Guaranteed Loans For Hotels, Motels

Press, Volume C, Issue 29696, 14 December 1961, Page 16

Guaranteed Loans For Hotels, Motels

(New Zealand Press Association) WELLINGTON, December 13. The Government has introduced a mortgage guarantee scheme for tourist accommodation. The Minister in charge of Tourist and Health Resorts, (Mr Eyre) said today, that under the scheme, lenders will be able to advance on first mortgage up to 80 per cent, of the valuation in approved cases, with the difference between 66-2/3 per cent, and 80 per cent, being guaranteed by the Government.

“Loans will be guaranteed only where the additional accommodation is of a standard and built in localities approved by the Tourist Department and the Tourist Hotel Corporation.” said Mr Eyre. , ... “The accommodation will also have to confirm to a standard suitable for local or overseas tourists who are likely to patronise the particular area.” he said. If the recommendations of the department and the corporation were favourable, the financial aspect would be dealt with by the State Advances Corporation. “The aim of the scheme is to encourage private enterprise to provide more hotel and motel accommodation where existing facilities are insufficient to meet the demand,” said Mr Eyre. “An inter - departmental committee, the Tourist Accommodation Investigating Committee, has been set up

to process applications for assistance. The Tourist Hotel Corporation and the State Advances Corporation are represented on the committee and it will be under the chairmanship of the general manager of the Tourist Department. "Great interest has already been shown in the scheme.” said Mr Eyre. More than 30 tentative applications had been received. These would be dealt with as soon as investigations had been completed. All grades of accommodation would be considered for guarantee so that the scheme would operate for the benefit of New Zealanders on holiday as well as for tourists from abroad.