The Tourism Plan was put in place on May 14 to support the sector. Here is a summary of the different tools available to tourism companies to recover from the crisis.
Bpifrance is supporting the rebound in tourism in France. On May 14, 2020, Bpifrance and the in collaboration with the Ministry of the Economy, Finance and Action and Public Accounts, and the regions developed a platform to support actors in the sector. Each company can thus identify the various aids from which it can benefit.
Bpifrance finances and supports the sector on the one hand, and intervenes in equity and quasi-equity on the other hand, with tourist operators, very small businesses up to large groups. “If we want France to remain ‘THE’ number one destination in the world, we will be there to support the tourism sector,” says Pedro Novo, Executive Director in charge of Export and coordinator of the Tourism Plan.
Bpifrance, in partnership with the, has developed the Tourism loan to meet one-off cash requirements linked to the current situation. The aid can range from 50,000 to 2 million euros, over a period of 2 to 12 years, for the companies concerned:
– VSEs, SMEs and ETIs according to the European definition, located in metropolitan France and in the DROM / COM ;
– having at least 24 months of balance sheet;
– being in the tourism sector (accommodation, catering, leisure, travel and tourist transport, heritage, events, etc.).
Companies in difficulty within the meaning of European regulations cannot access the tourism loan
As part of the support plan for the tourism sector, a Season EMP was created in order to extend the ELP’s eligibility criteria to the tourism sector. “The limit of the amount is calculated on the three best months of the beneficiary’s activity rather than on the 25% of the turnover excluding tax of the current EMP”, specifies Marie-Claire Dur, head of development at Fragrance. “The Season EMP cap will be increased to the best 3 months of 2019 – which for seasonal businesses makes a big difference,” said the official press release.
Fragrance also offers various funds to support tourism companies during the crisis and encourage them to innovate. Two funds exist depending on the size of the company:
FAST offers a financing solution of an amount that can range from 50,000 to 400,000 euros, in quasi-equity, which can be mobilized at short notice for companies that meet the following criteria:
– Tourism operators among these 5 components: accommodation , catering, tour operators, leisure players, solutions for tourism.
– Company incorporated as an SA or SAS and having at least 3 years of existence (possible exceptions).
– Minimum turnover of 0.5 M €.
– Healthy company before the health crisis, positive EBITDA (excluding 2020).
Companies in which Bpifrance, or a fund managed by Bpifrance, is already an investor will not be able to benefit from FAST.
The FIT 2 aims to finance the redeployment of tourism companies which have been faced with a sudden shutdown following the impact of the Covid-19 health crisis but whose fundamentals remain sustainable over the long term. It supports SMEs and small mid-cap companies, by offering them a financing solution with equity and quasi-equity that can be mobilized within short deadlines. Investment tickets, ranging from 400,000 to 7 million euros can be issued to companies that meet the following criteria:
– Company incorporated as an SA or SAS with at least 3 years of existence.
– Minimum turnover of € 1 million for investment tickets greater than € 0.4 million.
– Minimum turnover of 3 M € for investment tickets greater than 1 M €.
– Healthy company with positive EBITDA before the Covid-19 crisis and whose fundamentals remain sustainable over the long term.
– Tourism operators: accommodation, catering, tour operators, cruise lines, leisure players, solutions for tourism.
Bpifrance is the bank for entrepreneurs. Beyond the financial aspects, she seeks to support her clients in the success of their entrepreneurial projects. “It is part of our identity and our general interest mission,” says Marguerite Descamps, Support Development Officer at Bpifrance. Here are the various tools put in place to support you:
– To take stock of the impact of the health crisis on your business, Bpifrance has developed Autodiag Re bond.
– Rebound E-Training
– The 360 Re bond Tourism entry module, operated by a team formed by a Fragrance Consulting Manager and one of the independent consultants from the Bpifrance pool, allows you to track down opportunities and re-clarify your business plan.
– The Tourism & Leisure Promotion 2 Accelerator which will be launched in December 2020.