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Support for Tourism Businesses

INTRODUCTION

If you are an established tourism businessor are thinking of starting a tourism business,Invest NI can provide you with advice and arange of programmes and financial supportto help you grow and develop your business.In the first instance and for further information please contact the Invest NI tourismteam on 028 9069 8509 or via the Invest NI website at www.investni.com oremail [email protected]

If your business is, or will be, certified bythe Northern Ireland Tourist Board (NITB)as a provider of tourist accommodation,or if your business has commercial revenuestreams from the supply of a priority tourismproduct or service, Invest NI would like todiscuss with you what support is available.

To avail of support you will need tobe able to demonstrate that yourbusiness has a clearly defined strategyfor growth or product repositioningthrough tourism, and that it seeks toestablish a competitive advantagethrough the creation or development ofa quality product delivered tointernational standards.

HOW WE WILL SUPPORT YOUWe will assign to you a Client Executive whowill have the responsibility to ensure that youreceive efficient and effective support.

The Client Executive will be your singlepoint of contact with Invest NI. It is theClient Executive’s responsibility to ensurethat in delivering support, appropriateInvest NI staff, and its range of productsand services, are brought together to deliveran effective solution to your business need.

OUR SUPPORT FOR YOUIn supporting you we will adopt a twintrack approach with advice and supportfor strategic and process improvement(Capability) and financial support forproduct development (Capital).

CAPABILITY SUPPORTOur extensive range of capabilityprogrammes is available to you. As anexample, we can help you by providing adviceon a business problem, information on bestpractice, a structured programme or evenfinancial support to help improve yourbusiness processes, skills development andtraining, marketing, E-enablement,knowledge management or even energyefficiency and environmental practices.

CAPITAL SUPPORTIf you are a tourist accommodation businesswith a clearly defined strategy for growth,financial assistance may be available to helpyou start, expand or improve the physicalquality and capacity of your business. To availof support, you must be able to clearlydemonstrate how your project satisfies theGeneral Principles for Support (see Annex A)and how it satisfies the criteria guidelines for itsNITB certification category (see Annexes B to F).

TYPE OF FINANCIAL SUPPORTWe may offer various grant structures forcapital projects, in addition to debt and equity.We will explore with you your most efficientcapital structure, based on cash flow patterns,expenditure needs over time and financingability. We can provide advice on how privatesector funding, bank finance and equity fundingcan be used to meet your financialrequirements.

SUMMARYIf you are a tourist accommodation business,both capability and capital support maybe available. If you are a priority touristbusiness, but not in the accommodationsector, only capability support is available toyou from Invest NI. Capital Support mayhowever be available from the NITB. Furtherinformation on the current NITB capital

BUSINESS DEVELOPMENT SOLUTIONS

CAPABILITY CAPITAL

New starts

ExistingAccommodation Businesses

“Other Tourism" Businesses

KEY

support policy is available from the NITB.Telephone 028 9023 1221 or [email protected]

YES

NO

DEPENDENT UPON BUSINESS CASE / OR ACCOMMODATION CATEGORY

mailto:[email protected]

HOW DO I GET HELP?For further information please contact the Invest NI tourism team on 028 9069 8509or via the Invest NI website at www.investni.com or email [email protected]

Our Tourism Client Officers may be able to supply you with all the help and information thatyou require. If not, they will refer your enquiry to an Invest NI Client Executive.

The Client Executive will arrange to discuss with you your business needs and to consider howbest we can support your business. In assessing your business needs your Client Executive willapply a structured and analytical approach. Using business diagnostic and competitiveassessment tools, your business will be submitted to a competitive assessment analysis. Theresults of the analysis, including comparative benchmark information willbe made available to you and if appropriate, used to develop an action plan to address anybusiness issues or process weaknesses identified.

Following on from the analysis you may be asked to submit further information or a business planto allow your business proposal to be fully assessed and appraised. At all stages in the processyour Client Executive will ensure that you are fully informed of information required and progressbeing made.

CAPITAL SUPPORT FORACCOMMODATION DEVELOPMENTThe priorities for financialassistance will be reviewed on anannual basis, agreed with theNorthern Ireland Tourist Board andpublished in February of each yearfor the forthcoming financial year.

GENERAL PRINCIPLES

QUALITYInvest NI is committed to helpingtourism businesses improve productquality, business processes and theircapability to compete competitivelyin the nationaland global market place. Invest NItherefore will only supportpromoters of projects who arecustomer focused, market drivenand recognise the need for highquality, excellence and a personalapproach in all that they do.

MARKETOn project completion the businessmust be clearly differentiated fromexisting and competing products, beable to demonstrate a Unique SellingPoint capable of attracting andholding tourists and be an exemplarof quality business practice.

DISPLACEMENTThe business must be able todemonstrate that it has a clearlydefined strategy for growth or productrepositioning through tourism.Projects that simply displace visitorsfrom similar projects will not beconsidered for support.

