State support for small tourism companies boosted to €120M

Portugal’s government has boosted cash flow support for micro and small tourism companies by 20 million euros, and now has an allocation of 120 million euros, the Ministry of Economy said in a statement.

Thus, according to an order from the secretary of state for tourism, Rita Marques, of February 19, the Treasury Support Line for Micro and Small Tourism Businesses was boosted by 20 million euros, and now has a total budget allocation of 120 million euros, the statement said.

Also, an additional amount of 250 euros per company was set, to be added to the value of the performance bonus, for companies that join the Clean & Safe Seal and attend at least one of the respective training courses in 2021, the Ministry said.

The Ministry of Economy said that the changes also include a moratorium for the start of reimbursements, which will take place on June 30, 2022.

This line, managed by Turismo de Portugal and created as a mechanism to support the cash flow of tourism businesses in the context of the Covid-19 pandemic, has so far had 10,368 applications and approved funding of 92.8 million euros, the Ministry said.

With this line, micro and small companies in the sector can access financial support corresponding to 750 euros per job/month, for three months, up to a maximum of 20,000 euros in the case of micro-companies and 30,000 euros for small companies, and in both situations, 20% of those amounts may be converted into non-repayable funds, the government said.

On January 12, Turismo de Portugal said that it had launched a new line of support with an allocation of 300 million euros, after the previous day’s treasury support of 100 million euros had been published.

In a statement, Turismo de Portugal explained that the new support line is intended to support investment of tourism companies, particularly concerning the upgrading of the respective undertakings and establishments, to adapt and prepare the tourism offer, with a view to the sector’s recovery process.

In the same note, the entity noted that this instrument is aimed at all tourism businesses, and is focused on the development of sustainable and inclusive projects, reinforcing the intensity of aid, by increasing the non-refundable component that companies can access, as a performance bonus.

The support line has a partnership between Turismo de Portugal and 12 credit institutions (Abanca, Bankinter, BPI, BPG, CCAM, CGD, Eurobic, Millennium BCP, Montepio, Novo Banco, Novo Banco dos Açores and Santander), under which the funding to be provided is shared between the institute and one of those credit institutions, according to the note.