Romanian HoReCa association expects 80% lower revenues, employment by yearend

The association of companies in Romania’s hospitality industry (HORA) estimates that up to EUR 2.4 billion, namely 80% of the industry’s total turnover projected for this year (EUR 3 bln), will be lost due to the COVID-19 epidemic.

Additionally, some 320,000 of the 400,000 employees in this sector could lose their jobs, HORA warned, according to Ziarul Financiar.

This is, however, an extrapolation to the whole year of the developments seen in the last week, hence it is rather “the worst-case scenario”.

The organization conducted a survey among 341 member companies, the conclusions being that their sales decreased by 80% in the last week, and over 85% of them will suspend operations and will have to send home over 28,000 employees.

In this context, HORA has asked the authorities to come up with a series of immediate measures, applied to all the companies in this industry. The association wants the state to cover the benefits to employees sent in “technical unemployment” (75% of their wages). It also urges the state to disburse quickly the VAT owed to firms.

HORA also says hospitality companies need their loan repayment deferred and loans guaranteed by the state.

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