Government starts implementing tourism industry support programme

Due to negative trends in the tourism industry caused by the COVID-19 pandemic, the Government of Montenegro has started the implementation of the programme called Interest Subsidy on Rescheduling of Existing Loans with Investment Development Fund (IRF) and Commercial Banks. This programme enables interested individuals, companies and entrepreneurs registered to perform tourism and hospitality activities to exercise the right to interest subsidy during the grace period, provided during the rescheduling of existing special-purpose tourism and hospitality loans.

The Ministry of Economic Development, which implements this programme, has formed a commission for the implementation of activities related to the Public call, which has analyzed nearly 200 requests. The payment of the total amount of interest subsidy during the grace period was approved for slightly more than 100 users, while for about 20 of them the payment of a part of the interest subsidy was approved. Thus, subsidies will be provided for more than 120 companies, entrepreneurs and individuals.

The implementation of this measure, in the total amount of EUR 7 million, will significantly affect the increase of liquidity of the tourism industry, and significantly facilitate the preparation of the upcoming tourist season, said Minister of economic Development Jakov Milatović.

It is important to note that the subsidy beneficiaries have almost 3,500 employees, so this type of support will have multiple impact.

We remind that in the coming period, the payment of subsidies to tour operators in the amount of EUR 150,000 is expected, which is conceived as marketing support in order to better promote tourist arrangements. The implementation of a tourism voucher programme, in the amount of EUR 5.5 million, is also expected soon.

Within the package of economic support for the first quarter, the tourism and hospitality industry were granted support by subsidizing 100% of the minimum gross salary, compared to the previous 70%. Furthermore, it is possible to postpone and reschedule the payment of taxes and contributions paid by employee incurred in the second half of 2020. Also, there is strong support for new employment, one-off support for the establishment of an electronic fiscalization system, increasing the turnover limit from EUR 18,000 to EUR 30,000 as a condition for mandatory VAT registration, reducing the cost of renting state-owned space and postponing obligations on the same basis, as well as shortening of the maximum VAT refund deadlines.

Through the implementation of these measures, the Government of Montenegro will provide the Montenegrin tourism industry with another form of assistance and significant funds, confirming the Government's strategic commitment to consolidation and progress of the entire economy, with special focus on the tourism sector, which was particularly affected in the previous period.