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Factsheet for measure PT-2021-42/2071 Updated – measures in Portugal

Subsidies for companies in the Adapt Tourism Program

Programa Adaptar Turismo

Country Portugal , applies nationwide
Time period Open ended, started on 15 October 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Heloisa Perista and Maria da Paz Campos Lima (CESIS)
Measure added 20 October 2021 (updated 10 July 2023)

Background information

Under the "Plan to reactivate tourism and build the future" established by the Resolution of the Council of Ministers of 76/2021 of 20 May, Legislative Order 24/2021 establishes a mechanism to support the recovery of business activity called the Adapt Tourism Programme (Programa Adaptar Turismo). This measure adapts the tourism industry SMEs (micro, small and medium sized companies) and supports their efforts to adapt and invest. The measure supports new methods of work organisation and relationships with customers and suppliers in the post-COVID-19 context.

Content of measure

The measure provides financial support to micro, small and medium sized companies in the tourism industry.

The eligibility criteria to receive funds for investment projects are as follows:

  1. Projects have to invest at least €2,500;
  2. Have a maximum duration of execution of 12 months, counting from the date of notification of the favourable decision, with a deadline of 31 December 2022;
  3. Not be initiated on the date of submission of the application;
  4. Comply with the legal and regulatory provisions.

Non-refundable support covers 75% of eligible expenses, up to €15,000. For companies that were closed due to the COVID-19 pandemic, they can have 85% of the eligible expenses covered, up to €20,000.

Eligible expenses include:

  • Qualification, modernisation and expansion of existing spaces, including adaptation responding to needs arising from the COVID-19 pandemic;
  • Acquisition and installation of automatic payment devices, including self-check-in and self-check-out systems;
  • Initial costs associated with applications/software relevant to the context following the COVID-19 pandemic, including: investment in hardware; initial adhesion to e-commerce platforms; initial subscription of applications in software as a service regimes for interaction with customers and suppliers;
  • Creation of a website/online store/app justified by the current context, as well as the creation of new electronic content and the inclusion in directories or search engines;
  • Acquisition of specialised consulting services for adapting the business model to the new challenges of the context following the COVID-19 pandemic, as well as for the qualification, modernisation and expansion of the resulting facilities;
  • Expenses with the intervention of certified accountants or statutory auditors, in the validation of the expense of payment requests, up to the value of 15% of the value of the investment and with a limit of €2,500.
  • Only one application per company can be submitted.

According to the legislative order 24/2021 of 15 February, the support measure is financed by Turismo de Portugal, I.P., using the its own annual revenue. It has a budget of €5 million. The legislative order 27/2021 of 29 October added €5 million to the budget, making it a total of €10 million. This support instrument complies with the state aid scheme, under the Regulation (EU) No. 1407/2013 of 18 December.

Updates

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

16 February 2023

Normative Order 3/2023 has changed the deadline for the conclusion of projects, allowing reprogramming with a new deadline of up to 12 months from the date of notification of the funding decision.

However, applications to the Adapt Tourism Programme are closed since 22 October 2021, once the submitted applications have exhausted the planned budget.

Use of measure

According to the press , the Ministry of the Economy 1,061 companies in the tourism sector applied for this funding. These requests amounted to €19.6 million in support, an amount that represents the double of the €10 million allocated.

Target groups

Workers Businesses Citizens
Does not apply to workers SMEs
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 Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

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

  • Only employers' organisations
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The social partners were informed and consulted in the context of tripartite concentration. The Portuguese Tourism Confederation (CTP) is represented in the monitoring committee of the "Plan to reactivate tourism and build the future" to which this new measure is linked.

Views and reactions

The social partners expressed generally supportive views.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      I - Accommodation And Food Service Activities I56 Food and beverage service activities
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R93 Sports activities and amusement and recreation activities

This case is not occupation-specific.

Sources

  • 16 June 2021: Resolução do Conselho de Ministros n.º 76/2021 (data.dre.pt)
  • 15 October 2021: Despacho Normativo n.º 24/2021 de 15 de Outubro (files.dre.pt)
  • 29 October 2021: Despacho Normativo n.º 27/2021 de 29 de Outubro (files.dre.pt)
  • 15 February 2023: Despacho Normativo n.º 3/2023 (dre.pt)

Citation

Eurofound (2021), Subsidies for companies in the Adapt Tourism Program, measure PT-2021-42/2071 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2021-42_2071.html

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