Hotels rated four-star and below will pay less interest on their existing bank loans hereafter under a government support scheme. For instance, a hotel currently paying 12 per cent interest will see its rate reduced to seven per cent, lowering its monthly interest payments.
The government has approved Nu 844 M for the initiative. The announcement was made during the question-and-answer session in the National Assembly on Friday.
The initiative, introduced under the Economic Stimulus Programme, aims to support hotels struggling with low occupancy and rising operating costs.
Industry, Commerce and Employment Minister Namgyal Dorji said, “The government is covering four per cent of the interest, while participating banks provide an additional reduction of at least one per cent. This gives eligible hotels at least five per cent interest relief for a year. So far, 184 hotels are benefiting from the scheme.”
Besides financial support, the government has also relaxed accommodation requirements to help smaller hotels attract international tourists.
International tourists can now book accommodation directly at lower-rated hotels without going through tour operators, provided the hotels are certified by the Tourism Department. Tourists can also choose to stay in village homestays.
The government also expects tourism promotions, festivals and events to attract more visitors to different parts of the country, creating business opportunities for local hotels.
Meanwhile, data from the central bank show that hotels had borrowed more than Nu 24 billion through 1,113 loan accounts as of March this year.
Three-star hotels accounted for Nu 17 billion of the total loans. However, more than Nu 400 million of these loans have since turned into non-performing loans.
Deki Lhazom
Edited by Passang
