The Office of the President has announced that more than 197 billion MNT in loans will be issued to Ulaanbaatar hotels to prepare for the reception of guests attending the Asia Europe Meeting (ASEM) Summit being held in Mongolia next year. 

In total, 43 hotels will receive guests and representatives attending the ASEM Summit. There will be 3,586 rooms with 5,379 beds for guests and 37 presidential suites available for leaders of countries participating in ASEM.

Of these 43 hotels, one is a one star facility, three hotels are considered two stars, 11 hotels considered three stars, four hotels considered four stars, and three hotels considered five star accommodations. Several new hotels are also scheduled to open in 2016.

Thirty-four of the hotels require investment for improvement and upgrades, with an estimated 197 billion 384 million MNT required for renovations. The issue was discussed by the cabinet, which has decided to provide soft loans to these businesses.

News.mn spoke to the Head of the Office of the President P.Tsagaan to learn more about the decision.

How will financial assistance be provided to hotels?

Soft loans will be provided with three to five year terms with an interest rate of nine percent. For one hotel, a maximum of 30 billion MNT will be provided as a soft loan. This money will be spent for the procurement of dishes, security services, hotel renovations, and bedding. 

Hotels will repay this money to commercial banks. This issue and the procedure of loan allocations will be discussed at the cabinet meeting next week.

How about the security of guest and delegates who will participate in the ASEM Summit?

Six working groups have been established for ASEM preparations. We have discussed this issue with Governor E.Bat-Uul.  Exits and entries to the hotels are now being checked.  Special civil servants will participate in improving security and state organizations will participate in ensuring safety.