WB matching grant project gathers interest among SMEs in tourism
The World Bank funded project aimed at assisting the small and medium scale entrepreneurs (SMEs) in the tourism industry is gaining momentum as more applications were expected to be picked up by potential applicants within the next two weeks as the closing date nears.
Project Director A.B.M. Ashraff speaking with the Business Times said that the matching grant project which is outsourced to the People Bank was currently receiving applications and he had found a number of people to be interested in the project following the series of newspaper advertisements in the recent past by the Economic Development Ministry.
It was pointed out that around 1000 applications were being picked up by potential applicants for projects like vessel operations, boat parks and other areas stipulated under the grant.
In addition, at least 200 applicants had already submitted their proposals to the People’s Bank that would be responsible for short listing the applications.
With the closing date scheduled for July 31 the People’s Bank would shortlist at least 1500 SMEs, Mr. Ashraff said.
Meanwhile, home stays applicants would be also allowed to submit their proposals upon gaining approval for licences from the Tourism Development Authority, he explained.
The project director observed that with a number of locals looking at opening up their homes to travellers, the advertisements in the newspapers have attracted “plenty” of applicants for home stays.
He noted that the World Bank funded grant would aid in popularizing the home stays project as well as encourage people to become increasingly engaged in the tourism industry.
This World Bank US$16 million (Rs. 2 billion) matching grant project was long overdue mooted around 2007/8 but which finally gained approval in 2010 was fully implemented only this year.
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.
Payment of the total amounts allocated for such assistance to these SME projects would be released in four monthly instalments only after at least 25 per cent of the work has been carried out by the entrepreneurs.
Categories identified are restaurants, tea shops, home-stays, gift and souvenir craftsmen, folk arts, greening hotels, refurbishments not constructions; improvement of human resources through trade associations to train staff and promotional activities like producing brochures. In addition, under the new enterprises the project targets air and land based adventure activities; vessel purchases for operations like whale and dolphin watching and other similar activities.The matching grant scheme project would conclude by September 2014.
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