Support for tour operators or travel agents to overcome the economic impact of the COVID-19 pandemic

Support for tour operators or travel agents to overcome the economic impact of the COVID-19 pandemic

KGK Law Firm's team has many years of experience in the tourism industry. Many of our clients are active in the tourism industry, which makes us familiar with the needs of companies in this sector. As the development and competitiveness of each of our current and prospective clients is fundamental to the prosperity of their businesses, we regularly monitor for innovations and programs that will benefit them. We would therefore like to turn your attention to the opening of a new procedure to support SMEs in the tourism sector.

Which businesses does the programme cover and when does it start?

It is not yet known when the procedure aimed at tour operators or travel agents to address the economic impact of the COVID-19 pandemic will start. This question is also expected to be answered in the coming days. All the necessary documents and information have now been made available for potential applicants to familiarise themselves with and be prepared for when the programme opens for applications.

The procedure for supporting SMEs in the tourism sector is part of the Operational Programme "Innovation and Competitiveness" 2014-2020. This procedure will aim at providing operating capital for Bulgarian micro, small and medium-sized enterprises registered under the Tourism Act as a tour operator or travel agent to cope with the economic consequences of the COVID-19 pandemic. Covid-19.

What is the goal and does it overlap with your priorities?

The focus of this procedure is on tour operators and travel agents who offer tourist packages including the use of basic tourist services for inbound and outbound tourism in the territory of the country. If, as a tourism enterprise, you are facing serious difficulties due to the evolving global situation, the programme is highly suitable for you.

According to estimates by think tanks, revenue losses in the tourism sector have reached up to 85% by mid-2020, as SMEs in the tourism industry enter the sector of businesses that cannot afford to operate in a home office environment. In case you are an enterprise operating as a tour operator or travel agent, the team at KGK Law Firm is of the view that the Procedure is a very suitable option to deal with the effects of the global pandemic and to address the shortfall occurring as a result of COVID-19.

What is the amount of financial assistance?

The total amount of the grant under the Procedure is BGN 10 million. There is no minimum amount for the aid you have requested, but the maximum amount you can receive for your individual project is BGN 391 166. Therefore, the maximum amount of aid should not exceed 10% of the turnover realised by the applicant company in 2019.

Which candidates are eligible?

Applicants should be legal entities or sole traders registered under the Tourism Act as carrying out tour operator and/or travel agent activities. Our team will take care of compliance with additional criteria, but it is important to inform you that branches of legal entities cannot participate in the project selection procedure due to their lack of independent legal personality. It is also important to mention that applicants registered prior to 01.01.2019 and have carried out business activities in 2018 and 2019 are eligible.

Which activities can be funded and what are the eligible costs?

Eligible activities must ensure the achievement of the objectives of the Operational Programme Innovation and Competitiveness 2014-2020, must be activities necessary to address the funding gap or lack of liquidity resulting from the COVID-19 outbreak.

To be eligible under this procedure, expenditure must also meet certain criteria. They must be necessary for the implementation of the project, be incurred after 01.02.2020, be identifiable and verifiable, etc. All costs must be real and used to cover the current needs of your enterprise. Each aspect of the eligible costs and activities will be reviewed by our team for compliance with the criteria and methodology for evaluating project proposals given in the Terms of Reference.

How can you submit your project proposal?

Project proposals under the procedure are submitted entirely electronically by filling in the web-based application form and submitting the form and supporting documents. Submission is made via ISMS 2020 using only a Qualified Electronic Signature (QES). The required supporting documents shall also be submitted fully electronically in Bulgarian.

Contact KGK Law Firm

This article does not constitute legal advice.

KGK KGK Law Firm is focused on the success of your project proposal. For all your questions you can contact KGK Law Firmand we will be at your disposal throughout the application and project implementation. Specifically, the services we can assist you with include, but are not limited to: researching your eligibility as an applicant and preparing the necessary documents and opinions in this regard; estimating the maximum amount of assistance you may receive; verifying that your declared costs comply with their eligibility according to the criteria; submitting the electronic application to the ISUN 2020 web form; and any other legal issues that may arise in connection with your project proposal.