Background information

On 25 August 2021, the Procedure for Compensating Accommodation Providers for the Third Night Accommodation of Tourists was approved by Order No 4-944 of the Minister for the Economy and Innovation of the Republic of Lithuania. This Procedure provides for a mechanism to compensate a third night’s stay of foreign tourists from public funds. The aim of the measure is to attract more foreign tourists to Lithuania, as the number of such tourists has significantly decreased in Lithuania since the start of the COVID-19 pandemic. 73% fewer foreign tourists visited Lithuania in 2020 compared to 2019.

Content of measure

The Procedure document stipulates that if a foreign tourist stays in Lithuania for at least two nights, the State will cover most of the cost of a third night’s stay (or the total costs if the price does not exceed €65). The maximum amount of the compensation is €65 per night. If the tourist stays in a hotel where the accommodation costs more than €65 per night, the difference between the cost of the accommodation and the reimbursable amount shall be paid by the tourist.

Accommodation providers interested in providing accommodation with state aid should register on the project website: https://stayin.lithuania.travel/.

The Third Night project started in Lithuania on 1 September 2021 and will run until 8 November 2021. The Ministry of the Economy and Innovation (MEI) estimates that accommodation establishments receiving personal payments from tourists for two nights should generate an additional income of around €2.4 million apart from tourists' expenditure on meals, entertainment, etc.

It is important to note that the compensation is granted as de minimis aid in accordance with Regulation No 1407/2013. According to this Regulation, the maximum amount of de minimis aid per accommodation provider and its related economic entities must not exceed €200,000 over three tax years.

Use of measure

According to the Ministry of the Economy and Innovation (MEI), the amount available for compensations is €756,800; around 11,000 people could benefit from the compensation.

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 Social partners jointly	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

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

• No involvement
• Main level of involvement: Sectoral or branch level

Involvement

Social partners were involved through informal consultations.

Views and reactions

According to the president of the Lithuanian Association of Hotels and Restaurants (LAHR), the measure will not be effective as most of the hotels have already used up the de minimis aid, i.e. €200,000 over three years, having benefited from other public support measures (interest reimbursement, vouchers for medical staff, etc). According to the President of the LAHR, hotels see this measure only as a marketing tool to make Lithuania known, but the hotels are unlikely to benefit from the measure itself.

Sectors and occupations

This case is not occupation-specific.

Sources

• 18 December 2013: Commission regulation No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (eur-lex.europa.eu)
• 02 September 2021: The Third Night project launched – tourists will be able to extend their stay in Lithuania free of charge (eimin.lrv.lt)
• 02 September 2021: Sceptical about the idea of "Third Night’s Stay" - it will help to promote Lithuania, but hotels will not benefit (www.lrt.lt)