We hope the mentioned good practice case will encourage other governments and policymakers to do the same in their respective countries. Exhibitions and trade shows are the fastest of fast-tracks to economic recovery once the coronavirus crisis has passed and will deliver the best return on investment now. We sincerely thank UFI, EEIA, and EMECA for providing valuable information.
CASE STUDY: DENMARK
Denmark was one of the most aiding countries when it came to the meetings and exhibitions industry. Their financial aid helped the industry persevere.
EMERGENCY HELP
Expenditure measures:
On 12 March 2020, a Danish aid was launched to compensate organisers for the damage suffered due to the cancellation of large events with more than 1,000 participants or targeted at designated risk groups.
Measures related to public guarantees:
On 3 April 2020, a Danish State loan facility in support of the Travel Guarantee Fund (“Rejsegarantifonden”). The loan aims to support the Travel Guarantee Fund, which provides reimbursement to travellers in case of travel cancellations. In particular, the measure covers travel packages that were cancelled due to the exceptional circumstances caused by the coronavirus outbreak and the subsequent travel restrictions imposed by the Danish Government. It aims to ensure liquidity for travel organisers and the quickest possible refunds or reimbursements to travellers.
RESTART HELP
Expenditure measures:
On 14 July 2020, under EU State aid rules, a DKK 1.1 billion (approximately €148 million) Danish scheme was introduced to compensate damages suffered by companies whose activities are still subject to the restrictive measures implemented by the Danish Government to limit the spread of the coronavirus, while the rest of the economy is progressively reopening. The scheme will be open to companies that are still forbidden to carry out their activities and to suppliers of goods and services for events that have been cancelled, because of these measures. Under the scheme, such companies, which have a documented decline in turnover of more than 35% because of the coronavirus outbreak, will be entitled to compensation for the damage they suffer. This will be applicable for the period between 8 July to 31 August 2020 compared to a reference period before the coronavirus outbreak. The maximum aid amount per company is DKK 60 million (approximately €8 million).
Under EU State aid rules, a DKK 1.1 billion (approximately €148 million) Danish scheme to compensate damages suffered by companies in the tourism and travel-related sectors. The scheme will be open to companies active in those sectors and whose activities are still affected by previous border closure and travel restrictions that have now been lifted, or by the remaining border and travel-related measures implemented by the Danish government to limit the spread of the virus. Under the scheme, such companies, which have a documented decline in turnover of more than 35% because of the coronavirus outbreak, will be entitled to compensation for the damage they suffer. This will be applicable for the period between 8 July to 31 August 2020 compared to a reference period before the coronavirus outbreak.
RECOVERY HELP
Expenditure measures:
On 27 November, the Commission approved a €107 million Danish scheme, as well as the extension of a previously approved Danish measure, to help companies affected by the coronavirus outbreak. The support was earmarked to help businesses cover from 75% to 90% of employee salary costs. The first scheme, with a budget of approximately €107 million, is open to companies affected by local restrictions imposed to contain the spread of a specific coronavirus variant that originated from mink. Both schemes aim to help the beneficiaries address liquidity needs and pay salaries, to avoid lay-offs and continue operating.
On 22 December, the Commission approved a €94 million Danish umbrella scheme to support the uncovered fixed costs of companies affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, is open to companies active in all sectors except for the financial one.
To find out more about Denmark’s aid scheme, click here.
