The system providing compensation for investors' expenses in building and equipping new hotels in Uzbekistan has been extended for three more years, but the subsidy application process has become more complex, Gazeta.uz has reported.
This extension is stated in the decree issued by the president of Uzbekistan on July 27. The program was initiated in 2019 and was originally scheduled to run until the end of 2023.
Previously, the subsidy was canceled at the end of 2022. To qualify for the subsidy, the hotel must be operational by January 1, 2026, have a minimum of three stars and at least five floors (previously, there were no floor requirements). Additionally, it must meet new room quantity criteria:
- UZS 40mn ($3,456) per room for 3-star hotels with 60 or more rooms (previously, 50 rooms were required);
- UZS 65mn ($5,616) per room for 4-star or 5-star hotels with 120 or more rooms (previously, 100 rooms were required).
If there are no hotels with star ratings in the city or region, the subsidy will be increased by 50%. The first three 3-star hotels will receive a subsidy of UZS 60mn ($5,184) per room, while the first two 4-star or 5-star hotels will receive UZS 97.5mn ($8,424) per room.
The document also extends compensation for acquiring prestigious hotel franchises (from the top 50 hotel brands and top 5 hotel chains) until December 31, 2026:
- $200 per room per year for 3-star hotels;
- $400 per room per year for 4-star hotels;
- $600 per room per year for 5-star hotels.
In addition, until January 1, 2025, hotels without star ratings will have their expenses covered for obtaining a 3-star or higher certification.
In Karakalpakstan and regions, at least 15 plots will be put up for online auctions for hotel construction.
For hotel projects investing $10mn or more, engineering communications will be provided from the state budget. To cover subsidies, UZS 150bn ($13mn) will be annually allocated from the state budget to the tourism support fund.
As we reported earlier, from 2024, Uzbekistan's tour operators will receive subsidies of up to $100 per tourist from low-tourism-inflow countries. The government will also reimburse part of the expenses for charter flights to Samarkand, Bukhara, and Urgench. Camping and safari tourism organizers will receive tax reductions.
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