Tourism - European Commission's guide on EU funding
The Guide gathers information on sources of EU funding of interest to the European tourism industry, from both private and public sector
As the third largest European economic sector, tourism has a strategic importance for the EU and a broad impact on economic growth, employment and social development. With the adoption of the EU Multi-Annual Financial Framework for 2014-2020 new programmes are phased in while old programmes are phased out.
In this context, European Commission launched a guide reviewing all these continuities and novelties.
What's the guide about
The guide focuses on the most important EU programmes for the tourism sector, around practical questions: type of tourism-related actions eligible for funding; type and level of funding; who can apply; how to apply and when. For each programme, it also gives examples of successful projects in the past.
European Regional Development Fund
The European Regional Development Fund (ERDF), one of the five European Structural and Investment Funds (the others are: European Social Fund, Cohesion Fund, European Agricultural Fund for Rural Development, European Maritime & Fisheries Fund.), has 11 thematic objectives and investment priorities in line with the Europe 2020 policy priorities. The most relevant for the tourism sector are:
- research and innovation (thematic objective nr. 1)
- information and communication technologies (thematic objective nr. 2)
- competitiveness of small and medium-sized enterprises (thematic objective nr. 3)
- shift to a low-carbon economy (thematic objective nr. 4)
- environmental protection and resource efficiency (thematic objective nr. 6)
- employment and support for labour mobility (thematic objective nr. 8)
- education, skills and lifelong learning (thematic objective nr. 10)
ERDF not only supports regional and national programmes in the Member States. It also finances European Territorial Cooperation (ETC) which covers Cross-border co-operation programmes, 7 Transnational co-operation programmes, between regions from several EU Member States and Interregional co-operation programmes.
These programmes may support:
- tourism-related research, technological development and innovation, including service innovation and clusters,
- the development of tourism-related ICT products,
- the development of innovative tourism services,
- the development of high value added products and services in niche markets by mobilising specific local resources and therefore contributing to smart regional specialisation,
- clustering activities among different tourism industries as well as with creative industries, to diversify regional tourism products and extend the tourism season,
- activities connecting the coastal regions to the hinterland for more integrated regional development,
- measures to improve energy efficiency and renewable energy use among tourism SMEs,
- the protection, promotion and development of natural and cultural tourism assets and related services,
- small-scale cultural and sustainable tourism infrastructure,
- measures in favour of entrepreneurship, self-employment and business creation as well as the internationalisation of tourism SMEs and clusters,
- vocational training, skills upgrading.
All legal persons - such as public bodies, companis and in particular SMEs, research organisations, universities, non-governmental organisations, tourism clusters, etc. - can apply.
Cohesion Fund
The Cohesion Fund is another of the five European Structural and Investment Funds. Under ESIF rules, each Member State has to draw up and implement a strategic plan indicating its 2014-2020 objectives investment priorities for the use of these funds. Once the European Commission's observations adequately taken into account, this plan becomes a "Partnership Agreement". Member States also have to draw up "Operational Programmes" that are implemented by Managing Authorities set up by the Member States (at national, regional or another level).
According to the investment and infrastructure needs specific to each Member, the Cohesion Fund may support investment in the environment - including areas related to sustainable development and energy which present environmental benefits – and trans-European transport networks (TEN-T) in the area of transport infrastructure.
Types of tourism-related actions eligible for funding under the Cohesion Fund depend on the needs of each eligible Member State, as defined in their Operational Programmes.
The level of funding is defined in the calls prepared by Managing Authorities, within the maximum cofinancing rate of 85%.
European Social Fund
The European Social Fund is one of the five European Structural and Investment Funds. Again, under ESIF rules, each Member State has to draw up and implement a strategic plan indicating its 2014-2020 objectives investment priorities for the use of these funds.
Eligible actions are listed in the Operational Programmes prepared by the Member States. Depending on their choices, funding from the European Social Fund may be used, among other things, for:
- training workers to help companies having to cope with restructuring or a lack of qualified workers ,
- training people in difficulty and those from disadvantaged groups to get better skills and jobs,
- supporting mutual learning, establishing networks, and disseminating and promoting good practices and methodologies in the domain of social innovation.
Most actions are regional or national, but the ESF can also support transnational and interregional co-operation, depending on the approach defined in Operational Programmes.
All legal persons active in the labour market or in the fields of education & training - such as SMEs, chamber of commerce, trade union, foundation, NGO, etc. - can apply.
ESF provide grants. All projects have to be co-financed, with a maximum EU contribution of 50% to 85% (95% in exceptional cases) of the total project costs depending on the relative wealth of the region. The level of funding varies depending of the project and the Operational Programme.
European Agriculture Fund for Rural Development
The European Agriculture Fund for Rural Development (EAFRD) aims at promoting economic development in rural areas. Funds for rural development are allocated by Managing Authorities appointed by the Member States. Depending on the needs and choices of each Member State, support may be granted to:
- the diversification of farmers into non-agricultural activities,
- the development of non-agricultural SMEs in rural areas and engaged in sustainable & responsible tourism,
- the restoration / upgrading of the cultural and natural heritage of villages and rural landscapes.
