Tourism has been one of the hardest-hit economic sectors globally, and in Romania, we are talking about a decrease in turnover of approximately 70%, reaching the complete paralysis of agencies specialized in incoming or events, stated Dumitru Luca, president of the National Association of Travel Agencies (ANAT), during the year-end conference on Wednesday.
What differs substantially from one country to another is the percentage of GDP that tourism represents, and here we have a handicap, which was seen in the perception of our authorities, who took a long time to understand the necessity of giving tourism a chance. After many months of general measures and only obstacles in the way of our activity, we felt a change in perception only towards the end of this year, stated Dumitru Luca.
The National Association of Travel Agencies (ANAT) currently has 368 members, of which 26 are associate members (other organizations and tourism companies, besides travel agencies), and brings together about 85% of the travel agency market in terms of volume and turnover.
”Unfortunately, unpredictability, the fear of traveling, and the fear of paying money in advance are our main enemies and will compromise – at least for a period – the concept of early booking, which offered multiple advantages to both travelers and providers. Travelers will no longer be able to benefit from consistent discounts for advance payments, and providers will no longer have access to financing based on advance bookings and will have to finance their investments and operational expenses from other sources – which are harder to access and more expensive. Thus, it will be more difficult for travel agencies to scale future actions, such as charters or circuits,” say ANAT representatives.
According to them, travel agencies have an advantage, namely that all offered travel service packages are guaranteed against insolvency – meaning all money paid in advance is insured, which does not happen if, for example, a plane ticket was purchased from an online platform or directly from the company’s website and a hotel reservation was made directly with the provider or through another platform.
In the case of any unwanted, unpredictable event, the agency offers (or is obliged to offer) consultancy and solutions. In the case of “on your own” bookings, all non-compliance risks are taken over and assumed by the traveler.
Furthermore, compensatory vouchers have been adopted since the beginning of the pandemic in several European states. The project for guaranteeing these vouchers has been moving between ministries for 6 months, while agencies continue to bear the pressure of refund requests and control authorities that refuse to understand the specifics of the activity and the responsibilities of each link, says ANAT.
At the same time, ANAT specifies that the IMM Invest program is a program that does not really help travel agencies, given that banks consider them to be in a high-risk field and do not grant loans even with state guarantees.
Regarding investment grants, they say it is yet another forbidden fruit, given that travel agencies, in order to survive and not create social tensions, have started selling existing assets.
”The 20% compensation for the loss in 2020 versus 2019 – recently adopted – is wonderful news, obviously the best of this year, a requirement of the travel agency profession based on the experience of other countries. Realistically speaking, no one will see any money sooner than 5 months. And yet, with a minimum of goodwill and understanding, a first step could be taken in implementing this measure: open the application, confirm eligibility in advance, and based on this confirmation, allow access to bridge loans and the deferral of budgetary debt payments, which would later be paid with priority upon receiving the aid,” they add.
A major problem exists in the case of balneoclimateric (spa) tourism. Indoor pools are closed, but medical treatment bases are open. The only ones open are outdoor pools.
At the beginning of March, ANAT estimated that tourists would travel at a level of 15% compared to the previous year, and the reality was close, but slightly better – the share was about 20-25%.
In this season, destinations have changed, with exotic destinations being preferred, where tourists could arrive without major problems. For Romania, during the New Year period and in January, there are two exotic destinations tourists can head towards, namely the Maldives and Zanzibar, while a more accessible warm destination is Egypt.
ANAT supports, along with many other employer associations, the re-establishment of a Ministry of Entrepreneurship and Tourism, led by a technocrat.
Frequently Asked Questions
By how much did the turnover in Romanian tourism decrease?The turnover in the tourism sector decreased by approximately 70%, severely affecting incoming and event agencies.
Why is booking through an agency safer during the pandemic?Travel packages offered by agencies are guaranteed against insolvency, protecting the funds paid in advance by tourists.
Which holiday destinations are recommended for the winter period?Exotic destinations such as the Maldives and Zanzibar are in high demand, along with Egypt as a more accessible warm option.