Hotels encouraged to update rooms

A NEW loan scheme to encourage Tasmanian hotels and motels to update their accommodation offering should remove financial barriers which have historically held back investment, tourism experts say.

The $20 million Tourist Accommodation Refurbishment Loan Scheme, developed by the Co-ordinator General, will provide loans of between $50,000 and $1.5 million to established businesses at a concessional rate of 3.26 per cent interest over a five-year-term.

Homes and shacks that are part of the sharing economy will not qualify.

Tourism Industry Council Tasmania chief executive Luke Martin said the loan scheme could open financial doors for accommodation operators particularly in regional areas like Flinders Island and the West Coast, who had long complained banks were loath to back their upgrade plans.

“It is great to see the State Government deliver on it,” Mr Martin said.

“The standard of accommodation on offer has been recognised as an industry challenge. The number of visitors coming to Tasmania is growing and new markets are emerging and we need to cater to them.”

Premier Will Hodgman said tourism was booming and it was time to ensure visitors had a great experience, wherever they stayed.

“We acknowledge that if Tasmania wants to stay on top of the tourism tree we have to invest,” Mr Hodgman said at East Devonport’s Argosy Hotel.