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Factsheet for measure NO-2020-25/1824 – measures in Norway

Funding of restructuring projects in the tourist industry

Omstillingsmidler til reiselivsbransjen

Country Norway , applies nationwide
Time period Open ended, started on 19 June 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 Aasmund Arup Seip, FAFO and Eurofound
Measure added 08 April 2021 (updated 04 May 2021)

Background information

19 May 2020, the Government proposed to allocate €24.8 million (NOK 250 million) to restructuring projects in the tourist industry. The measure was adopted in July 2020, and an additional funding of €29.8 million (NOK 300 million) was allocated in December 2020. Through the scheme, the tourist industry can apply for support to implement development and restructuring measures.

23 February 2021, the Storting approved another €99.3 million (NOK 1 billion) for restructuring projects in the tourist industry. Of this, €4.96 million (NOK 50 million) was allocated to restructuring projects in the event industry NO-2020-36/1811 . The scheme is aimed at companies in the tourist industry that can document a fall in turnover of more than 30% in the last two full months before the application date.

Content of measure

The restructuring scheme for the tourist industry aims at making it easier for companies to adapt to infection control measures and changes in the market during the COVID-19 pandemic. The scheme will provide companies with better liquidity so that they can adapt to infection control measures and changes in the market. The scheme currently covers the event and tourism industries, including parts of the catering industry. The government will consider extending the scheme to include other industries that are hard hit by infection control measures. The scheme is aimed at companies that can document a fall in turnover of more than 30%, and the companies can receive grants for costs related to planned restructuring projects. The scheme can also support projects that involve conversion to other industries where resources can be utilised better.

Innovation Norway will be the grant manager and administers the scheme.

Use of measure

In the first application round, 241 companies received a total of €23.5 million (NOK 237 million). In the next application round in December 2020, 616 companies applied for a total of €88.4 million (NOK 890 million). This application round has not been finalised as the government proposes to use parts of the new allocation for grants to good projects applications that did not get funding in the second application round due to budget limits in the scheme.

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
Public support service providers
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:

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

Involvement

Social partners have been consulted regularly during design and implementation of the measure.

Views and reactions

The social partners are supportive of the measure.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      H - Transportation And Storage H49 Land transport and transport via pipelines
      H50 Water transport
      H51 Air transport
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
      M - Professional, Scientific And Technical Activities M74 Other professional, scientific and technical activities
      N - Administrative And Support Service Activities N77 Rental and leasing activities
      N79 Travel agency, tour operator and other reservation service and related activities
      N82 Office administrative, office support and other business support activities
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R91 Libraries, archives, museums and other cultural activities
      R93 Sports activities and amusement and recreation activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2021), Funding of restructuring projects in the tourist industry , measure NO-2020-25/1824 (measures in Norway), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NO-2020-25_1824.html

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