Travel agencies were hit hard during the pandemic. SUR

Travel agencies can apply for financial aid to reduce Covid-19 pandemic debts

The Junta de Andalucía has opened a one-month period to apply for the subsidies

Pilar Martínez

Malaga

Friday, 5 May 2023, 15:00

Travel agencies impacted by the pandemic will be given financial aid and have one month to submit their applications.

The travel sector was one of the hardest hit during Covid-19. As countries closed their borders, the impact of the crisis was prolonged and led to many small businesses closing, or still managing debts today.

The official gazette of the Junta de Andalucía (BOJA) introduced measures to offer financial aid in a bid to help travel agencies bounce back.

Interested agencies have one month to submit their applications, which will give them access to subsidies to reduce short-term debt, provide the expenses for business operations such as the payment of goods or raw materials, labour, stocks or overheads. The money cannot be used to finance long-term investments.

The maximum amount would depend on the number of employees in the respective agency who were registered with the social security system on 13 March, 2020. Financial aid for an agency without employees would be about 3,000 euros, it would be 10,000 euros for an agency with one to nine employees, and 20,000 for a business with ten or more employees.

The department of tourism said the subsidies would be financed by the European Union from the European Regional Development Fund.

The amount of the aid must not exceed the liquidity needs of the company. Liquidity needs are determined by the decrease in turnover produced in 2021, with respect to the financial year 2019.