Loans to brighten up fading hotels

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BENIDORM LANDMARK: Don Pancho is one of the hotels carrying out upgrades.

The government and Ministry of Tourism have agreed to set up a line of credit to help establishments renovate and improve their infrastructure in Benidorm and other tourist towns in the province.

 A sum of €270 million is available for the scheme. Projects must be submitted before December 17. Loans will be made available of up to €25 million for municipalities and up to €1 million for private companies. 

The scheme was set up after research found that over 70 per cent of the hotels on the Costa Blanca were built before 1980 and are in danger of becoming outdated. The big boom in hotel construction occurred during the 1960s.

The credit terms are more favourable than those offered by conventional banks, with interest rates of between 4.4 and 6.8 per cent for periods of between three and 15 years. 

Improvement projects are intended to help the mature tourism establishments bring their business into line with the times, introducing for instance solar energy to enable them to become more self-sufficient, sustainable and economic.

Currently in Valencia and Benidorm, which is widely known as the tourist capital of the Costa Blanca, 46 hotels have closed for the winter period until March 2016. 

Nearly half of those have closed in order to make reforms and renovations including landmarks such as the Hotel Don Pancho, Dalmatas and el Orange, all of which date from the 1970s.

As for public institutions, the construction, renovation, expansion and improvement of public infrastructure is just as important to renew the image and improve the touristic offer. 

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