Strengthening the Establishment and Operation of New Tourism Small and Medium Enterprises

The programme

The Action Strengthening the Establishment and Operation of New Tourism Small and Medium Enterprises concerns support for entrepreneurship in the Tourism sector, through the creation of new micro, small and medium-sized tourism enterprises in selected activity KAD codes.

Investment plans that concern the completion of accommodation whose construction has started and is at an advanced stage, but which has not been completed and is not operating because of difficulties due to the economic crisis, will also be eligible.

Emphasis will be placed on creating units that offer high-quality products and services and at the same time help diversify the country's tourism product.

Who it concerns

Under the Action Strengthening the Establishment and Operation of New Tourism Small and Medium Enterprises, support is given to Micro, Small and Medium-Sized Enterprises that will operate in the Tourism sector and will hold an eligible investment KAD code up to and including the first disbursement of the grant. The enterprises to be established must operate exclusively under one of the following forms: enterprises of a corporate/commercial nature [A.E., E.P.E., O.E. or E.E., I.K.E., sole proprietorship, Social Cooperative Enterprise of Law 4019/2011, cooperatives, Shipping Company of Pleasure Boats (N.E.P.A.)].

More specifically:

A. Enterprises that will be established from the date the call of the Action is issued and will hold the KAD code of the investment before the first disbursement of the grant.

B. Enterprises (Tourist Accommodation) that have been established and for which, up to the date the call of the Action is issued, all of the following apply:

• They have acquired at least one of the eligible KAD codes 55 and/or the KAD codes: 41.20.20.01 or 41.20.20.02
• The enterprise's tax identification number (AFM) has had no economic activity since it was set up (zero turnover)
• No operating licence (sign) for the tourist accommodation has been notified or issued
• They hold a building permit for the specific tourist accommodation

1. Main Hotel Accommodation

• Hotels of category 3*** (three stars) and above, with a capacity of 10 to 50 beds (Note: a capacity above 50 beds is not a reason for exclusion/rejection of the proposal. The part of the investment plan that concerns capacity above 50 beds will be funded with own funds)
• Hotel tourist accommodation within traditional buildings provided for in Presidential Decree 33/1979)
• Organised tourist campsites (Camping) of category 3*** (three stars) and above
• Hostels for young people

2. Non-Main Hotel Accommodation

• Self-catering accommodation – tourist furnished residences provided that the minimum number of residences is three
• Furnished rooms – apartments for rent of category 3 keys and above, with the restriction that their minimum capacity is 10 beds

3. Alternative Forms of Tourism:

• Sports Tourism
a) at sea (e.g. recreational diving, golf courses, mini golf, water skiing, parasailing, windsurfing, sailing, kitesurfing, swimming and other water sports)
b) on lakes – rivers (e.g. canoe kayak, rafting etc.)
c) in mountainous, semi-mountainous, lowland and/or urban and semi-urban areas (e.g. mountaineering, climbing, mountain bike trails, hang gliding - paragliding, crossing gorges and forests, wildlife tourism, city cycling, horse riding etc.).

• Maritime tourism
Apart from many of the above sports tourism activities at sea, such as water skiing, this special form of tourism includes recreational activities linked to sea tours (cruises on cruise ships or other professional pleasure boats).

• Countryside Tourism
a) nature tourism that develops in the areas characterised as "natural", so that tourists can learn about nature,
b) nature observation and interpretation tourism (e.g. observatories, visitor information centres and mountain refuges),
c) walking tourism that develops on the walking trails of the countryside,
d) touring tourism, when the tour or excursion takes place in the countryside. This form is also linked to the sports tourism that develops on lakes – rivers and in mountainous, semi-mountainous, lowland and semi-urban areas mentioned above

• Other special – alternative forms of tourism
Recreational and theme parks, e.g. adventure parks, miniature parks etc.

