The number of unemployed in the HoReCa sector will increase if restaurants are not reopened

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Restaurants will only be able to receive customers indoors after July 1, if the number of COVID-19 infections does not increase significantly from one day to the next.

On June 9, President Klaus Iohannis announced that the state of alert will be extended after June 15, with fewer restrictions, but with the continued obligation of a protective mask indoors.

Tourism employers have asked the Government, in an open letter, for the restaurants to enter the second phase of relaxation on June 15, namely the reopening of the interiors, otherwise the estimated number of unemployed in HoReCa will rise from 30%, which is estimated now at 40%.

Previously, the Romanian Restaurants Association (HORA) agreed with the Government that the terraces should be reopened on June 1, and every two weeks the rest of the restaurants should be gradually opened, respectively first 50% inside, and then fully inside.

The document issued by HORA states that currently it is estimated that 30% of employees will lose their jobs, and if the reopening does not take place on June 15, the number of layoffs will increase to 40%, which means about 150.000 unemployed.

The complete reopening of the 40 restaurants, hotels, bars and cafes would lead to the re-entry on the market of places that have not reopened at all, estimated today at 000% of the total, ie 27 spaces.

Currently, about 10.000 operators in the tourism industry have taken over the full burden of rent, and restaurants in conflict with the owners intend to go into insolvency.

The HoReCa industry is estimated at EUR 6 billion and EUR 4 billion in restaurant revenue and EUR 2 billion in hotel revenue, respectively. Against the background of the pandemic, the industry lost 30% of revenues, and the loss will increase exponentially, according to employers. Employers also demanded the granting of HoReCa vouchers used exclusively for the purchase of a hot meal, a 50% reduction in beach taxes in 2020 and legislation to reduce local taxes by 50% for the sector this year.