On 20th of July 2020 the Czech government approved a new program aiming to help Czech entrepreneurs to deal with the results of recent coronavirus pandemic, the so called COVID-Accommodation (COVID-Ubytování). The program is designed to help providers of accommodation survive the difficult situation, following after most of the accommodation facilities were compulsorily closed as a result of government anti-pandemic measures. The final goal of the project is to maintain the scope and quality of the provided services at the pre-pandemic level. Among recipients of this state support are not just owners of hotels, but also motels and similar enterprises, including private spa facilities. On the other hand, this program does not cover short-term accommodation leases such as Airbnb or similar. The Government reserved over CZK 4 billion for the Ministry of Regional Development to be used for this program.
Providers of accommodation will get an amount of money ranging from CZK 100 to 330 for every room and every night of the obligatory closure, i.e. for 72 days from 14th of March until 24th of May 2020. To determine the exact amount of aid to be received, the amount of stars and quality of the provided services will be taken into account. Four- and five-stars hotels and spas will get the full support in height of 330 CZK, lower class tourist camps and dormitories must settle for 100 CZK. The role plays also the fact, that the given facility has been operating continuously for last two years prior to the crisis. Facilities, that do not or not fully meet this condition will lose the whole amount of governmental support, or part of it.
The claim for this aid is subject to further conditions. The recipient of this subsidy shall not terminate his business for six months after receiving the subsidy. It is also necessary, that it had not been in bankruptcy, liquidation or insolvency for the last two years and that it did not have any arrears in regard to taxes and health insurance as of 14th of March 2020. By accepting this subsidy, the subject waives other possible compensations and already accepted subsidies lower this subsidy accordingly.
The Ministry of Regional Development will announce an invitation to sign for this subsidy sometime in August and publish an online-form for this purpose. The administrator of this program will be the Czech Investment Support Fund. The program will be launched just after notification to EU Commission.
For further information on this topic please feel free to contact:
JUDr. Monika Rutland, partner
rutland & partners, law-firm
Tel: +420 226 226 026