Up to $1.5M is available from the Tourist Accommodation Refurbishment Loan Scheme for refurbishment projects to improve and upgrade existing tourist.
Tourist Accommodation Refurbishment Loan Scheme
Tourist Accommodation Refurbishment Loan Scheme provides low interest loans to Tasmanian commercial accommodation businesses to help with the costs of upgrading and refurbishing their facilities.
Background
The Tourist Accommodation Refurbishment Loan Scheme forms part of the Tasmanian Government’s Visitor Economy Strategy by investing in quality visitor infrastructure and aims to increase the level of existing accommodation infrastructure on offer to meet market demand and visitor expectation.
The Tourist Accommodation Refurbishment Loan Scheme will provide financial assistance to tourist accommodation operators who own a commercial tourist accommodation business in Tasmanian for projects that will improve and upgrade existing accommodation facilities and increase the standard of accommodation offering and service in regions where demand exceeds supply.
Funding
Loans of up to $1.5 million is available for eligible tourist accommodation businesses operating in Tasmania for refurbishment projects that will improve and upgrade existing tourist accommodation facilities and increase the standard of accommodation offering in regions where demand exceeds supply. Loan amounts will be no less than $50 000.
The maximum loan term normally up to five years, longer terms up to 10 years may be considered in specific circumstances.
Eligible Projects
Eligible purposes include:
- Projects that involve reconfiguring existing accommodation facilities
- Redecorating projects
- Cosmetic changes
Examples could include but are not limited to:
- Redecorating or reconfiguring guest rooms to improve the appearance or the space
- Refurbishment of existing common guest space, such as reception area
- Installing new bathrooms
- Upgrading or introducing facilities or amenities
- Introduction of new guest facilities
- Creating new rooms from unused space
Eligible Applicants
To be eligible to apply applicants must:
- Own a commercial tourist accommodation business in Tasmanian where the accommodation establishment meets the following definition:
- A commercial establishment that provides short term accommodation for persons away from their normal place of residence. Typically each room for guest hire is available to hire individually and may include a private bathroom facility and or limited cooking facilities.
- The accommodation establishment must be an accredited tourism business and:
- Have three or more rooms available to hire if it is located in a suburban or regional area; or
- Have five or more rooms available to hire if it is located in the CBD of a city.
All applicants must:
- Demonstrate that the project will improve occupancy levels of the establishment or improve service and quality of offering to visitors;
- Include a refurbishment plan that includes detailed costings for the project;
- Operate as a sole trader, trust, partnership or private company;
- Demonstrate a clear need for the loan, to the satisfaction of the Office of the Coordinator-General, and projects must show an improvement to the current infrastructure;
- Include a minimum five year business plan to the satisfaction of the Office of the CoordinatorGeneral (in some cases the Office of the Coordinator-General may request that the applicant use a recognised consultant to assist with the plan);
- Undertake an annual review of the approved business plan and report on performance against the business plan;
- Demonstrate ongoing financial viability with the loan application and business plan showing that the venture will be profitable within the agreed loan period; and
- The business must be registered for tax purposes in Australia with an Australian Business Number (ABN) and be registered for GST.
Timing
Applications close 31 July 2019.