The onus is on the promoter toprove that market need exists andthat it will not displace businessfrom other similar projects.The proposed marketing activity,target markets and segments willtherefore be critically reviewed.

ACCESSIBILITYInvest NI is committed to thedevelopment of facilities forvisitors with disabilities. In order tofacilitate compliance with theDisability Discrimination Act,unless it can be demonstrated thatit is wholly unreasonable to do so,completed projects must obtain atleast Category One under theNational Accessible Scheme.

ENVIRONMENTAL SUSTAINABILITYInvest NI will only support projectsthat are at least environmentallyneutral in terms of land or streetscapeand their impact on the localcommunity. Projects should ideallyhave a positive impact on theenvironment and add to the qualityof life enjoyed by the local community.

SUPPORT FOR HOTELSIn recent years there has been avery substantial increase in theprovision of hotel accommodationwithin many areas of NorthernIreland, particularly in the cities ofBelfast and Londonderry. In Belfasthotels have been successfullydeveloped without public sectorassistance. Accordingly, in theBelfast area,(defined for this purpose as a radiusof 10 miles from Belfast CityCentre) no applications for financialassistance for new hoteldevelopments, including extensionsand upgrades etc to existingproperties will be accepted byInvest NI. However, for areas on theperiphery of the zone and withoutan existing hotel supply or areasdesignated as New Targeting SocialNeed (NTSN), or for hoteldevelopments capable ofgenerating their own supply frommarket segments not serviced byexisting hotels, Invest NI willconsider the merits of the proposedhotel project and assess its abilityto satisfy stated support policy.

NEW STARTSNew hotel developments offering atleast 30 double/family rooms,achieving at least 3-star classificationunder the Northern Ireland TouristBoard’s (NITB) ClassificationScheme and Category One underthe National Accessible Scheme willbe considered for support.The hotel must be professionallymanaged and ideally marketedand branded through a knownproduct brand.

In areas or circumstances wherethere is a compelling tourism needor a proposal to develop a “unique”small tourism focused hotel(between 15 to 30 double rooms)Invest NI will accept an applicationand Business Plan for assessmentagainst stated support policy and/orappraisal against standard criteria.

EXISTING PROPERTIESProjects involving the expansion andimprovement of existing hotels maybe considered. Consideration will begiven to supporting the addition offacilities necessary to reposition thehotel to attract and service visitors.

It is not essential that thedevelopment should involveadditional ensuite bedroomaccommodation. However,support will only be considered if,on completion of the project, thehotel will have all bedroomswith ensuite facilities, be capableof achieving at least NITB 3-starclassification and Category Oneunder the National AccessibleScheme. For unclassified, 1- or2-star hotels under the NITBClassification Scheme,consideration will be given toproviding assistance to improveaccommodation and guestfacilities for visitors. For example,support will be considered for:

• improvements to existingensuite bedrooms;

• the upgrading of existingbedrooms toinclude ensuites;

• improvements andrefurbishments to guestlounge and restaurant areas;

• improvements to kitchenfacilities etc.

It will be acceptable for thenumber of guest bedrooms toreduce as the result of a project.New bedrooms built to replacelost rooms or bedrooms to expandthe business will be eligible forassistance. On project completionthe hotel should be capable ofachieving at least an incrementalincrease in its classification underthe NITB Scheme and Category Oneunder the National Accessible Scheme.

SUPPORT FOR GUESTHOUSES/BED AND BREAKFASTSNEW STARTSNew developments may beconsidered only in the followingspecific circumstances:

High quality country “type” houseaccommodation in existinghabitable properties offeringtypically 6-12 ensuite bedrooms,the service of good food andwith on-site or nearby “tourism”activities or products. Promotersmust be able to demonstrate thatthe business will be professionallymanaged either by the owners oremployed staff. Properties mustachieve the highest classificationunder the Northern Ireland TouristBoard’s (NITB) GuesthouseClassification Scheme and atleast Category One under theNational Accessible Scheme.

In traditional seaside resorttowns where due to the inabilityof many existing properties toachieve appropriate classificationor to meet legislative standardsaccommodation is being lost,support for the developmentof high quality guesthouses on“brown field sites” may beconsidered. On completion, theguesthouse must be able tooffer between 6 and 12 ensuitebedrooms and serve good food.The promoters must be able todemonstrate that the businesswill be professionally managedeither by the owners or employedstaff. Properties must achieve thehighest classification under theNITB’s Guesthouse ClassificationScheme and at least Category Oneunder the National AccessibleScheme.

EXISTING BUSINESSESApplicants must hold a currentNITB Certificate and haveoperated the property, or anotherproperty registered with the NITB,satisfactorily for at least one year.The property must have a minimumof two letting bedrooms in a bed& breakfast and three lettingrooms in a guesthouse.

The main priority for financialassistance will be the provisionof additional ensuite twin, doubleand family guest bedrooms orensuites to existing bedrooms.Assistance will only be availableup to a maximum of 15 rooms.If required a reduction of 50%in the total number of roomswill be acceptable, provided thatthe overall number of bedroomsdoes not fall below the minimumrequired for Guesthouse andBed & Breakfast certification. Oncompletion the premises shouldbe capable of achievingCategory One under theNational Accessible Scheme.

