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The restrictions imposed by the government in the context of the Covid-19 pandemic will result in the layoff of about 100,000 HoReCa workers by the end of the year, and in a 3 billion-euro loss for the industry, president of the Romanian Hotel Industry Federation Calin Ile told AGERPRES on Wednesday.
He said the Tuesday decision of the Bucharest City Committee for Emergency Situations to shut down again restaurants and cafes was taken in absence of any evidence that this sector has contributed to the spread of the infection.
"After this decision to close the restaurants, with no communication and with no logically presented arguments, we will again be compelled to put on unemployment people whom we struggled to keep on the job during this difficult period. Until now we were talking about 40 percent of HoReCa workers being made redundant by the end of the year, but this decision adds another 10 percent to this figure. Up until now we were estimating that about 80,000 of the 230,000 people employed in Romania's hotels and restaurants will be laid off by the end of the year, but now I think we'll reach 90 - 100,000. Which is a lot," Ile said.
According to him, the sector has survived so far due to the government's decisions on ensuring furlough payment and compensating 41.5 percent of the salary after the return of the people to work.
"We estimate that our industry's turnover will slump by about 60 percent this year. The turnover of the HoReCa industry last year was of five billion euros, 60 percent means a loss of about three billion euros," the industry representative continued.
The direct contribution of the HoReCa industry to GDP is 2.79 percent, and its total contribution is 5.4 percent.
"Many restaurants will never open again, and the businesses most at risk are those that pay rent for spaces such as those in malls or other shopping centres," Ile explained.
Sector officials will ask the government to provide a compensation plan in the near future. The first meeting is scheduled for Friday, at the headquarters of the Labor Ministry, and a discussion with Prime Minister Ludovic Orban might take place next week.
