There Are Still No Applications for the State Program for Financing Rural Tourism

The Ministry of the Sea, Tourism, Transport and Development expects that the first applications for the new rural tourism financing program will soon be submitted, estimating that at least a dozen applications could be submitted in the first year of the program’s implementation.

Over time and with the experience of the first applicants, the number of applications is expected to grow rapidly, according to the Ministry. The credit program "Development of Tourism in Rural Areas" was launched a month and a half ago, and so far, it has been learned, there are still no concrete applications.

In response to the inquiry about this, the Ministry states that there was also weak initial interest in the program "Incentive for Success," which was launched five years ago to finance the development of small family businesses in tourism. As time went on, interest from entrepreneurs and the number of applications increased, resulting in 350 new small family hotels built and renovated with funds from that program in the Croatian market five years later, they say in the Ministry, where they expect a similar outcome with the rural tourism financing program.

In addition to the Ministry, 16 banks are involved in the rural tourism financing program, where technical preparations are underway to accept applications under this specific program. The Ministry emphasizes that, according to their knowledge, there is interest in these loans, and potential users are inquiring about the possibilities and conditions. Among potential users, they also consider the currently registered 335 rural households in Croatia.

The program "Development of Tourism in Rural Areas" was launched by the Ministry at the beginning of July this year in cooperation with the business sector and the Croatian Bank for Reconstruction and Development (HBOR) and the Croatian Agency for Small Business (HAMAG). The goal of the program is, in addition to promoting the development of tourism offerings as a supplementary activity on agricultural farms, to revitalize and improve the quality of life in Croatian rural areas. The program is based on bank loans ranging from 10,000 to a maximum of 200,000 euros, with an interest rate of only 2 percent for users, as the Ministry subsidizes the total interest of 8 percent by 6 percent. The repayment period is up to 15 years with a grace period of up to 2 years. The period during which these loans can be requested is one year, or until the summer of next year, with the possibility of extension. (Hina)