During its regular session the Cabinet approved a significant financial support plan for tourism companies. Specifically, the government decided to provide soft loans with a 6 percent interest rate and a repayment period of up to six years. The loans will target business owners in the tourism sector, with commercial banks acting as the lending intermediaries.
Moreover, these soft loans aim to strengthen Mongolia’s tourism market capacity. In addition, they intend to improve service quality and raise standards throughout the industry. The government also expects the loans to help create new tourism products and promote Mongolian cultural heritage worldwide.
Furthermore, the soft loans will foster regional development by supporting year-round and cross-border tourism. As a result, the loans should increase the number of tourists visiting Mongolia and create more jobs in the tourism sector. Notably, this financial assistance plans to significantly boost the inflow of foreign currency to the country.
The government has allocated a total of MNT 2 trillion for these soft loans. It will distribute this amount to tourism enterprises until the end of 2028. Given this substantial funding, experts anticipate considerable growth in the tourism industry.
By 2030, the number of tourists arriving in Mongolia is projected to rise by 623,000. Consequently, the total number of annual visitors should reach around two million. Additionally, the soft loans are expected to create over 8,000 new jobs in the tourism sector, further boosting the economy.
Finally, this initiative could generate tourism-related revenue worth about USD 1 billion by 2030. This figure highlights the government’s commitment to developing tourism as a key economic driver.
In conclusion, soft loans provide essential support to tourism companies. They will help the sector expand its capacity, improve services, and create jobs. With this targeted financial support, Mongolia’s tourism industry looks poised for significant growth in the coming years.
Therefore, soft loans will play a vital role in shaping the future of Mongolia’s tourism market. By enabling businesses to invest and innovate, these loans ensure sustained development and prosperity.
