Belgrade will host the international specialized exhibition EXPO 2027, and preparations have already begun, with extensive planning for the tasks that need to be completed in the coming years to welcome the numerous guests of this event. According to government representatives, due to the EXPO 2027 exhibition, between 120 and 130 hotels will need to be built in Belgrade, as an estimated 2.6 million visitors are expected.
To ensure that the capital of Serbia is ready to welcome guests, the Regulation on Determining Criteria for Granting Incentives to Attract Direct Investments in the hotel accommodation services sector has recently been amended. It envisages a 20% investment cost support for the construction of new hotels and the expansion of existing ones in the Belgrade region. Applications for state aid are possible until the end of 2024.
Funds can be allocated for investment projects in the Belgrade region for the construction of hotels categorized with three or more stars, having a minimum of 50 accommodation units, and a minimum investment value of five million euros. The state will also assist hoteliers in the Belgrade region planning the reconstruction or expansion of hotels categorized with three or more stars, with a minimum of 50 accommodation units and a minimum investment value of two million euros.
Hoteliers must provide a 25% contribution of eligible costs from their own funds or other sources that do not include state aid.
For investments in the Belgrade region, the deadline for realizing the investment project is two years from the date of submitting the application for the allocation of incentive funds. After the conclusion of the incentive fund allocation agreement, this period can be extended, at the latest until December 31, 2026.
How many hotels need to be built?
Currently, Belgrade has around 113 hotels, with 73 being four-star hotels.
Professor Dr. Miroslav Knežević from the Faculty of Tourism and Hotel Management at the University of Singidunum told Euronews Serbia that providing subsidies for the construction of hotels in Belgrade is an excellent move because, he adds, hotel capacities will be necessary due to the hosting of the EXPO 2027 exhibition. He emphasizes the importance of carefully assessing the volume of accommodation capacities, which is measured by the number of accommodation units.
“You have a hotel that can have 30 rooms, it can have 100 rooms, or 200 rooms, and you need to assess the volume of accommodation units, not necessarily the number of hotels. With 50 hotels, you can achieve the expected volume, or you can do it with 70 or 100, depending on the number of accommodation units per facility,” said Knežević.
Regarding the distribution of accommodation units and how they will be arranged, Knežević mentions private accommodation.
“I think we should wait a little longer, and it will soon become clear in the market; the exact needs will be assessed. I believe there is enough time to compensate for the number of accommodation units, to build some facilities, to expand some existing ones. Regarding the hotel industry, we will be well-prepared for what awaits Belgrade, not only Belgrade but the whole of Serbia,” said Knežević.
He states that the regulation was amended at the end of last year so that these capacities could be built, categorized, and ready within the next three years.
“When the event starts, you must have ready capacities,” said Knežević.
