1. State aid to tourism: Overview of the rules
Conference on State aid Law
Brno, 18 May 2017
Disclaimer: the views expressed are those of the speaker only and cannot be regarded as stating an official position of the European Commission
Graça da Costa
Senior Expert
State aid strategy
DG Competition

2. Index Introduction Public financing of tourism Case experience
Instances where State aid is not involved
Instances where there is State aid but there is no need to notify
Case experience

3. Introduction

4. Multiple activities-multiple rules…
"Tourism" is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours"
Multiple directly/indirectly related industries and activities: accommodation (hotels resorts); travel agency; reservation services; tourism promotion; entertainment activities (parks); cultural activities (museums, theatres); sports activities; transport activities (air transport, cruises)….
Not possible to have one single set of State aid rules …but many possibilities of public financing in compliance with the rules
Cathedral of St. Peter and St. Paul in Brno. Source: Flickr

5. Instances where there is no State aid
1. No economic activity
2. No effect on trade between Member States
3. No advantage
Source: Flickr

6. 1. No economic activity
Notion of economic activity: offering goods or services on the market
If activities not carried out against remuneration : no economic activity – no aid
If the State fulfils a genuine public task and responsibility: no economic activity– no aid.
Source: Flickr

7. 2. No economic activity- examples
Non-income generating tourism facilities, : information centres and other welcoming facilities, public parks, shelters and observation points, picnic areas to be used free of charge, nature paths including signage, piers, observation posts… Distribution of touristic information materials free of charge: brochures, maps, train and bus timetables Free visits or tours General destination marketing: image promotion of a region (tv spot, website) …but should not include advertising or booking facilities that are typically economic (e.g identifying specific beneficiaries) Culture, heritage conservation and nature conservation: if not organized in a commercial way (e.g. free of charge or not primarily financed by user fees
Source: Flickr

8. 3. No economic activity- examples (cont)
If the principle of ancillary activity applies (article 207 of NOA) or if public financing provided to customary amenities (coffee shops, souvenir shops) of activities almost exclusively used for non-economic activity = overall activity non-economic.
Source: Flickr

9. No effect on trade between Member States
Case-by-case analysis:
- limited area
- unlikely to attract customers from another Member State (predominance of local users; similar offers in other Member States)
- the aid is unlikely to have more than a marginal effect on the conditions of cross-border investments or establishment (e.g. for linguistic reasons)
Support granted under de minimis Regulation (not more than EUR to a single undertaking over 3 years)
Source: Flickr

10. No advantage
Investments in compliance with the Market Economy Investor Principle(MEIP)
- pari passu with commercial operators
- (ex-ante) business plan showing adequate return on investment.
Ex: the public authority co-invests under the same terms and conditions with a private operator in an accommodation facility or holiday booking platform
Entrustment of SGEI in line with Altmark criteria:
Ex: support for accommodation facilities aimed at hosting tourists with modest income ?

11. Instances where there is State aid but no need to notify
If measure complying with GBER, such as:
Investment aid for local infrastructures up to EUR 10 million per project (Art.56) – provided all conditions are complied with, no additional "local" requirement
Aid for sport and multifunctional recreational infrastructures (Art 55) .Ex. SPA centre
Aid to SMEs (Arts 17-19) Ex. for participation in fairs
Aid for cultural activities (investment aid + operating aid )
Regional aid (Art. 14), Training aid (art 31)
If service qualifies as SGEI and measure can comply with SGEI Decision – state aid for the compensation of that SGEI up to EUR 15 million per year

12. Case practice
GBER schemes
Regional aid
Treaty

13. Thank you! Graça da Costa Senior Expert State aid strategy
DG Competition