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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Close to 100,000 jobs could disappear in Romania’s HoReCa sector due to restrictions

The closing of the indoor restaurants, based on no logic, will cost the jobs of nearly half of the employees in the HoReCa industry, the Romanian Hotel Industry Federation (FIHR) estimates.

According to the same source, companies in the sector will accumulate some EUR 3 billion in lost revenues by the end of the year.

Some 90,000-100,000 employees of the initial 230,000 in the sector will lose their jobs by the end of the year, compared to some 80,000 estimated before the authorities' latest decision on October 6, FIHR head Calin Ilie warned, Agerpres reported.

He says the sector has survived so far due to the decisions taken by the Government on covering technical unemployment and compensating 41.5% of the salary after the people return to work. The sector's revenues have collapsed, he explained.

"We estimate that our industry will lose about 60% of its turnover in 2020. Last year we had EUR 5 bln in revenues, and 60% means a loss of about EUR 3 bln," the industry representative continued.

The HoReCa sector's direct contribution to Romania's GDP is 2.79%, and the total contribution (indirect included) is 5.4%, he added.

The casino industry, mostly comprising slot machine operators, expressed an even more radical reaction to authorities' decision to suspend operations in Bucharest (and other cities with high infection rates).

The industry's representatives claim that they generate EUR 2 million in taxes and contributions to the budget each day, Mediafax reported.

If suspended, the Government will have to pay EUR 1.5 mln in unemployment benefits to the 450,000 employees.

The reaction of HoReCa and gambling operators come after the local authorities in Bucharest decided to close restaurants, bars, clubs, cinemas, theaters, as well as casinos and gambling venues due to the high incidence of new COVID-19 cases.

Similar decisions were taken in Iasi and other localities with high COVID-19 numbers. Industry representatives believe the measures are not justified as there's no direct link between restaurants and higher infection rates.

Indoor restaurants and cinemas were the last to reopen, in September, after having their activity suspended for almost six months.

(Photo: Thea Photography | Dreamstime.com)

[email protected]

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

Close to 100,000 jobs could disappear in Romania’s HoReCa sector due to restrictions

The closing of the indoor restaurants, based on no logic, will cost the jobs of nearly half of the employees in the HoReCa industry, the Romanian Hotel Industry Federation (FIHR) estimates.

According to the same source, companies in the sector will accumulate some EUR 3 billion in lost revenues by the end of the year.

Some 90,000-100,000 employees of the initial 230,000 in the sector will lose their jobs by the end of the year, compared to some 80,000 estimated before the authorities' latest decision on October 6, FIHR head Calin Ilie warned, Agerpres reported.

He says the sector has survived so far due to the decisions taken by the Government on covering technical unemployment and compensating 41.5% of the salary after the people return to work. The sector's revenues have collapsed, he explained.

"We estimate that our industry will lose about 60% of its turnover in 2020. Last year we had EUR 5 bln in revenues, and 60% means a loss of about EUR 3 bln," the industry representative continued.

The HoReCa sector's direct contribution to Romania's GDP is 2.79%, and the total contribution (indirect included) is 5.4%, he added.

The casino industry, mostly comprising slot machine operators, expressed an even more radical reaction to authorities' decision to suspend operations in Bucharest (and other cities with high infection rates).

The industry's representatives claim that they generate EUR 2 million in taxes and contributions to the budget each day, Mediafax reported.

If suspended, the Government will have to pay EUR 1.5 mln in unemployment benefits to the 450,000 employees.

The reaction of HoReCa and gambling operators come after the local authorities in Bucharest decided to close restaurants, bars, clubs, cinemas, theaters, as well as casinos and gambling venues due to the high incidence of new COVID-19 cases.

Similar decisions were taken in Iasi and other localities with high COVID-19 numbers. Industry representatives believe the measures are not justified as there's no direct link between restaurants and higher infection rates.

Indoor restaurants and cinemas were the last to reopen, in September, after having their activity suspended for almost six months.

(Photo: Thea Photography | Dreamstime.com)

[email protected]

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