Subsidised bank loans for hotel refurbishment

A scheme offering subsidised bank loans to hotels was launched yesterday by Tourism Minister Michael Refalo.

The scheme is open to any category having not more than 100 bedrooms and the loans are for refurbishment and upgrading.

Dr Refalo said the scheme, worked out in collaboration between the tourism and finance ministries, was in keeping with the government`s policy to encourage owners to upgrade establishments.

There are about 150 establishments, ranging from five-star properties to guest houses and hostels, which are eligible to take out loans under the scheme.

The government is subsidising two percentage points of the interest rate agreed to by leading banks, and owners or operators of licensed properties.

They can borrow a maximum of Lm150,000 for refurbishment projects, and a maximum of Lm250,000 for the addition of facilities and minimal extensions, as well as refurbishment.

The tourism ministry will be monitoring the progress of the projects undertaken to ensure that owners and operators comply with the conditions.