7 Steps to Secure Tourism Funding

How to Benefit from Tourism Support? Discover the 7 Essential Steps to Secure Funding from Portugal 2030 and Turismo de Portugal.

Classified as strategic for the competitiveness of the Portuguese economy and a sector in which the Government has been creating conditions to encourage investment, National Tourism in 2024 recorded an 8.8% growth in tourism revenue, 4% in overnight stays, and 6.3% in foreign guests, compared to the previous year.

Between the various funding lines from Turismo de Portugal and the Incentive Systems of Portugal 2030, there are several financial instruments available to investors in the Tourism sector. However, not all types of investment are eligible to benefit from this tourism support.

In this article, we have combined our many years of experience with our clients' success, and prepared an article that outlines the 7 steps to finance your tourism project.

Tourism Support Lines

In recent years, with the growth of Tourism in Portugal, investors in the sector have had access to various support and funding instruments that have significantly contributed to economic revitalisation, the promotion of sustainability, and the enhancement of territories. This support has played a fundamental role in transforming the national tourism offer, backing structural investments and stimulating growth in low-density areas.

Among the main support lines for Tourism in Portugal, the following stand out:

• LAQO – Support Line for the Qualification of the Offer, which finances refurbishment, innovation, and sustainability projects;
• PT2030 – SICE Productive Innovation, which aims to improve and strengthen productive capacities;
• Growing with Tourism Programme, focused on initiatives with social, cultural, and territorial impact, with special emphasis on local communities and the regeneration of endogenous resources.

Despite the variety of instruments available, not all tourism investments are eligible under these programmes. The absence of adequate licensing, a lack of differentiation, or a poorly structured business model are just three of the factors that can prevent funding approval.

Therefore, it is essential to understand in advance how to structure a business plan, what the eligibility requirements are for Tourism support in Portugal, and which mistakes to avoid before proceeding with any application.

7 Steps to Finance a Tourism Project 

How to structure a Tourism Investment Plan?

When structuring a tourism project with the aim of attracting public funding, you should pay attention to the different phases that require strategic actions:

1. Diagnosis and Framework 
Assess the implementation site, construction potential, and urban planning viability. Identify the most suitable type of project for the territory and verify the legal and technical requirements for tourism licensing.

2. Preliminary Feasibility Study
Validate the concept based on market data and competition. Ensure that the proposed layout reflects the desired functionalities (e.g., leisure and well-being areas, catering). Estimate costs realistically, distinguishing between construction work, equipment, and services.

3. Business Plan Development
Build a robust plan that supports the application and the investment. Substantiate revenue and expenses with sector benchmarks. Include operational scenarios, funding structure, and sensitivity analysis.

4. Application Preparation
Closely follow the specific requirements of each call for applications. Prepare all forms with technical accuracy and objective language. Whenever possible, liaise beforehand with Turismo de Portugal and other relevant bodies.

5. Execution and Monitoring
After approval, ensure compliance with the timeline, objectives, and commitments made. Guarantee good document management to facilitate audits, payment requests, and communication with managing authorities.

Seeking support for your tourism project: 5 questions you should ask

Before starting the application process, it is essential to answer these 5 key questions:

1. Have I submitted, or am I about to submit, the licensing application or prior notification for carrying out building works?
2. Do I have at least 20% to 30% of the total required investment in own capital?
3. Is the concept innovative compared to the existing offer, at least within a 30 km radius?
4. What is its contribution to job creation or local revitalisation?
5. Is the business plan substantiated by realistic and coherent data?

Answering “yes” to these questions is the first step to accessing tourism support in a structured and coherent manner.

If, on the other hand, the answer is “no” to one or more of these questions, it may be necessary to rethink the project, or develop it further before seeking funding.

How to know if your tourism project is eligible?

Programmes such as the Support Line for the Qualification of the Offer (LAQO) prioritise projects that promote environmental and social sustainability, or the refurbishment and repositioning of establishments. The PT2030 – SICE Productive Innovation promotes innovation projects aimed at increasing productive capacity. Meanwhile, the Growing with Tourism programme values social innovation and the creation of tourism networks in low-density territories.

Regardless of the incentive, a tourism project with eligibility potential is one that effectively contributes to the qualification of the national tourism offer, promoting:

• Job creation and retention of people in the territories;
• Environmental, economic, and social sustainability;
• Heritage rehabilitation, especially for buildings classified as being of national or municipal interest;
• Innovation and differentiation from the existing offer.

On the other hand, projects such as Local Accommodation (AL), without a direct impact on employment rates, or facilities without adequate licensing, are generally excluded.

Projects that do not contribute to the attractiveness, increased occupancy, and economic sustainability of the region are also not looked upon favourably, as the merit of the application is compromised.

What to do if your project is not eligible?

Not all projects fit within the existing support lines — and that does not mean they are not valid. In these cases, there are other ways to structure the investment:

• Revise the concept to align it with eligible categories;
• Explore alternative support, such as regional funding lines or instruments for youth entrepreneurship (if applicable);
• Consider mixed models, which incorporate differentiating and job-creating services;
• Wait for new programmes more suited to the project's profile to open.

