Slovenia’s Hospitality Industry Sets Out Demands for More Govt Support

By , 12 Jan 2021, 15:59 PM Business
Slovenia’s Hospitality Industry Sets Out Demands for More Govt Support JL Flanner

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STA, 12 January 2020 - Representatives of the hospitality industry have warned that the industry is one of the most affected by the Covid-19 epidemic, and that the government's aid measures do not suffice. They want special treatment in the next legislative stimulus package and a special emergency law that would fully cover wage costs and fixed costs.

Blaž Cvar, head of the Tourism and Catering Section of the Chamber of Craft and Small Business, said in Tuesday's statement that the second Covid-19 wave was much more severe and longer and that the hospitality industry required special treatment.

According to Cvar, the number of unemployed persons in the industry increased by 30% in the last three months, while more than 3,000 establishments closed their doors last year. This requires a special emergency law to be passed.

Together with related associations, the section would like to see such law determine measures in the case that the crisis persists, and an exit strategy, as a significant drop in turnover is expected in the first months after reopening.

Cvar also thinks that the government should start gradually relaxing restrictive measures, including in hospitality, which in the initial phase would mean being allowed to serve meals and drinks outdoors.

In the next legislative stimulus package, the section would like to see loss of turnover to be covered by the government.

It proposes that for each month as of January 2021, establishments receive 70% of the amount of monthly revenue recorded in 2019, the last year when the hospitality industry operated normally.

The section also wants that the current measure of subsidised furlough be extended, and that the state subsidises wages fully, as employers are not able to cover a full gross wage as they have no revenue at all.

It furthermore also wants that universal basic income, like in the spring, is fully covered by the state - EUR 700 plus contributions in full. Otherwise, many employees will not be able to cover basic expenses.

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