Gov’t extends payment of subsidies for opening new hotels until end of 2026

As Spot wrote earlier, Shavkat Mirziyoyev approved a new package of measures to support the tourism industry. It includes subsidies for tour operators and tax incentives.

The decree also extends the program to subsidize the construction and equipping of new hotels, the Tourism Committee said. It started back in 2019, and two years later, it was decided to expand it until the end of 2023.

Now one can receive money for renting a hotel until December 31, 2026, if it has a category of at least three stars and at least 5 floors. At the same time, the minimum number of rooms for receiving payments has become higher:

•  40 million soums for a room in hotels with a 3* category for 60 or more rooms (previously – 50);
•  65 million soums per room in hotels with a category of 4* or 5* for 120 or more rooms (previously – 100).

If there are no star-rated accommodations in the city or district, the subsidy will increase by 50%. For the first three hotels with 3*, it will amount to 60 million soums per room, for the first two hotels with 4* or 5* – 97.5 million soums per room.

For the same period, the compensation of part of the costs for the purchase of prestigious hotel franchises is extended. A resident company using a brand from the global top 50 (chain brand from the TOP-5) will receive money from the budget to cover royalties (deductions to the brand owner).

Payments can be received annually for three years from the date of entry into force of the franchise agreement:

•  $200 per room – for a hotel with 3*;
•  $400 per room – for a hotel with 4*;
•  $600 per room – for a hotel with 5*.

In addition, until January 1, 2025, hotels without a “star” category, upon receipt of a certificate of 3 stars or more, will be reimbursed for the costs of its registration.

In Karakalpakstan and the regions, it was instructed to put up for online auction at least 15 sites for the construction of hotels. For hotel projects in which $10 million or more is invested, engineering communications will be provided at public expense.