If “waiting” doesn’t suit your entrepreneurial spirit and you intend to move forward with your project, there are strategies used by entrepreneurs in the sector who invest without resorting to these types of funds.

See here the three most common strategies used by investors in tourism projects.

How to secure support for your tourism project?

The best way to ensure the eligibility of your tourism project is to structure it with rigour and clarity from the initial phase, ensuring alignment with the specific criteria of the available programmes. These best practices increase the chances of project approval:

• Conduct a comparative analysis (benchmark) of the existing tourism offer in the region;
• Work with specialists in economic-financial viability, who thoroughly understand the merit criteria of Turismo de Portugal;
• Align the architectural layout with the project objectives, avoiding inconsistencies between the floor plan and planned services;
• Rehabilitate heritage sites, whenever possible;
• Submit a preliminary presentation of the project to Turismo de Portugal before the formal application, which can clarify doubts and prevent rejections.

Common mistakes that jeopardise support approval for tourism projects

Several tourism projects are rejected due to mistakes that could have been avoided with more careful analysis or proper technical guidance. The most common include:

• Absence of prior approval of the architectural project;
• Presenting a redundant tourism concept or one that does not differentiate itself from the existing offer;
• Failure to demonstrate real economic viability, with unrealistic costs and financial forecasts;
• Lack of consistency between investments, architectural project, and services (e.g., proposing investments in the construction of a spa or restaurant without them being included in the architectural layout).

These aspects, often underestimated, can compromise applications with potential. Mastery of the technical criteria and specific requirements of each support line can be the decisive factor between a rejected application and a funded project.

Three documents you need before applying for Tourism support

Is your project eligible? It's time to apply for tourism support; however, these are the three documents you must submit with your application.

• Architectural Project approved by the City Council/Local Authority, if necessary;
• Business Plan that justifies the economic-financial viability of the project;
• Quotes for the project. We recommend having at least three quotes per type of expenditure.

Now that you know if you can benefit from tourism support, it's time to learn about combined funding strategies and tax strategies that allow you to maximise your Investment.

Three investment strategies used by entrepreneurs in Tourism

Investing in Tourism can represent very high costs for the investor; however, there are strategies that entrepreneurs use to maximise the investment made.

1. Combine SICE Productive Innovation with LAQO: These two lines have the particularity of being usable individually or in combination. See how Productive Innovation and LAQO work.
2. Define a cohesive tax strategy: There are tax instruments that allow investors to recover up to 30% of the investments made in tourism. The Tax Regime for Investment Support (RFAI) is a tax benefit that allows a portion of investments made in productive activities to be deducted from Corporate Income Tax (IRC) liability, even if you do not yet have taxable income (profit) from your investment. For example, suppose you start your project in 2025 and plan to open for business in 2027; you can recover up to 30% of the investments made in the 2025 tax year and the 2026 tax year. These deductions take the form of a tax credit that can be used to deduct from IRC payable for 10 years or until it is exhausted. Learn how RFAI is applied in Tourism.  
3. Resort to Specialised Teams in Tourism Projects: Yunit Consulting, as a leading name in preparing applications for European Funds, has a specialised team for applications for Tourism support. For over 10 years, we have been supporting entrepreneurs in maximising tourism support and optimising the tax aspects of their tourism investments.

Is your project not eligible for support from Portugal 2030 or Turismo de Portugal? For entrepreneurs who do not use the Tourism support programmes mentioned in this article, there is always the possibility of benefiting from RFAI as a tax optimisation strategy for the investment made.

Yunit Methodology for a successful application for tourism support

At Yunit Consulting, we have followed the evolution of the tourism sector in Portugal and are proud to have contributed to the success of hundreds of approved applications. Based on this experience, we have developed a rigorous methodology adapted to the requirements of tourism support, with a special focus on the Portugal 2030 programmes and other national and European incentives.

1. Initial diagnosis: We analyse the project's maturity, value proposition, and strategic and territorial framework to identify the main eligibility factors and necessary adaptations.
2. Concept structuring: We support the definition of a coherent, sustainable, and differentiating tourism model, ensuring alignment between the idea, the service proposal, and the architectural layout.
3. Economic-financial viability: We develop solid financial studies based on realistic assumptions adjusted to the sector's reality, which are fundamental for lending credibility to the application.
4. Application and documentation: We prepare the application with a focus on clarity, substantiation, and suitability for the evaluation criteria, handling all required technical and narrative documentation.
5. Post-submission follow-up: We maintain active liaison with Turismo de Portugal and other relevant bodies, ensuring strict compliance with requirements and deadlines until the project's approval and execution.

At Yunit Consulting, we believe that each tourism project is unique — and it is this uniqueness that motivates us to design funding solutions and tax benefits that maximise the return on investment. With an integrated and specialised approach, we position ourselves as a strategic partner for all promoters who aim to innovate, grow, and leave a mark on the territory.

Share your project with us. Together, let's take the leap.