The Welsh Government, in partnership with the Development Bank of Wales, has launched a new £50m fund, Wales Tourism Investment Fund (WTIF) which brings together both commercial and grant funding into one combined package of financial support to provide capital investment for the sector.
In order to maintain and develop Wales’ position in the hugely competitive global tourism market, we need to continue to invest in our tourism product. The key objective of the Fund will be to help finance capital investment in tourism projects which have the opportunity to create positive impact on growing the sector and the Welsh economy.
Purpose of fund
- To provide continued access to finance for tourism projects in Wales
- To support the transition of the tourism sector from grant reliance to commercial loan serviceability
- Allow public funding to be mobilised in an area that can create significant impact on the economy
- To be able to support potentially substantial strategic investments as required.
What will it fund?
- The new fund will provide patient capital to tourism businesses of between £100,000 and £5,000,000 for qualifying projects
- Repayment term is between 10-15 years, and can include seasonality payment breaks
- It will provide increased flexibility of funding
- Funding will be made available from the outset of a project and tranched through the development phase
- Commercial loan and qualifying grant payments will be blended in order to reduce the overall cost of the finance.
Who is eligible?
The fund comprises a mix of repayable and non-repayable finance, targeting eligible capital investment projects in the tourism sector in Wales. It can be used either to upgrade existing, or create new, high quality assets in the tourism sector.
In order to be considered for support from the Wales Tourism Investment Fund an applicant will need to:
- Commit to supporting the Welsh Government’s Prosperity for All strategy and demonstrate a commitment to the four requirements of the Economic Contract
- Be based in Wales and demonstrate how the project will stimulate growth in new and existing markets and create and/or safeguard jobs
- Demonstrate financial viability and repayment over the term of the funding package.
The fund includes a two stage application process. The first stage includes an Expression of Interest form and if successful at this stage, the business will then be invited to make a full application. Frequently Asked Questions are also available.
If you are interested in receiving more information on the WTIF, please email [email protected] or call 0845 010 8020.