The tourism industry in Luxembourg is set to receive a budget amounting to €60 million.
Luxembourg Secretary of State for Economy Francine Closener presented, on 3 August 2017, the 10th Five-Year Plan for Tourism Infrastructure for the period 2018 to 2022.
Since 1973, the government's tourism policy has been based on the needs of the tourism sector and the implementation of nine successive multi-annual plans has made it possible to create or improve tourism infrastructure in the Grand Duchy.
Adopted by the Council of Government on 14 July 2017, the 10th Five-Year Plan allows the Ministry of the Economy to continue to support grants from various stakeholders in their efforts in the interest of tourism in Luxembourg and to develop the country’s tourist offer. Covering the period from 2018 to 2022, the new plan foresees a budget of €60 million, which corresponds to a 33% increase compared to the 9th Five-Year Plan which expires on 31 December 2017.
The 10th Five-Year Plan will enable the Ministry to subsidise tourism projects of municipalities, trade unions and non-profit associations, private investors and owners or operators of various tourist accommodation establishments in Luxembourg. At the level of private investors, foundations, federations and economic interest groups are now also eligible to take advantage of the various subsidies.
The 10th edition of the plan is also innovative in that it facilitates access to investments by reducing the time taken to process applications. Priority will also be given to administrative simplification, transparency and digitisation of tourism actors. Thus, tourism players will be able to benefit from subsidies for the establishment of information and communication technology facilities.
On the other hand, the rate of 20%, which applies to investments improving accessibility for people with reduced mobility, has now increased to 50%. The 10th Five-Year Plan also provides a legal basis to assist natural disaster victims who are eligible for 50% compensation for direct material damage.
In addition, the plan aims to put more emphasis on supporting rural actors, particularly in the hotel sector. Investors or hoteliers who intend to carry out projects in rural areas will be able to benefit from a subsidy of 20% without having to fulfil other special conditions.
The 10th Five-Year Plan also reflects recent developments in the tourism sector. All hotels and campsites must adhere to the official classification to be eligible for a grant. In addition, municipalities and non-profit associations must be members of their Regional Tourist Office (ORT).
According to the World Travel & Tourism Council, the total share of GDP of the Luxembourg economy directly or indirectly related to tourism was 5.1% in 2016 with 18,500 direct and indirect jobs linked to it.
Photo by MECO. L-R: Ricky Wohl, Senior Executive Advisor at the Ministry of the Economy; Francine Closener, Secretary of State for the Economy
