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The Portuguese “Inland Tourism Agenda”

After national data demonstrate that 2022 was the best year ever for tourism in Portugal in terms of revenue and the figures already available for the first three months of 2023 indicate that they were the best months ever in terms of overnight stays and tourist revenue, the Portuguese Government presented an agenda to “boost, differentiate and materialize” sustainable tourism in the Inland. Despite the positive dynamism of inland tourism, reality shows that 90% of demand is on the coast and that 95% of international tourism is on the coast, the objective is “to reinforce the measures of positive differentiation for tourism in the Interior”, being, essentially, an agenda to “concrete, projects and measures. It is an agenda to act”. The main priorities of the plan “are to value the territory, support companies, qualify human resources, attract people and also connect territories and project the image of the Inland abroad”, with the aim of contributing to territorial cohesion. With an initial global budget of 200 million euros, there are several instruments and action measures. Thus, the “+ Inland Tourism, Territory” line, in the “Value the Territory” component, will have an allocation of 20 million euros to preserve and reinforce the tourist attractiveness of the territories, support up to 70% of eligible expenditure, a maximum of 400.000 euros per project with non-refundable subsidy. Within this line is REVIVE III, which will reclassify and enhance 8 properties, of historical and heritage value, for tourist purposes, in low-density territories. The “Incentive System for Productive Innovation” provides, in a positive differentiation component for the interior, a 5% higher base rate for low-density territories, so that projects in the inland “can more easily reach the maximum incentive rate of 40% of the total eligible investment. In this instrument, which is based on “Investing in Companies, “Microcredit + Interior Tourism”, the 15 million euros include interest-free loans, with an associated performance bonus, which can amount to up to 30% of the loan granted. Here, too, there is positive differentiation towards the interior, a new measure, specific to low-density territories. In the same instrument and measures, the “Mutually Guaranteed Credit Line” will have one of 35 million euros, for the creation, growth/expansion of businesses and treasury support. In this case, the loan with associated mutual guarantee for projects in the interior of up to 4,5 million euros will cover the financing risk by 80% in low-density territories (+10 p.p. in the rest of the country), noting that, “for the first there is a positive territorial distinction for the interior, creating better conditions for bank financing”. The Qualification Offer Support Line (LAQO 2023) +Tourism has an allocation of 50 million euros for the creation, growth/expansion of businesses. This line stipulates coverage of 80% of the financing and a performance premium that can reach 30%, “twice the amount for interest-free financing and non-refundable funding compared to the coast”. The “Capitalize Turismo + Growing” line, a venture capital investment fund, will have an endowment of 10 million euros and will be available for capitalization operations of companies for projects of expansion, internationalization or improvement of competitiveness; merger and consolidation processes of companies, through venture capital; and reinforcement of the companies’ share capital. Funding ranges from €150.000 to €1,5 million and priority access to funding will be given to projects in low-density areas. The “Real Estate Investment Fund for the Inland” will provide 15 million euros for the creation, growth/expansion of businesses, based on real estate assets; as well as for sale & lease back operations (purchase/lease, with option to (re)purchase). Financing is up to €1,5 million per operation. In the internationalization component, this Government new program provides 5 million euros to “reinforce the internationalization of companies and tourism brands located in the inland”. Support is up to 70% of the eligible cost, with a ceiling of 50,000 euros per project. In the field of sustainability, the “Environmental Sustainability Support Line”, has a total allocation of 20 million euros, bank financing can go up to 500.000 euros (mutual guarantee of 80%), also counting on a prize performance fee of 20% (lost fund). In the instruments and measures for “Qualification”, the line “Return + Inland Tourism”, has 400.000 euros to encourage the mobility of people for tourist companies in the inland, with applications approved in the Measure to Support the Return of Emigrants to Portugal or to who benefit from professional internships supported by Turismo de Portugal, with additional support by 25% of the assigned value. The line “Inland Tourism Employment” has more than 400.000 euros of exclusive incentive to the mobility of people for tourism companies in inland territories, with approved applications in the “Inland Employment +”, while the line “Inland Study Tourism” will have 200.000 euros to its willingness to encourage the mobility of students, residing on the coast, to the Hotel and Tourism Schools of Tourism of Portugal located inland, with scholarships also available to support travel and accommodation expenses; reduction and exemption of fees. In “Project”, the “Portugal Events” line will support events in low-density areas, with a 25% surcharge and the “Cinema Support Fund” contributes 40% of the investment for productions shot in the interior. Finally, in “Campaigns”, there will be a focus on carrying out specific campaigns for the interior to reinforce notoriety, with campaigns in the national and international markets, in addition to mobilizing operators, institutions