ESP allocates Nu 844 mn to hotels for the 4 percent subsidy

2026-03-09 - 09:24

The Government is set to spend approximately Nu. 844 million to provide a one-year 4% interest subsidy under the Economic Stimulus Programme (ESP) for the hotel sector. Tashi Wangmo, Secretary of the Ministry of Industry, Commerce and Employment (MoICE), said the Ministry is working closely with the Royal Monetary Authority (RMA) and financial institutions to ensure the framework is implemented smoothly and reaches all eligible hotels without operational complications. She said, “As directed by the Cabinet, the goal is to maintain a simple, transparent, and easy-to-administer framework, given that this is a one-year targeted support measure. The detailed operational guidelines are in the final stage of endorsement.” Once approved, RMA will communicate the framework to banks, which will then notify eligible hotel clients on how the subsidy will be applied. Currently, around 537 hotels, primarily 4-star and below, are expected to qualify for the subsidy, though the final number may vary slightly after bank-level verification. The secretary said, “The intent is to provide targeted financial relief to the hotel sector, which continues to face liquidity pressures as tourism recovery stabilises, while ensuring the support reaches establishments that need it most.” Ugyen Hotel in Babesa said, “ We are not sure when the rollout of the ESP subsidy will begin and we weren’t told of anything going on or coming soon. I cannot speak for other hoteliers, but for me, since there are talks of an ESP Subsidy and on 1% interest decrease from the banks, I am relieved.” Once the operational guidelines are issued, the subsidy will be applied directly through the banks to eligible hotel loans.