National and regional "Rural Development Programmes" prepared by the Member States may fund tourism-related actions, such as:
- vocational training and skills acquisition actions (courses, workshops, coaching, etc., for instance on how to develop rural tourism), demonstration activities and information actions
- advisory services to help farmers, forest holders, other land managers and SMEs in rural areas to improve their economic performance
- business start-up aid as well as investments for non-agricultural activities in rural areas (rural accommodation, shops, restaurants, guided tours, …)
- drawing up and updating of plans for the development of municipalities and villages in rural areas
- investments for public use in recreational infrastructure, tourist information and small scale tourism infrastructure
- studies and investments associated with the maintenance, restoration and upgrading of the cultural and natural heritage of villages, rural landscapes and high nature value sites, including related socio-economic aspects, as well as environmental awareness actions,
- co-operation involving at least two entities (creation of clusters and networks; co-operation among small operators in organising joint work processes and sharing facilities and resources and for the development and/or marketing of tourism services relating to rural tourism; …)
Any natural or legal person active in rural areas – such as farmer, forestry company, SMEs operating in rural areas, etc. - and Local Action Groups can apply.
The EAFRD provide grants, with a minimum contribution rate of 20%. Each Rural Development Programme prepared by the Member States includes a table setting out a specific EAFRD contribution rate for each type of operation. For co-operation actions, support is limited to maximum 7 years.
European Maritime and Fisheries Fund
Replacing the European Fisheries Fund, the European Maritime and Fisheries Fund (EMFF) has among its priorities to increase employment and territorial cohesion in coastal and inland communities depending on fishing and aquaculture. This should be achieved by:
- the promotion of economic growth, social inclusion, creation of jobs and supporting labour mobility in these communities;
- the diversification of activities within fisheries and into other sectors of maritime economy.
The EMFF may support tourism-related actions, such as:
- studies;
- projects, including test projects and cooperation projects;
- conferences, seminars, for a and workshops;
- public information and sharing best practice, awareness raising campaigns and associated communication and dissemination activities such as publicity campaigns, events, the development and maintenance of websites, stakeholder platforms;
- professional training, life-long learning and the acquisition of new professional skills enabling professionals of the fisheries sector or their life partners to enter into tourism activities or to carry out complementary activities in the field of tourism.
All legal and natural persons in coastal and inland communities. The EMFF provides grants to co-finance projects, along with national funding. The operational programme of each country establishes the EMFF contribution rate applicable to each of the objectives. The maximum EMFF contribution rate is 75% of the eligible public expenditure. The minimum EMFF contribution rate is 20%
LIFE
LIFE is the financial instrument supporting environmental and nature conservation projects throughout the EU. The most relevant tourism-related actions are probably those envisaged under the so-called Traditional Projects, which may take different forms:
- pilot projects assess the effectiveness of a method/approach that is new or has been used in a different context; they compare its results with those produced by best practices, in order to determine if the method should be tested on a larger scale and inform stakeholders;
- demonstration projects test and evaluate a method/approach that is new or has been used in a different context; they inform other stakeholders of the results and, where appropriate, encourage them to apply these methods / approaches;
- best practice projects apply appropriate, cost-effective and state-of-the-art techniques, methods and approaches taking into account the specific context of the project,
- information, awareness and dissemination projects related to one of the priority areas.
All legal persons can apply to grants for Tradition projects.
Horizon 2020
Horizon 2020 is the EU Framework Programme for Research and Innovation (2014-2020). It is made of programme sections, some being divided in sub-sections. The most interesting sections for tourism are:
- "Excellent Science" - sub-section MSCA ("Marie Skłodowska-Curie Actions") for career development and training of researchers – with a focus on innovation skills – in all scientific disciplines through worldwide and cross-sector mobility,
- "Industrial Leadership" - sub-section programme LEIT ("Leadership in Enabling and Industrial Technologies"), among other things, for greater competitiveness of the European cultural and creative sectors by stimulating ICT innovation in SMEs Technologies,
- "Societal Challenges" - sub-section programme "Europe in a changing world - Inclusive, innovative and reflective societies", hereafter Reflective, to address in particular the issues of memories, identities, tolerance and cultural heritage,
- "SME instrument" for high-potential SMEs to develop ground-breaking innovative products, services or processes that are ready to face global market competition.
Who can apply within the tourism sector to MSCA, LEIT and Reflective calls?
- all natural or legal persons (any public body, company, research organisations, universities, non-governmental organisations, ...) regardless of their place of establishment or residence, but possessing the operational and financial capacity to carry out the proposed research tasks
- SMEs from creative industries (particularly but not exclusively targeted by LEIT)
- ICT technology providers (particularly but not exclusively targeted by LEIT)
Who can apply within the tourism sector to SME Instrument calls?
