Spanish government to give tourism a €221 million boost

Ronda's natural appeal will be given a welcome boost by Spain's tourism industry next year

It’s the backbone of the economy, its most famous export, and the entry point for millions of new love affairs with Spain every year, so it’s only right that it gets a rather generous gift this Christmas.

The Spanish Secretary of Tourism, Isabel Borrego, has announced this week that the Spanish government will provide its tourism sector with €221 million in the form of grants and loans in 2014 in a concerted effort to make the country even more irresistible than it already is…

The money marks the first time that private companies within the tourism sector – such as hotels, restaurants, car hire companies and many more connected businesses – will be eligible to apply for financial assistance from Spain’s Tourism Infrastructure Modernisation Fund (FOMIT), which has been allocated the lion’s share – €182 million – of the monies.

As part of FOMIT’s agreement with the government, €31 million of that money will be spent on supporting a number of small-to-medium sized enterprises. These companies have traditionally been the bedrock upon which Spain’s tourism success has been built, and are also the entities least able to secure much-needed loans from banks in order to grow and adapt in an ever-shifting market.

A further €6 million will be spent on a tourism advertising and promotion campaign, designed to maximise Spain’s appeal throughout new and growing markets, such as Russia and the Middle East, while also maintaining the government’s heavy presence at all of the important international trade shows.

Some €14 million will also be allocated to the repayment of loans, intended to alleviate some of the financial pressure that many of Spain’s leading tourism institutions have operated under for the past four of five years.

This Government investment is joined by the swelling of an additional fund called the Emprendetur, which is armed with a further €190 million designed to support young entrepreneurs in Spain.

With more than €400 million to share between them next year, Spain is hedging its bets that both its tourism industry and its entrepreneurial spirit can really help the country’s nascent recovery truly blossom in 2014.