Norway to assist its tourism business with as much as 1 billion kroner of disaster funding

A broad and basic assist scheme for corporations hit by the coronavirus disaster is now being changed by a narrower and extra focused assist scheme.

The cash might be paid out in 2021.


“The outdated scheme applies to the enterprise group typically. The brand new one will apply to tourism and the industries associated to it,” Minister of Commerce and Business Iselin Nybø (V) advised information bureau NTB.

On Tuesday, the Norwegian authorities sat down with the events concerned to debate the “limits and delimitations” within the scheme, she added.

On Monday, Nybø and Minister of Districts Linda Hofstad Helleland (H) offered a brand new compensation scheme of as much as NOK 1 billion for tourism corporations.


The scheme might be primarily based on the laws for the overall assist scheme for the enterprise group, which was discontinued on September 1.

The outdated scheme initially had a finances of NOK 50 billion.

Thus far, NOK 6 billion has been paid out.


In place throughout October

The brand new scheme will apply from September to December of 2020.

The state will cowl a share of fastened and unavoidable bills in tourism corporations with a big drop in turnover.

The scheme is aimed toward business segments corresponding to accommodations, lodging, catering, and elements of the industries for passenger transport.


Nybø expects the scheme to be in place throughout October.

“Once we transfer from an automatic scheme administered by the Tax Administration to a extra refined scheme, there have to be handbook processing. The funds won’t happen till the start of 2021,” Nybø warned.

“Many at the moment are going through a really unsure autumn and winter. A whole lot of time will go earlier than the subsequent summer time vacation, and the enterprise group has postponed many seminars and kickoffs. The Christmas-related season can be unsure,” Nybø famous.


Unprofitable corporations

Critics concern that the federal government will maintain corporations that will go bankrupt in a standard state of affairs alive with such schemes.

“We’re involved that we are going to maintain alive corporations that ought to not keep energetic,” Nybø added.

Earlier this autumn, she introduced that the disaster within the tourism business “is the brand new regular,” and that Norway “should learn how to dwell with it.”


Kristin Krohn Devold at NHO Reiseliv emphasised that – so long as the pandemic lasts and elements of society stay closed – the business should obtain assist to outlive.

“Thankfully, the federal government has listened to (the) tourism (business), an important factor now’s to cowl the fastened prices, to maintain corporations and jobs alive till subsequent summer time,” she mentioned.

Nevertheless, the Enterprise Federation of Norway’s (Virke) supervisor Ivar Horneland Kristiansen fears the bundle will not be large enough.


“In line with our analyzes, tourism alone may have a fall in turnover of NOK 80-90 billion in 2020. Due to this fact, one billion won’t take us to the end line,” he mentioned.

New restructuring bundle

The federal government can be proposing a further NOK 250 million for restructuring, to be distributed by way of Innovation Norway.

To qualify for assist, corporations should show greater than a 30% drop in turnover within the final two months in contrast with the earlier yr.


The federal government additionally needs a subsidy scheme of NOK 200 million by way of which the municipalities that needed to implement additional native an infection measures resulting from main coronavirus outbreaks can compensate corporations which have been considerably affected.

“When the vaccines are in place and the borders open, Norway would be the primary nation for international vacationers, as a result of we managed to make use of the disaster to construct a extra dynamic tourism (business), Helleland identified.

© NTB Scanpix / #Norway Today



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