The government compensates cost of building hotels
Tashkent, Uzbekistan (UzDaily.com) -- The Government of Uzbekistan will provide small businesses with compensation to cover interest expenses on loans from commercial banks allocated to finance projects for the creation and reconstruction of tourist infrastructure facilities, hotels and sanitary facilities.
This is envisaged by the resolution of the President of Uzbekistan “On measures to accelerate the development of the tourism industry.”
Compensation will be provided at the expense of the State Fund for Supporting Development of Business Activities under the Cabinet of Ministers.
According to the resolution, by the end of 2021, 2 394 hotels with 50,040 rooms of different comfort will operate in the country.
- In particular, mechanisms have been introduced according to which:
- the land plot allocated for construction of a hotel after its completion can be sold to the investor on the ownership right, with the exception of the territory and protected zone of tangible cultural heritage objects, as well as agricultural land plots;
- part of the investor’s costs for the construction and equipping of the new hotel is compensated for by the State budget, provided it is put into operation and the hotel category is confirmed before January 1, 2022:
- with a room fund of at least 50 rooms for the category of 3 stars;
- at least 100 rooms for 4 star category.
At the same time, the amount of financing from the State budget of the part of the costs of investors, until an additional amount of 50 thousand numbers is reached, with their annual indexation in the process of approving the parameters of the State budget for the next year, is:
- 40 million soums for each hotel room with a category of 3 stars;
- 65 million soums for each hotel room with a category of 4 stars.
Also, royalty organizations - residents of Uzbekistan on the use of well-known and prestigious global hotel brands (according to the ratings of the top 50 hotel brands) for three years after the entry into force of franchise contract is partially funded by the State budget in the following amounts:
- the first 50 hotels with a category of 3 stars - annually in the equivalent of US$200 per room for each hotel;
- The first 30 hotels with a 4-star category are annually equivalent to US$400 per room for each hotel.
At the same time, the total amount of financing of royalties of organizations amounts to no more than US$10 million equivalent.