Financial assistance forimprovements includingrefurbishment to guest andkitchen areas, and the provisionof on-site facilities will only beconsidered when the provisionof ensuites has been satisfactorily

addressed.satisfactorily addressed.

SUPPORT FORLICENSED GUEST INNSNEW STARTSProjects that aim to provide3-12 double ensuite bedroomsattached to existing pubsand licensed restaurants willbe considered for support.The business must be ableto demonstrate that on completionit will be professionally managed andserve good food. The product shouldon completion achieveat least 3-star under theNorthern Ireland Tourist Board’sClassification Scheme forGuesthouses/ Licensed Guest Innsand Category One under theNational Accessible Scheme.

EXISTING BUSINESSESFinancial assistance for improvementsincluding refurbishment to guest andkitchen areas, and the provision ofon-site facilitieswill be considered whenthe provision of ensuites has beensatisfactorily addressed.

SUPPORT FOR SELF-CATERING

NEW STARTSConversion of existing propertiesresulting in a minimum of twoself-catering units will be consideredfor support. On completion, suchdevelopments must largely maintainthe appearance and size of theexisting buildings and be capableof attaining a minimum NorthernIreland Tourist Board (NITB) 4-starclassification and, for one unit,Category One under the NationalAccessible Scheme. The propertiesmust be marketed through arecognised self-catering organisation.Businesses will also need to be ableto demonstrate the potential forgrowth through expansion ofthe accommodation base or theaddition of further facilitiesto extend the season.

Funding may also be available forthe conversion of an existingproperty into a high quality singlestand-alone unit located in arecognised tourist area andtargeting niche market segments orproducts associated with the areaand identified as a priority by theNITB. On completion the unitmust be capable of attaining a NITB5-star classification and CategoryOne under the National AccessibleScheme. The business must beprofessionally managed andmarketed by an experienced tourismoperator using e commerce andself-catering organisations withnational and international distributionchannels. Businesses will also needto be able to demonstrate thepotential for growth through thedevelopment of further similarhigh quality accommodation.

For new build, funding will beconsidered for single sitedevelopments with a minimumof four units. The building designshould be fully sympathetic withthe traditional architecture of thearea. Ideally the development

should consist of a mixture ofunit sizes in terms of bedrooms.On completion the units must becapable of attaining a minimumNITB 4-star classification and,for one unit, Category One underthe National Accessible Scheme.The properties must be marketedthrough a recognised self-cateringorganisation. Businesses will alsoneed to be able to demonstrate thepotential for growth throughexpansion of the accommodationbase or the addition of furtherfacilities to extend the season.

EXISTING BUSINESSESFor existing businesses that arewell run and professionallymanaged with a minimum oftwo self-catering units locatedon a single site, financial supportwill be available to assist withexpansion and growth. Supportwill be considered for the provisionof additional units and/or thedevelopment of facilities aimed atoffering visitors (especially families)a varied holiday experience. The unitssupported must be capableof attaining a minimum NITB 4-starclassification and, for one unit,Category One under the NationalAccessible Scheme. On projectcompletion, existing units mustbe classified by the NITB atminimum of 3-star standard.For well run and professionallymanaged self catering operatorswith a minimum of three unitscertified by the NITB for at leastfive years, financial assistance forupgrading may be available. Oncompletion all self-catering unitsmust be of a comparable standardand classified by the NITB to aminimum 3-star standard and atleast one unit must be certified asCategory One under the NationalAccessible Scheme. The cost of theproposed works must exceed atleast £20,000.

SUPPORT FOR HOSTELSNEW STARTSIn line with market trends the hostelmust provide 50 bed spacesin non-dormitory style accommodation.Strong consideration should begiven to the provision of ensuiteaccommodation.

EXISTING BUSINESSESFor hostels certified by the NITB,support will be considered for:• improvements to existing

ensuite bedrooms;• the upgrading of existing

bedrooms to include ensuites;• improvements and refurbishments

to guest lounges;• improvements to kitchen facilities

and guest facilities such as wet /dry rooms / storage facilities andsmall “conference” or groupmeeting rooms.

It will be acceptable for the numberof bedrooms to reduce as the resultof a project. New bedrooms built toreplace lost rooms or bedrooms toexpand the business will be eligiblefor assistance.

Financial assistance forimprovements, includingrefurbishment to guest andkitchen areas, and the provisionof on-site facilities will only beconsidered when the provisionof ensuites has been satisfactorilyaddressed.

On completion the hostel mustbe certified as Category One underthe National Accessible Scheme.

TEL: 028 9023 9090FAX: 028 9043 6536

www.investni.comPhotography courtesy of the Northern Ireland Tourist Board, the Belfast Visitor and Convention Bureau and the Derry Visitor and Convention Bureau

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