Covid-19, EU – Baltic States, Investments, Latvia, Legislation, Tourism
International Internet Magazine. Baltic States news & analytics
Wednesday, 09.10.2024, 02:59
EU Commission approves Latvia's support mechanism for hotels
On November 3 this year, the Cabinet of Ministers endorsed the Economics Ministry's proposal to earmark EUR 4,746,290 for covering various costs incurred by crisis-hit hotels, including employees' wages, utility bills and various other expenses.
The support measures have been included in the government regulations for the provision of support to Covid-19-affected businesses in the tourism industry.
It is expected that the support could be provided to around 200 hotels across Latvia, which means that the average amount would be EUR 23,731 per applicant. The financial support will be available to hotels until June 2021.
The support program needed approval from the European Commission which has concluded that the planned support is compatible with the European Union' (EU) single market rules.
The Latvian Investment and Development Agency will start accepting applications for the support money this month.
Under the regulation approved by the government, the hotels would receive EUR 4 per square meter in support to cover their operating costs.
The support money will be made available also to tourist enterprises established after June 2019, which until now did not qualify for government support.
The EUR 4,746,290 financing has been provided from the support program that was originally created to cover repatriation costs of tour operators and the unused money from the support instrument introduced by the Latvian Investment and Development Agency for tourism companies hit by the Covid-19 pandemic.
Economics Minister Janis Vitenbergs (KPV LV) said earlier that as Latvia fights against the Covid-19 pandemic and more restrictions are being introduced, government support to businesses becomes increasingly essential.
"The government's decision will help some of the tourist industry companies, which are currently on the verge of bankruptcy, to deal with the situation. The sector is practically paralyzed - international passenger traffic is halted, as a result of which there are only few foreign guests in Latvia, and this has a direct and extremely negative impact on the hotels' operations. The risk of insolvency in the hotel sector has become high," the minister said.
- 28.01.2022 BONO aims at a billion!
- 26.08.2021 LLC Dizozols Investments finalizes investment attraction deal with Crowdestor with record-high profits
- 25.01.2021 Как банкиры 90-х делили «золотую милю» в Юрмале
- 30.12.2020 Накануне 25-летия Балтийский курс/The Baltic Course уходит с рынка деловых СМИ
- 30.12.2020 On the verge of its 25th anniversary, The Baltic Course leaves business media market
- 30.12.2020 Business Education Plus предлагает анонсы бизнес-обучений в январе-феврале 2021 года
- 30.12.2020 Hotels showing strong interest in providing self-isolation service
- 30.12.2020 EU to buy additional 100 mln doses of coronavirus vaccine
- 30.12.2020 ЕС закупит 100 млн. дополнительных доз вакцины Biontech и Pfizer
- 29.12.2020 В Rietumu и в этот раз создали особые праздничные открытки и календари 2021