4. Tourist offices

• Tourist offices within the meaning of Article 1 of Law 393/1976 (A' 199)
• Car rental offices for the full lease of private-use cars
• Rental businesses of motorcycles and three-wheel and four-wheel vehicles over 50 cc
• Tourist Road Transport Enterprises (T.E.O.M.) that own, possess or hold one or more special tourist coaches of Law 711/1977.
• Charter brokerage offices that undertake the chartering of professional pleasure vessels

Place of implementation of the Action

The Action concerns investments that will be made throughout Greek territory.

Program budget

The indicative budget of the Action Strengthening the Establishment and Operation of Tourism Small and Medium Enterprises amounts to €400,000,000 (public expenditure).

Eligible total budget of the investment plans: €25,000 – €400,000

If the investment plan has a budget below €25,000.00, it will be considered non-eligible from the outset and cannot be submitted.

If the investment plan has a budget above €400,000.00, the amount beyond the Public Funding needed to cover the total budget will be considered private contribution for the implementation of the plan. In that case, although the excess expenses are not subsidised, the whole investment plan, including the excess cost, is subject to evaluation and monitoring – control.

Amount of subsidy

The subsidy rate is set at 45%, but it can be raised to 50% if the investment plan provides for the hiring of new staff for at least 0.2 AWU of salaried employment (this will be checked one year after the investment is implemented).

Expenses subsidized

1. Buildings, other installations and surrounding area (up to 80%)

All kinds of works, with or without materials, on buildings and other installations are eligible, as well as all kinds of works to landscape the surrounding area of the aided enterprise, under the following terms:

• The required building permit under the Building Regulation in force must be secured and provided for the works carried out. It is noted that the permits required for the expenses of this category of the Investment Plan must have been issued within the first 12 months from the date of inclusion

• There must be ownership, or a concession of use, or a lease, or a lawfully established usufruct over the property for a period of at least six (6) years. The six-year period is calculated from the date the inclusion decision for the investment is issued. The ownership, lease, usufruct or concession of use must be shown with the 1st certification request and before the public grant is paid. Especially for the construction of a building, the lease must be for at least twelve (12) years from the date the inclusion decision for the investment is issued

• Not eligible in this category are expenses for decoration studies and other similar studies, unless it is found during implementation and up to the completion of the investment that they were actually applied

• Not eligible are employer contributions for construction works and expenses that concern duties, taxes and fees

2. Machinery – Equipment - Installations & Equipment for Environmental Protection and for Saving Energy and Water (up to 100%)

2.1 Machinery – Equipment

Expenses for the supply, transport, installation and operation of new machinery and other equipment necessary for the operation of the enterprise and for ensuring the services provided are eligible, under the following terms:

• The equipment supplied must be new, unused and owned by the enterprise.

• Not eligible are expenses that concern duties, taxes, fees, customs broker's fees and customs clearance costs.

• The expense of leasing equipment is considered an eligible expense only when the lessor may conclude leasing contracts under the provisions of Law 1665/1986 (Government Gazette 194 A'), as in force, and in any case in accordance with Article 19 of the Decision of the Minister of Economy, Infrastructure, Shipping and Tourism 81986/EYTHY712/31.7.2015 "National rules on the eligibility of expenses for the programmes of ESPA 2014-2020 – Legality checks of public contracts of co-financed operations of ESPA 2014-2020 by Managing Authorities and Intermediate Bodies – Procedure for Objections to the results of the evaluation of operations" (Government Gazette 1822/B/24.08.2015), as in force.

• The supply of equipment that is necessary for the activity of the enterprise is eligible and falls under Expense Category 2 (e.g. supply of cars, sea craft and bicycles of all kinds intended for rental, special equipment serving alternative tourism activities, e.g. canoe kayak, windsurf board, climbing equipment, jet-ski, aqua scooter).

2.2 Equipment and installations for Environmental protection and for saving Energy and Water

All kinds of actions and expenses linked to saving energy and water and to protecting the environment are eligible, under the following terms:

• Where the expenses concern building works with or without materials, the terms of Category (1) above apply.

• Where the expenses concern equipment, the terms of Category (2.1) above apply.

