Romania's hospitality sector requests compensations for new restrictions

The new restrictions enforced as of October 25, aimed at curbing the fourth wave of the Covid-19 pandemic, will compress the activity in the HoReCa sector to one-quarter of the pre-crisis level (in 2019) therefore, the companies will need compensations, according to industry associations.

The Government has extended compensations for 2020, in the amount to 20% of the loss in revenues calculated by individual companies in the sector from 2019 to 2020. But for 2021, there was no compensation offered, based on the fact that until now the hotels and restaurants have operated more or less freely.

But as of October 25, some of the units (such as bars) were completely closed for 30 days, while others (restaurants) will operate at 50% of their capacity.

"Restrictions lead us again to a low level of activity, some 70-75% down compared to 2019, and this must be somehow compensated by support schemes or tax facilities. Otherwise, the industry will not withstand the fourth wave," said Călin Ile, president of the Federation of the Romanian Hotel Industry (FIHR), quoted by Agerpres.

He admits the restrictions were needed to address the health crisis but stressed the lack of financial support for the industry.

"We haven't yet received the compensations calculated for 2020, not to mention some support to cover the losses incurred in 2021," the FIHR president stated.

(Photo: Cristi Croitoru/ Dreamstime)

andrei@romania-insider.com

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Romania's hospitality sector requests compensations for new restrictions

The new restrictions enforced as of October 25, aimed at curbing the fourth wave of the Covid-19 pandemic, will compress the activity in the HoReCa sector to one-quarter of the pre-crisis level (in 2019) therefore, the companies will need compensations, according to industry associations.

The Government has extended compensations for 2020, in the amount to 20% of the loss in revenues calculated by individual companies in the sector from 2019 to 2020. But for 2021, there was no compensation offered, based on the fact that until now the hotels and restaurants have operated more or less freely.

But as of October 25, some of the units (such as bars) were completely closed for 30 days, while others (restaurants) will operate at 50% of their capacity.

"Restrictions lead us again to a low level of activity, some 70-75% down compared to 2019, and this must be somehow compensated by support schemes or tax facilities. Otherwise, the industry will not withstand the fourth wave," said Călin Ile, president of the Federation of the Romanian Hotel Industry (FIHR), quoted by Agerpres.

He admits the restrictions were needed to address the health crisis but stressed the lack of financial support for the industry.

"We haven't yet received the compensations calculated for 2020, not to mention some support to cover the losses incurred in 2021," the FIHR president stated.

(Photo: Cristi Croitoru/ Dreamstime)

andrei@romania-insider.com

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