Association of hotels: The proposed tighter measures against Covid-19 would cause mass bankruptcies

The Bulgarian Association of Hotel Executives (BAHE) expresses its concern over the measures proposed by the Ministry of Health against the spread of Covid-19, some of which include the re-closure of restaurants, including hotel restaurants and bars.

If adopted in the proposed form, these measures will deal a severe and in some cases fatal blow to many hotels, whose business in recent months has barely recovered from the state of emergency imposed on March 13, 2020, says the position of BAHE, distributed to the media.

A recent BAHE survey of the industry showed that there is not a single case of coronavirus infection in a hotel in Bulgaria, which is indicative of the seriousness with which hoteliers treat the safety of their guests.

On the other hand, the hotel business is a complex business that includes various "components" that work in concert, one such component being the hotel restaurants. If these restaurants are forced to close, in many cases this will lead to the closure of the hotels themselves, because they will not be able to provide basic food for their guests. This already happened in the spring, during the state of emergency, when due to the ban on the operation of restaurants and spas, many hotels closed and their teams, created for years, had to go to on the dole.

Tour operators seek 5 economic solutions if the new measures are adopted

If there is a ban on the operation of hotel restaurants again, the social cost of the measures will be extremely high - thousands of employees left without a livelihood, who would hardly accept the arguments that all this is actually done for their good, says in the position of hoteliers.

If the proposed measures are adopted in their current form, they are expected to lead to:

- mass bankruptcies of hotels

- bankruptcies of a number of hotel-related businesses - food and beverage manufacturers, trade and transport companies, suppliers of products and services for the operational functioning of hotels, suppliers, contractors and subcontractors for the construction and renovation of hotels and many others.

- a total catastrophe of the winter tourist season, which is expected to be weak..

The Bulgarian Association of Hotel Executives insists that restaurants, spas, fitness and wellness centres not be closed and that the operation of hotels not be restricted before the government announces a programme with reasonable economic measures to compensate businesses and employees, which will allow hoteliers to avoid bankruptcies and those employed in tourism and related businesses to keep their incomes.

Such a programme should include:

- For the period of validity of the new restrictive measures, the state to assume the maintenance of the staff of the businesses closed by order (restaurants, spas, etc.), amounting to 80% of the income before closing, and the employer to be released from the obligation to pay of the remaining 20% ​​- in order to maintain employment.

· The "60/40" programme to be extended at least until April 2021 with an option for subsequent extension - until July 1, 2021, and it should also apply to newly opened hotels in 2020.

By the end of 2020 and for the next 2021 to cancel the fees for categorization, re-categorization or change of circumstances for the tourist sites.

· Exemption from garbage tax and tax on hotel buildings, which have to cease their activities as a result of the adopted anti-epidemic measures. The grace period should be valid for the time during which the respective hotel has not been operating.

· Moratorium on installments for principal and interest on loans to legal entities and individuals in the field of tourism for the period in which the anti-epidemic measures are in force, plus one additional month, which is necessary time to restart the activities of hotels.

The association reminds that tourism provides a livelihood for thousands of people, including those from minorities and in areas with traditionally high unemployment, which makes it one of the most socially important sectors of the economy.

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