and the community in the campaigns. After national data demonstrate that 2022 was the best year ever for tourism in Portugal in terms of revenue and the figures already available for the first three months of 2023 indicate that they were the best months ever in terms of overnight stays and tourist revenue, the Portuguese Government presented an agenda to “boost, differentiate and materialize” sustainable tourism in the Inland. Despite the positive dynamism of inland tourism, reality shows that 90% of demand is on the coast and that 95% of international tourism is on the coast, the objective is “to reinforce the measures of positive differentiation for tourism in the Interior”, being, essentially, an agenda to “concrete, projects and measures. It is an agenda to act”. The main priorities of the plan “are to value the territory, support companies, qualify human resources, attract people and also connect territories and project the image of the Inland abroad”, with the aim of contributing to territorial cohesion. With an initial global budget of 200 million euros, there are several instruments and action measures. Thus, the “+ Inland Tourism, Territory” line, in the “Value the Territory” component, will have an allocation of 20 million euros to preserve and reinforce the tourist attractiveness of the territories, support up to 70% of eligible expenditure, a maximum of 400.000 euros per project with non-refundable subsidy. Within this line is REVIVE III, which will reclassify and enhance 8 properties, of historical and heritage value, for tourist purposes, in low-density territories. The “Incentive System for Productive Innovation” provides, in a positive differentiation component for the interior, a 5% higher base rate for low-density territories, so that projects in the inland “can more easily reach the maximum incentive rate of 40% of the total eligible investment. In this instrument, which is based on “Investing in Companies, “Microcredit + Interior Tourism”, the 15 million euros include interest-free loans, with an associated performance bonus, which can amount to up to 30% of the loan granted. Here, too, there is positive differentiation towards the interior, a new measure, specific to low-density territories. In the same instrument and measures, the “Mutually Guaranteed Credit Line” will have one of 35 million euros, for the creation, growth/expansion of businesses and treasury support. In this case, the loan with associated mutual guarantee for projects in the interior of up to 4,5 million euros will cover the financing risk by 80% in low-density territories (+10 p.p. in the rest of the country), noting that, “for the first there is a positive territorial distinction for the interior, creating better conditions for bank financing”. The Qualification Offer Support Line (LAQO 2023) +Tourism has an allocation of 50 million euros for the creation, growth/expansion of businesses. This line stipulates coverage of 80% of the financing and a performance premium that can reach 30%, “twice the amount for interest-free financing and non-refundable funding compared to the coast”. The “Capitalize Turismo + Growing” line, a venture capital investment fund, will have an endowment of 10 million euros and will be available for capitalization operations of companies for projects of expansion, internationalization or improvement of competitiveness; merger and consolidation processes of companies, through venture capital; and reinforcement of the companies’ share capital. Funding ranges from €150.000 to €1,5 million and priority access to funding will be given to projects in low-density areas. The “Real Estate Investment Fund for the Inland” will provide 15 million euros for the creation, growth/expansion of businesses, based on real estate assets; as well as for sale & lease back operations (purchase/lease, with option to (re)purchase). Financing is up to €1,5 million per operation. In the internationalization component, this Government new program provides 5 million euros to “reinforce the internationalization of companies and tourism brands located in the inland”. Support is up to 70% of the eligible cost, with a ceiling of 50,000 euros per project. In the field of sustainability, the “Environmental Sustainability Support Line”, has a total allocation of 20 million euros, bank financing can go up to 500.000 euros (mutual guarantee of 80%), also counting on a prize performance fee of 20% (lost fund). In the instruments and measures for “Qualification”, the line “Return + Inland Tourism”, has 400.000 euros to encourage the mobility of people for tourist companies in the inland, with applications approved in the Measure to Support the Return of Emigrants to Portugal or to who benefit from professional internships supported by Turismo de Portugal, with additional support by 25% of the assigned value. The line “Inland Tourism Employment” has more than 400.000 euros of exclusive incentive to the mobility of people for tourism companies in inland territories, with approved applications in the “Inland Employment +”, while the line “Inland Study Tourism” will have 200.000 euros to its willingness to encourage the mobility of students, residing on the coast, to the Hotel and Tourism Schools of Tourism of Portugal located inland, with scholarships also available to support travel and accommodation expenses; reduction and exemption of fees. In “Project”, the “Portugal Events” line will support events in low-density areas, with a 25% surcharge and the “Cinema Support Fund” contributes 40% of the investment for productions shot in the interior. Finally, in “Campaigns”, there will be a focus on carrying out specific campaigns for the interior to reinforce notoriety, with campaigns in the national and international markets, in addition to mobilizing operators, institutions and the community in the campaigns.