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Factsheet for measure DK-2021-23/1943 – measures in Denmark

Summer business package to boost economy and holiday activities

Sommer- og erhvervspakke skal sætte gang i økonomien og ferieaktiviteterne

Country Denmark , applies nationwide
Time period Open ended, started on 04 June 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound
Measure added 09 July 2021 (updated 19 July 2021)

Background information

In summer 2021 the reopening of society has begun and the infection rate decreases and vaccines are distributed. There is potential for a relatively rapid economic recovery, partly on the basis of a large number of measures already taken, and the government's expert group now recommends that efforts be made to phase out the aid packages. However, a number of professions – tourism, travel and aviation – are still in a very vulnerable position due to the major consequences of COVID-19 throughout the pandemic. The government, together with a political majority, has therefore launched a large summer business package aiding hard-hit sectors while also creating improved holiday experiences for guests and travelers.

Content of measure

On 4 June 2021 the government, together with a political majority launched a large summer business package aiding hard-hit sectors while also creating improved holiday experiences for guests and travelers. The package has been allocated DKK 1.6 billion (€215 million). The agreement is a voting agreement. The parties to the agreement undertake to vote in favour of the acts, notices, etc. which implement the agreement. The Approval of State aid by the European Commission shall be subject to approval by the Commission for the initiatives where necessary.

The agreement and measures are divided into six main areas, which are:

DKK 295 million (€40 million) for boosting the tourism industry:

  • A fund of DKK 125 million, to which hotels, restaurants, conference centres and other hard hit tourism companies can seek cash grants to adapt in the light of the COVID-19 crisis. For example, grants may be sought to invest in new digital solutions, necessary conversions, competence development of employees or anything else that could lead to a change of company.
  • DKK 70 million for dining experiences in the larger cities. Including a fund where restaurants can apply for grants up to DKK 35,000.
  • DKK 50 million for the extension of Comeback Copenhagen and the upcoming recovery plan for the capital's tourism for 2022-2023, developed jointly between Wonderful Copenhagen, Copenhagen Municipality and the Ministry of Industry.
  • DKK 25 million for strengthened marketing of coastal and nature tourism internationally and marketing of Danish Destinations.
  • DKK 15 million for restart efforts in Danish Coastal and Nature Tourism.
  • DKK 5 million for sustainable development of outdoor tourism.

DKK 110 million (€15 million) to cheaper domestic travel during the summer period:

  • An allocation of DKK 75 million for pedestrians, cyclists and cars with disabled parking to sail between Danish ports and islands free of charge in the summer 2021.
  • DKK 35 million is allocated for the creation of a travel pass system during the school holiday, that is a 8 days free-travel ticket by public transport for the total sum of DKK 399 (children under 12 are free, 12-15 half price).

DKK 330 million (€44 million) to efforts targeted at cultural, sports and association activities:

  • DKK 59 million for a fund for cultural and sports experiences under the auspices of associations and evening schools
  • DKK 180 million for an activity fund for cultural activities
  • DKK 20 million for an activity fund for audience-friendly initiatives for institutional types with fixed attractions
  • DKK 40 million for an activity fund for artistic summer activities
  • DKK 10 million for an activity fund for local sports and scout associations
  • DKK 1 million for coverage of the inspection fee for amusement parks and travelling carnivals
  • DKK 15 million for marketing the experiences, culture and events of big cities
  • DKK 5 million to kick-start cultural tourism in major cities

DKK 165 million (€22 million) for 7 initiatives for vulnerable people, people with disabilities, children, adolescents and the elderly DKK 400 million (€54 million) for particularly vulnerable sectors:

  • DKK 195 million for the extension of match financing schemes in the Growth Fund
  • DKK 50 million for consolidation of travel package funds
  • DKK 3.9 million for administrative contribution to the Danish Travel Guarantee Fund and the Danish Competition and Consumer Authority
  • DKK 11.1 million for the subsidy for restarting the package travel industry
  • DKK 53 million for a conversion pool for particularly vulnerable sectors
  • DKK 27 million for an extension of aid scheme for the salaries of critical staff of airlines
  • DKK 60 million for the reduction of safety tax for airlines

DKK 305 million (€41 million) for 19 export initiatives during years 2021-2023 to support Danish exports, which in a number of areas must recapture markets that have been affected by the corona crisis. The chairmen of the government's restart teams have again taken stock of the situation of the export industries and, on this basis, have made recommendations to the government on which efforts should be prioritised in the current year and the next two years. The initiatives focus on enhanced marketing, enhanced digital innovation in business and green market opportunities.

Use of measure

No informarion on usage is available yet.

Target groups

Workers Businesses Citizens
Particular professions
Sector specific set of companies
Importing/Exporting companies
Children (minors)
Youth (18-25)
Disabled

Actors and funding

Actors Funding
National government
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: N/A

Involvement

No direct involvement.

Views and reactions

Head of Tourism and Experience Economy in Dansk Erhverv (The Danish Chamber of Commerce), Lars Ramme Nielses, states that they have requested initiatives to attract more tourists to Denmark and the capital, and are happy for the measures taken. The economic package for the business community that are still hardly affected by consequences of the pandemic, is a great help to the businesses, but the initiatives are not as major as they would have hoped. The export package is highly appreciated, mentioned are great opportunities for exporting green solutions as well as the agreement's focus on SMEs' opportunities to strengthen their exports and e-commerce, which is stated as good news for Danish business.

Sources

  • 04 June 2021: Aftale om sommer- og erhvervspakke mv. (em.dk)
  • 04 June 2021: Sommer- og erhvervspakke skal sætte gang i økonomien og ferieaktiviteterne (em.dk)
  • 04 June 2021: Sommerpakken er solstrejf i en vandpyt (www.danskerhverv.dk)

Citation

Eurofound (2021), Summer business package to boost economy and holiday activities, measure DK-2021-23/1943 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2021-23_1943.html

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