How do you breathe new life into the local economy after the corona crisis? That was the issue that the Amstelveen council of B&W presented to local entrepreneurs. They came up with a collegiate solution: an Amstelveen gift card, which can be issued free of charge for the time being at companies that have been hit the hardest.
The Association of Amstelveense Retailers (VAD) will receive a subsidy of 75,000 euros to implement this idea together with Groupcard. This money comes from a special pot of 750,000 euros that the municipality has made available for entrepreneurs who want to give the local economy a boost: The Local Economy Stimulation Fund.
“We wanted to take action from the challenges of corona and this is a great way to support both entrepreneurs and the local economy,” says VAD president and local entrepreneur Atilla Meulenbelt.
Solidarity
The gift card can soon be purchased and issued at participating Amstelveen shops, museums and restaurants. The first few thousand cards are given away for free in all kinds of giveaways. The promotion of the card will mainly focus on attracting the public to entrepreneurs who have received the hardest corona blow.
Participating entrepreneurs pay commission on the value of each gift card that is returned to them. ‘Essential shops’, which have had little or no impact from the corona crisis, pay a ‘solidarity contribution’ in the first year. This entails a commission of 8 percent, while affected companies do not have to pay anything.
From April next year, each participant will contribute 6 percent. This amount is still lower than the commission that must be paid for popular gift cards such as the VVV voucher. The success of The Amstelveense gift therefore partly depends on the solidarity of Amstelveen entrepreneurs who got through the corona crisis well. Meulenbelt is confident that they want to commit themselves to their colleagues, he explains in the video below.
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Chairman of the VAD Atilla Meulenbelt about why the Amstelveense Gift will work according to him. – NH News
The money available in the Stimulation Fund comes from the Corona Emergency Fund, into which the municipality previously pumped one million euros. A total of eighteen applications have now been received by the Stimulation Fund for the local economy. Seven applications were partially or fully awarded. A number of applications are still pending.
250,000 euros of the 750,000 euros has already been paid, but that amount is expected to be around 450,000 euros soon. Each application is reviewed by an independent advisory committee. The fund will close no later than December 31, 2023. If there is still money left, it will be returned to the Corona Emergency Fund. And if the Corona Emergency Fund is no longer needed by then, the remaining amount will return to the general funds pot.
Amstelveen entrepreneurs can also go for free training courses at ‘Back on track’, a program of the municipality in collaboration with the entrepreneurs’ association.
The brand new alderman for Economic Affairs, Adam Elzakalai, is also impressed by the idea. “There are of course a lot of gift cards in circulation,” he tells NH Nieuws. “They often go to national web stores, but how great is it that you can also use the Amstelveense Gift in Amstelveen to stimulate the local economy.”
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Alderman of Economic Affairs Adam Elzakalai about the Amstelveense Gift – NH Nieuws
The Amstelveens Gift is to be launched at the beginning of September and it is intended that it will last. The VAD hopes this will also give a boost to the economy in the long term. “Ultimately, the Amstelvener must consciously choose a card that allows money to enter the local economy,” says Meulenbelt.