The government will provide a new compensation scheme for tourism of up to 1 billion crowns – E24

– We propose to establish a new compensation scheme of around NOK 1 billion for tourism companies that have had a big drop in turnover. Its purpose is to secure jobs, help viable companies adapt and prevent bankruptcy.

This is what Trade and Industry Minister Iselin Nybø of the Opera Roof in Oslo said Monday morning.

The scheme will apply from September to December 2020 and means that the state covers a part of the fixed and unavoidable expenses of tourism companies, according to the proposal.

– We will also propose an application-based grant scheme for small businesses, which may fall outside this scheme, of NOK 50 million, says the Minister of Commerce and Industry.

Nybø says industries dealing with accommodation, catering and outreach will be included, as well as parts of passenger transportation and experiences.

– I am incredibly relieved that the government has understood the problems facing tourism. We will continue to have bankruptcies and many are at risk of closing for a period, but the measures will help companies recover through the fall and winter, CEO Kristin Krohn Devold tells VG.

The minister emphasizes that the details of the new scheme will not be ready until the authorities have had a dialogue with the parties in working life.

– The first meeting with the parties in working life will be early tomorrow. But I can already say that it will not be a continuation of the compensation scheme that we have today. It will be a new scheme, but based on the general scheme that we have had.

VAT still low and a new package for municipalities

The government continues with a low VAT for the tourism industry of six percent.

– Cash support to cover part of operating expenses, which is the current scheme, has been NOK 1.2 billion since March. That we now have a billion kronor plan that will offset the old plan is very good. This is good news for our industry, says Devold.

In addition, the government proposes to expand the grant scheme for the restructuring of the tourism industry by NOK 250 million. To qualify for support, businesses must show a more than 30 percent drop in turnover in the last two months compared to the previous year.

District Minister Linda Hofstad Helleland was also present at the Opera Roof to discuss new government measures for municipalities.

In fact, the government will have its own NOK 200 million subsidy scheme where municipalities that have had to implement additional local infection control measures due to major outbreaks, can compensate companies that have been particularly affected.

– For example, Bergen, because in a confusing situation they have chosen to close and see that companies are greatly affected, says Helleland.

It is estimated that this year two thirds of the turnover will be lost

Virke hoped in advance that the package would contain measures that ensure aid and predictability for the industries that are hit the hardest, such as tourism, trade shows, events, culture and catering.

This industry expects to lose 2 out of 3 revenue crowns in 2020. It is very serious, says CEO Ivar Horneland Kristensen in Virke.

– After a bit of improvement this summer, the order books are almost empty for the fall. Our members in the tourism industry now estimate in September that their turnover for the full year 2020 will be below 33 percent of what it was in 2019, he says.

In the overview below, you can see how spending money on tourism has sunk like a stone under the crown. Despite a small storm this summer when the Norwegians went on vacation to Norway, the arrows are now going down again.