Long-overdue WB tourism project takes off amidst concerns

A long overdue US$16 million (Rs. 2 billion) World Bank-funded project to assist SMEs in the tourism sector finally got off the ground this week but industry officials say it falls short of targeting enterprises that should ideally be streamlined as part of the original plan.

In this respect, enterprises already in the tourism business would be assisted through this funding.

The World Bank funded project mooted around 2007/8 finally received total approval in 2010 identifying certain sectors to benefit under a matching-grant scheme. This week the government advertised in local newspapers calling for applications from the tourism sector SMEs targeting 1500 with at least one year experience in the business, trade associations and new enterprises. Applications are available at People’s Bank branches, which is the implementing agency and close on July 31.

SMEs would be given assistance for 50 per cent of their projects and upto a maximum grant of Rs.10 million for enterprises with an annual turnover of Rs.100 million under the Sustainable Tourism Development Project monitored by the World Bank, Project Director at the Economic Development Ministry A.B.M. Ashraff told the Business Times last Tuesday.

Payment of the total amounts allocated for such assistance to these SME projects would be released in four monthly installments only after at least 25 per cent of the work has been carried out by the entrepreneurs, he said.

Categories identified are restaurants, tea shops, home-stays, gift and souvenir craftsmen, folk arts, greening hotels, refurbishments not constructions; improvement of human re

Please turn to page 9