• As regards the production of electricity from a RES installation, the following are required:
– the appropriate licences, where required, must be secured both for the implementation and for the operation of the RES installation.
– the electric power produced by the RES installation must demonstrably serve the needs of the enterprise.
– the electric power produced by the RES installation may not exceed the sum of the enterprise's electricity consumption.
– the electric power produced by the RES installation brings no financial benefit.

3. Certification of quality assurance and environmental management systems (up to €3,000.00 per certificate, including the preliminary expenses of certification, and up to €12,000.00)

Expenses for the preparation for certification and for obtaining the corresponding certificates are eligible, on condition that the certificate has been issued by an accredited or other competent body by the date the project is completed, or that it is shown that the conditions for issuing it are met.

4. Publicity – Promotion – Participation in Trade Fairs (up to €15,000)

All kinds of actions and expenses that aim to publicise the enterprise and promote its service/tourism product are eligible, under the following terms:

• Participation in trade fairs is allowed only as an exhibitor. The participation must concern either the promotion of the enterprise's existing tourism services/products in new markets or the promotion of new tourism services/products in markets where the exhibiting enterprise is already present.

• In the case of participation in Trade Fairs held in Greece, the total eligible cost (participation cost, accommodation, travel, transport of materials etc.) will not exceed 3,000/fair.

• In the case of participation in Trade Fairs held Abroad, the total eligible cost (participation cost, accommodation, travel, transport of materials etc.) will not exceed 6,000/fair.

• Not eligible expenses are advertisements on television, radio and in newspapers.

• The cost of creating a website will not exceed 2,500 euros. The website must serve access for persons with disabilities in accordance with the international standards in force.

5. Expenses for technical studies by an Engineer and for the services of a Tax and Legal Adviser (up to €40,000)

The eligible expenses are as set out below:

• Start-up expenses for establishing the tourism enterprises (e.g. costs of drawing up and publishing the articles of association, fees for legal services and tax advice incurred up to the start of operation). These expenses may not be the subject of a continuous or periodic activity, nor be linked to the usual operating expenses of the enterprise, such as regular tax and legal advice services.
• Fees for preparing engineers' technical studies, such as an architectural study, a structural study, a study of electromechanical installations, and supervision fees

6. Software and Software Services (up to €10,000)

All kinds of actions and expenses that concern the supply of software and its configuration are eligible, under the following terms:
• The software supplied must be new and the enterprise must be the lawful holder of its licence.

• The provision of support services is eligible for up to one year from the time of supply.

• The cost of configuring Software/Applications and of training in their use is eligible as an expense up to 20% of the purchase cost of the software/application.

• Services for the supply/use of Software under a "Software as a Service", "cloud computing" or other similar scheme are eligible.

• Where application software addressed to customers is purchased, care must be taken so that access for persons with disabilities is served in accordance with the international standard(s) in force.

7. Means of transport (up to €25,000)

Supply of self-propelled means of transport under the following restrictions:

1. The means of transport must be new, unused and owned by the enterprise.

2. The means of transport must be:
-either for professional use
-or for mixed/multiple use, with up to nine (9) seats, and be used for transporting customers without a fare and/or equipment/materials.

3. The expense of leasing means of transport is considered an eligible expense only when the lessor may conclude leasing contracts under the provisions of Law 1665/1986 (Government Gazette 194 A'), as in force, and in any case in accordance with Article 19 of the Decision of the Minister of Economy, Infrastructure, Shipping and Tourism 81986/EYTHY712/31.7.2015 "National rules on the eligibility of expenses for the programmes of ESPA 2014-2020 – Legality checks of public contracts of co-financed operations of ESPA 2014-2020 by Managing Authorities and Intermediate Bodies – Procedure for Objections to the results of the evaluation of operations" (Government Gazette 1822/B/24.08.2015), as in force.

