in-cyprus 17 April 2020 -Bouli Hadjioannou
Hotels face a daunting season ahead amid a world coronavirus pandemic which has closed airports and brought the Cyprus economy to a standstill.
The Cyprus Chamber of Commerce and Industry carried out a survey among hoteliers to obtain a clearer picture of the situation, Demetra Landou reports for Phileleftheros.
A total of 35 companies active in the tourist sector took part. They set out their projections and also submitted proposals.
Here are some of the highlights.
The biggest problems
Inability to repay loans
Inability to pay wages
Lack of liquidity
Reimbursing the advance payments
Uncertainty over the summer
Anticipated drop in bookings (March-April)
UK – 100% see a drop of more than 50% of bookings
Russia – 96% see a drop of more than 50% of bookings and 4% a drop of 25%-50%
Germany – 93% see a drop of more than 50% of bookings and 50% and 7% of 0%-25%
Scandinavia – 91% see a drop of more than 50% of bookings and 9% τa drop of 0%-25%
UAE – 96% see a drop of more than 50% of bookings and 4% a drop of 0%-25%
Anticipated drop in bookings (May-September)
UK – 51% see a drop of more than 50% of bookings, 37% a drop of 25%-50% and 12% a drop of 0%-25%
Russia – 46% see a drop of more than 50% of bookings,, 32% a drop of 25%-50% and 22% a drop of 0%-25%
Germany – 56% see a drop of more than 50% of bookings, 26% a drop of 25%-50% and 18% a drop of 0%-25%
Scandinavia – 36% see a drop of more than 50% of bookings, 32% a drop of 25%-50% and 32% a drop of 0%-25%
UAE – 32% see a drop of more than 50% of bookings, 26% a drop of 25%-50% and 42% a drop of 0%-25%
Staff
Of the 35 companies participating, 14.7% expects 10%-20% of staff to be affected, 38.2% expect 20%-50% of staff to be affected. One in two of hotels anticipate more than 50% of staff will be affected
Other measures for staff:
– 100% temporary suspension of employment
– Maintenance work to employ some of the staff
– No hiring of seasonal personnel
– Use of accumulated leave and unpaid leave
– Reduce salaries and working hours
Suggestions:
- Cutting the VAT rate by at least 50% until December 2020 for the tourist sector
- Reducing the cost of electricity
- Freezing the collective agreement
- Reducing municipal and other taxes
- Flexibility in human resources programmes
- Given that hotels have closed and they have no revenue, all their obligations should be frozen until they reopen
