The majority of hotel owners in Serbia are still examining the financial possibilities for renovating or expanding capacities, with state aid covering 20 percent of the investment value, in order to provide accommodation for visitors of the specialized international exhibition “Expo 2027.”
The director of the Hilton Hotel in Belgrade, Aleksandar Vasilijević, told the Beta news agency that the decision on expansion or reconstruction of capacities is not straightforward because, in addition to financial costs, it requires an analysis of whether they can be filled after the exhibition concludes.
“We are considering the construction of new capacities. The state subsidy is attractive, but within a specific timeframe until the end of 2026, we need to secure the location, all permits, and a project that takes several years to complete,” said Vasilijević.
According to the director Dragan Živković, the “Mažestik” Hotel in Belgrade will likely apply for state incentives only for adaptation since there is no space for expansion.
“The ‘Mažestik’ building is a protected cultural monument, and we cannot expand it,” said Živković.
Marko Ilić, the director of the “Falkenštajner” Hotel in Belgrade, emphasized that hotel owners have not yet made any decisions.
“The situation is being analyzed, and the deadline is by the end of the year,” said Ilić.
Đorđe Makuljević, the President of the Tourism Industry Cluster of Vrnjačka Banja, stated that the Regulation on the allocation of funds for the construction and reconstruction of hotel facilities has been met with great interest.
“Existing hotels were mostly renovated five or six years ago, and the ultimate deadline for the ‘refreshing’ of the interior is seven years, so the subsidy comes at the right time for hoteliers to renew their facilities, and investors to have support for the construction of new ones,” said Makuljević.
He added that Vrnjačka Banja, once the Morava Corridor is completed in 2025, will be an hour and a half drive from the Surčin airport, making it interesting for guests.
The Regulation on amendments and supplements to the Regulation determining the criteria for granting incentives to attract direct investments in the sector of hotel accommodation services envisages state aid of 20 percent of the investment value for the construction of new and expansion of existing hotels in spa resorts and the Belgrade region to accommodate guests of the international Expo 2027 exhibition.
The state will allocate funds for investment projects in spa and climate resorts with a minimum value of two million euros, ensuring the employment of at least 30 new permanent employees.
Funds will also be allocated for investment projects in the Belgrade region for the construction of hotels categorized with three stars or more, featuring a minimum of 50 accommodation units, with a minimum investment value of five million euros.
The state will assist hoteliers in the Belgrade region planning the reconstruction or expansion of hotels categorized with three stars or more, having a minimum of 50 accommodation units, and a minimum investment value of two million euros.
Applications for state aid are possible until the end of 2024.
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