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Factsheet for measure CZ-2020-37/1260 Updated – measures in Czechia

COVID-Accommodation services subsidies

COVID-Ubytování

Country Czechia , applies nationwide
Time period Temporary, 07 September 2020 – 30 October 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound
Measure added 07 October 2020 (updated 12 August 2021)

Background information

COVID-Accommodation programme is designed to help providers of accommodation survive the difficult situation, following after most of the accommodation facilities were compulsorily closed as a result of government anti-pandemic measures. The final goal of the project is to maintain the scope and quality of the provided services. Among recipients of this state support are hotels and similar businesses providing accommodation, except of those which run under the Airbnb and similar platforms.

Providers of accommodation are supported by amount of CZK 100-330 (€3.7-12, based on the quality of accommodation - hotel, camps, hostels etc.) for every room and every night from 14 March 2020 to 24 May 2020 when these business had to be closed. The total amount of the programme is CZK 3,310,384,320 (€122,470,748).

Content of measure

The recipient of this subsidy must not:

  • be in bankruptcy, liquidation or insolvency for the last two years,
  • terminate his/her business for six months after receiving the subsidy.

The recipient has to run business in accommodation services according to the Act No. 455/1991, The Trade Licensing Act, as amended. The total amount of subsidy also depends on the fact whether the accommodation services are operating continuously or seasonally.

The subsidy is provided by the Ministry of Regional Development of the Czech Republic, Ministerstvo regionálního rozvoje České republiky and administrated by State Investment Support Fund, Státní fond podpory investic .

Updates

The following updates to this measure have been made after it came into effect.

06 June 2021

As of 31 May 2021, in COVID Accomodation services programme, 5,119 applications were approved (out of 5,412) by the total amount of CZK 2,398,809,167 (€92,261,891 approx.).

In the second call, COVID Accomodation services II, 5,802 (out of 5,913) collective accomodation facilities were supported by the total amount of CZK 2,726,321,426 (€104,858,516 approx.). Individual accomodation facilities (2,597 applications out of 2,831) were supported by the total amount of CZK 132,934,291 (€511,288 approx.).

01 April 2021

COVID-Culture is replaced by two new programmes COVID - Uncovered costs programme and COVID 2021 programmme .

29 March 2021

COVID-Accomodation services programme has been prolonged by COVID-Accomodation services II.

Under this programme, individual accommodation facilities (i.e. private accommodation, small boarding houses, apartments, rooms, recreational facilities used for temporary accommodation) and collective accommodation facilities are supported. As of 26 March 2021 the support is also intended for camps and cottage settlements. However, he support is not intended for accommodation services in an apartment building (e.g. airbnb).

The relevant period for the programme is from 22 October 2020 until 22 January 2021 except of period from 3 December 2020 till 17 December 2020, when no restrictions on accommodation applied.

Providers of individual accommodation are supported by amount of CZK 200 (€7.7 approx.) per room and day. In the case that the provider is unable to prove the provision of services in the taxation period of 2019, or began its activities only after 31 December 2019, then the support is CZK 100 (€3.8 approx.) per room and day. The provider had to start operations no later than 1 October 2020 and may not terminate the operations within three months from the issue of the decision on the provision of a subsidy. Providers of collective accommodation are - as in the first call - supported by the amount from CZK 100 (€3.8 approx.) to CZK 330 (€12.7 approx.), depends on the quality of services.

Application period for collective accommodation is from 25 January 2021 until 29 April 2021 with the total amount of CZK 3.3 billion (€126,509,488 approx.). For individual accommodation, the application period is from 8 February 2021 until 31 March 2021 with the total amount of CZK 500 million (€19,168,104).

Use of measure

As of 6 October 2020, 2,959 applications were submitted.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The programme has been consulted with the Czech Association of Hotels and Restaurants, Asociace hotelů a restaurací České republiky .

Views and reactions

Supportive.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      I - Accommodation And Food Service Activities I55 Accommodation

This case is not occupation-specific.

Sources

  • 07 September 2020: MMR: COVID-Accomodation call/MMR: COVID-Ubytování výzva (www.mmr.cz)
  • 25 January 2021: MMR: COVID-Accommodation II call - collective accommodation/MMR: COVID-Ubytování II výzva - hromadná ubytovací zařízení (www.mmr.cz)
  • 01 February 2021: MMR: COVID Accommodation II call - individual accommodation/MMR: COVID Ubytování II - výzva Individuální ubytování (www.mmr.cz)
  • 31 May 2021: MMR: Covid programmes statistics/MMR: Statistiky podpořených z covidových programů

Citation

Eurofound (2020), COVID-Accommodation services subsidies, measure CZ-2020-37/1260 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2020-37_1260.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.