8. Preparation and Monitoring of the implementation of the Investment Plan (up to €4,000)

Expenses for services of preparing, monitoring and managing the implementation of the investment plan are eligible under the following terms:

• They must concern the period from the call of the Action until the completion of the investment.
• The cost of preparing the funding application may not exceed 1,000 euros.
• Any accommodation, travel and other trip expenses of the consultants are included in their total fee and are not eligible as separate expenses.

Start date for the eligibility of expenses: Date of publication of the Call of the Action "Strengthening the Establishment and Operation of New Tourism Small and Medium Enterprises" (7/11/2017)

Possible payments of the grant through:

A. Escrow Account: The special bank account in the form of an "Open Escrow Account" may be used so that the corresponding grant for expenses already incurred, invoiced and certified is paid directly to the beneficiary's providers/suppliers, to ease the enterprise's liquidity.

B. Optional Advance Payment: An advance payment of up to 40% of the public funding may be granted, provided the beneficiary submits an advance-payment letter of guarantee of equal amount from a recognised institution.

Important dates

• Date of publication of the Call of the Action: 7 November 2017

• Period for submitting the investment plans: from 18/12/2017 to 15/05/2018 at 17:00

Start date for the eligibility of expenses: Date of publication of the Call of the Action (7/11/2017)

Duration of Implementation of the Investment Plan
The deadline for completing the funded investments may not exceed forty-two (42) months and one hundred and thirty-two (132) days in total from the date the Inclusion Decision is issued. If a deadline set as above ends on a non-working day, it is extended to the first working day.

By way of exception, specifically and only for investment projects whose inclusion decision in the Action was issued after 11-06-2020, the deadline for completing them may not exceed forty-two (42) months from the date the Inclusion Decision is issued.

Where, on the basis of the implementation periods set above, the planned completion dates of the physical and financial scope are later than 31-12-2023, the final completion date is set at 31-12-2023.

Pre-scoring

Pre-scoring

Useful files

1. Call for the submission of funding applications for investment plans in the Action (in Greek)
2. Third (3rd) Amendment of the Call for the submission of funding applications for investment plans in the Action (in Greek)
3. Fourth (4th) Amendment of the Call for the submission of funding applications for investment plans in the Action – Budget increase (in Greek)
4. Fifth (5th) Amendment of the Call for the submission of funding applications for investment plans in the Action – Budget increase (in Greek)
5. Sixth (6th) Amendment of the Call for the submission of funding applications for investment plans in the Action – Budget increase from the Regional Operational Programmes (in Greek)

Decisions on the Inclusion of Operations

1. Inclusion Decision for State Aid Operations (in Greek)
2. Amendment of the Inclusion Decision for State Aid Operations – EPAnEK (in Greek)
3. Inclusion Decision – Regional Operational Programme "Western Greece" (in Greek)
4. Inclusion Decision – Regional Operational Programme "Crete" (in Greek)
5. Inclusion Decision – Regional Operational Programme "Central Macedonia" (in Greek)
6. Inclusion Decision – Regional Operational Programme "Peloponnese" (in Greek)
7. Inclusion Decision – Regional Operational Programme "Thessaly" (in Greek)
8. Inclusion Decision – Regional Operational Programme "Central Greece" (in Greek)
9. Inclusion Decision – Operational Programme "Attica 2014-2020" (in Greek)
10. Inclusion Decision – Operational Programme "South Aegean" (in Greek)
11. Inclusion Decision – Regional Operational Programme "Ionian Islands 2014-2020" (in Greek)
12. Inclusion Decision – Regional Operational Programme "North Aegean 2014-2020" (in Greek)
13. Inclusion Decision – Regional Operational Programme "Eastern Macedonia & Thrace" (in Greek)
14. 2nd Amendment of the Inclusion Decision for State Aid Operations – EPAnEK (in Greek)
15. 3rd Amendment of the Inclusion Decision for State Aid Operations – EPAnEK (in Greek)

Frequently Asked Questions & Answers on the Action (in Greek)
Frequently Asked Questions & Answers on the implementation of the Action (in Greek)

Final ranking list by score – Strengthening the Establishment and Operation of New Tourism SMEs (in Greek)