel and Other Equipment,
• Energy Saving Expenses,
• Certification of systems,
• Display/Promotion, Participation in Exhibitions,
• Design and Branding Services,
• Software – Website.

Also included are Engineering Expenses, Investment Plan Monitoring as well as Indirect Expenses, which essentially constitute an additional monetary bonus of 7% on the total investment budget.

Applications will be evaluated in order of priority, with one application per TIN and per Region. It is critical that a prospective investor is properly prepared and has taken action beforehand. For this reason, some points of attention are highlighted, so that one can be properly prepared for submitting an application as soon as the relevant announcement is published, according to the Investment Center.

Important Actions that an interested investor can take immediately:

• Issuance of land use by the competent urban planning agency. It will be requested as a necessary supporting document, while at the same time ensuring that the specific business activity can actually take place in the specific area.
• Existence of Funds in the investor's personal bank accounts. In this way, the participation itself is proven, which usually must be at least 25% of the total budget of the project.
• Existence of property to determine the place of implementation of the investment. Property ownership information may be requested when submitting the application.

Actions to ensure faster and more efficient processing:

• Preparation with an accountant for the type of business to be established (after approval).
• Preparation with an engineer for the basic architectural plans. The existence of permits, pre-approvals may help with the score.
• Full recording of all necessary expenses, with a detailed cost budget of the investment plan.
• Contacts with banking institutions for the possibility of lending (intention to issue a loan).

Finally, it is recommended that prospective investors take into account the implementation schedule of a subsidized investment, which is usually 2 years. Within this period the investment must be made, while the payment of the grant requires the existence of paid invoices. A subsidized project can be paid either once, (when all requested paid costs are collected), or in installments (in 2 or 3 phases).

The above tips are indicative and relate to the expected program "Strengthening the Establishment and Operation of New Tourism Enterprises". They are based on previous Announcements of respective Programs, as well as on the trend of recent Programs that have been announced in the NSRF Program Period 2021-2027.

The Ministry's announcement also includes the program "Strengthening the Establishment and Operation of New Small and Medium Enterprises" for a total amount of 200 million euros. The establishment of a new small and medium-sized business is subsidized for all other business activities - except tourism.

*Nikolaos Kotsyfos is an Economist

Business Administration, University of Piraeus

MSc Marketing, Athens University of Economics and Business

Source: Program for up to 400,000 euros per new tourism business through NSRF | fortunegreece.com