Minister of Agriculture, Adrian Oros, has decided to remove guesthouses from rural business funding for the next 2 years. He claims that many guesthouses built with European funds were taken out of the tourism circuit and converted into residential homes.
In following this decision, the amount allocated to non-agricultural projects for the 2021-2022 period has been halved to EUR 150 million.
In the last six years, nearly 1,000 Romanians have built guesthouses in villages with picturesque landscapes, from mountains, hills, or plains.
In the 2014-2020 period, 900 projects were won through the NRDP (PNDR) using European funds, through which agritourism guesthouses were either established or expanded. The estimated value was EUR 112 million. Following inspections carried out by the Ministry of Agriculture, it was found that many of these guesthouses no longer operated and were transformed into residential homes.
In the 2021-2022 period, which will transition to the 2021-2027 financial cycle, guesthouses will be excluded from funding. However, projects for the modernization of existing ones remain eligible, but with a halved budget: from EUR 263 million to EUR 150 million.
The Minister of Agriculture specified, however, that guesthouses will be reintroduced for funding starting in 2023, with a redefinition of the funding conditions.
Frequently Asked Questions
Why was funding for new guesthouses suspended?
The decision was made because many guesthouses built with European funds were taken out of the tourism circuit and converted into private residences.
Can existing guesthouses still be modernized?
Yes, projects for modernizing existing guesthouses remain eligible, though the total budget for non-agricultural projects has been reduced to EUR 150 million.
When will guesthouses become eligible for funding again?
The Minister of Agriculture stated that guesthouses will be reintroduced for funding starting in 2023, with redefined eligibility conditions.