- SMEs
COSME
COSME is the EU programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises.
Type of tourism-related actions eligible for funding:
Access to finance. Any type of useful transaction or investment for the development of legitimate SMEs activities.
Tourism Action Plan. Some of the Tourism Action Plan's objectives are pursued through calls for Proposals and calls for tenders open to the tourism sector.
Erasmus for young entrepreneurs. This exchange scheme allows young entrepreneurs to spend 1 to 6 months with an experienced entrepreneur based in another European country and ready to act as a mentor. Young entrepreneurs and their hosts get to discover new European markets or business partners, different ways of doing business, and possibly decide to continue their collaboration on the longer-term. For young entrepreneurs, this action also eases the successful start of their business or strengthens their new enterprise. As for host entrepreneurs, they benefit from fresh ideas from a motivated new entrepreneur who may have specialised skills or knowledge which complement yours
Who can apply within the tourism sector?
- Access to finance: SMEs
- Tourism Action Plan: All legal persons (SMEs, NGOs, public authorities, etc)
- Erasmus for young entrepreneurs: Entrepreneurs
Creative Europe Programme
The Creative Europe programme aims at helping cultural and creative organisations to operate transnationally, the circulation of works of culture as well as the mobility of cultural players. It is made of 3 parts:
- the "Culture sub-programme" for cultural & creative sectors
- the "Media sub-programme" for the audio-visual industries
- the Cross-sectoral strand for joint projects between the cultural & creative sectors and the audio-visual industries.
Tourism-related actions eligible for funding could be:
- transnational cooperation projects,
- European networks,
- European Capitals of culture,
- Cross-Sectorial strand.
Who can apply within the tourism sector?
Transnational cooperation projects: All legal persons active in the cultural and creative sectors; they must have had a legal personality for at least 2 years on the date of the deadline for submission of applications.
European networks: networks active in the cultural and creative sectors, consisting of at least 15 member organisations (legal persons) established in at least 10 participating countries; these European networks must have had a legal personality for at least 2 years on the date of the deadline for submission of applications.
European Capitals of culture: Cities
Erasmus +
"Erasmus+" aims to boost skills and employability, as well as modernising Education and Training.
Type of tourism-related actions eligible for funding:
- learning opportunities for individuals through Mobility Projects for Higher Education Students and Staff, a loan guarantee scheme to help Master's degree students financing their studies abroad and Mobility Projects for VET Learners and Staff;
- cooperation between educational institutions, businesses, local and regional authorities and NGOs, mainly through Joint Master Degrees, Strategic Partnerships, Knowledge Alliances and Sector Skills Alliances;
- not-for profit European sport events encouraging participation in sport and physical activity.
Who can apply within the tourism sector?
Mobility projects for Higher Education:
- Universities and other higher education institutions / Professional or vocational schools
- All legal persons active in the labour market or in the fields of education & training (e.g. SMEs, chamber of commerce, trade union, foundation, NGO, …)
Jount Master Degrees
- Universities and other higher education institutions (applying on behalf of a consortium),
- All legal persons that contributes directly and actively to the delivery of the Joint Master Degree (e.g. SMEs, chamber of commerce, trade union, foundation, NGO, …)
Strategic Partnerships, Knowledge Alliances and Sector Skills Alliances:
- All legal persons (e.g. higher education institution, SMEs, chamber of commerce, trade union, foundation, NGO, cultural organisation, library, museum, …)
European sport events
- All legal persons active in the field of sport, established in a Programme Country.
Employment and Social Innovation
Employment and Social Innovation (EaSI) programme promotes a high level of quality and sustainable employment, guaranteeing adequate and decent social protection, combating social exclusion and poverty, and improving working conditions.
Type of tourism-related actions eligible for funding:
- Progress supports analytical work useful for policy-making, social innovation and social policy experimentation.
- Eures supports workers' mobility and helps companies recruiting in another European country via targeted mobility schemes. Besides job matching and job placement support, these schemes may cover part of the SMEs costs of training newly-recruited workers and helping them settle in. They may also help job-seekers to pay for interview trip and/or moving abroad to take up a new job.
- Microfinance Facility supports the setting up or development of small businesses, including for investment, leasing, and working capital needs, as well as the acquisition of licenses and other start-up costs. Financing cannot be used to cover credit lines such as overdrafts or shortterm revolving facilities.
- Social Entrepreneurship supports the development of social enterprises, in particular by facilitating access to finance.
Who can apply within the tourism sector?
Progress:
- Higher education institutions (Universities …) and research institutes,
- Public authorities - Employment services
- Social partners
- Experts in evaluation and in impact assessment
Eures:
- Public authorities - Employment services
- Jobseekers (EU nationals and legally living in an EU country)
- Enterprises - SMEs
Microfinance Facility
- Enterprises – Micro-entrepreneurs
- Individuals
Social Entrepreneurship
- Enterprises - Social enterprises
Links
Guide on EU funding for the tourism sector
Photo credit: Hotel St. George Milano / Foter
