Over 37% of hotels have cut jobs - Association of Hotels of Armenia
27.07.2020,
19:43
In Armenia, 37.5% of hotels had to cut their staff, according to a study carried out by the Association of Hotels of Armenia.
YEREVAN, July 27. /ARKA/. In Armenia, 37.5% of hotels had to cut their staff, according to a study carried out by the Association of Hotels of Armenia.
"The impact of the coronavirus on the tourism sector in Armenia, especially on travel companies, hotels, boarding houses and a number of other organizations, has led to unprecedented difficulties. Today we are already dealing with the following realities: partial or complete cessation of companies' activities, job cuts, lower wages," the association says in its study.
It says that according to the results of a study conducted among hotels belonging to the association, 37.5% of hotels have already cut jobs and this process will continue, since 53.3% of hotels also plan to resort to such a step. It also says that 22% of employers who have already dismissed people are inclined to continue layoffs in the future.
The largest rate of layoffs was in bars and restaurants (48.4%), room service (42.8%), as well as the reception and registration of visitors (41.4%).
Job cuts are not the only bad news. Unfortunately, many companies, trying to retain some of their employees, due to lack of funds had to cut salaries. Only 25% of companies did not lay off staff and managed to retain pre-crisis wages.
Based on this, the Association developed a sector assistance plan that was presented to the government. In accordance to the project, the government should provide support in the following two ways: by reducing the tax burden, including abolishing the income tax on wages, and subsidizing 50% of the salaries of employees registered with companies until the companies return to self-financing.
"Without such comprehensive urgent support from the government, the most important sector of Armenia's economic development will be left alone in the face of an unprecedented economic crisis, and the rapid decline in jobs and the decline in the sector's opportunities will certainly continue," the study said.
A state of emergency was declared in Armenia on March 16, 2020 in order to curb the spread of coronavirus, and then was extended four times. Thus, according to the decision of the government of July 13, the state of emergency is valid in Armenia until 17:00 on August 12.
The restrictions on free movement and certain types of economic activities introduced on March 24 were lifted on May 4, and on May 18, public transport, gyms, kindergartens, and catering facilities resumed operating.
According to the latest report issued on July 27, there are 37,390 confirmed COVID-19 cases, 26,665 recovered patients and 711 deaths in Armenia. -0---
"The impact of the coronavirus on the tourism sector in Armenia, especially on travel companies, hotels, boarding houses and a number of other organizations, has led to unprecedented difficulties. Today we are already dealing with the following realities: partial or complete cessation of companies' activities, job cuts, lower wages," the association says in its study.
It says that according to the results of a study conducted among hotels belonging to the association, 37.5% of hotels have already cut jobs and this process will continue, since 53.3% of hotels also plan to resort to such a step. It also says that 22% of employers who have already dismissed people are inclined to continue layoffs in the future.
The largest rate of layoffs was in bars and restaurants (48.4%), room service (42.8%), as well as the reception and registration of visitors (41.4%).
Job cuts are not the only bad news. Unfortunately, many companies, trying to retain some of their employees, due to lack of funds had to cut salaries. Only 25% of companies did not lay off staff and managed to retain pre-crisis wages.
Based on this, the Association developed a sector assistance plan that was presented to the government. In accordance to the project, the government should provide support in the following two ways: by reducing the tax burden, including abolishing the income tax on wages, and subsidizing 50% of the salaries of employees registered with companies until the companies return to self-financing.
"Without such comprehensive urgent support from the government, the most important sector of Armenia's economic development will be left alone in the face of an unprecedented economic crisis, and the rapid decline in jobs and the decline in the sector's opportunities will certainly continue," the study said.
A state of emergency was declared in Armenia on March 16, 2020 in order to curb the spread of coronavirus, and then was extended four times. Thus, according to the decision of the government of July 13, the state of emergency is valid in Armenia until 17:00 on August 12.
The restrictions on free movement and certain types of economic activities introduced on March 24 were lifted on May 4, and on May 18, public transport, gyms, kindergartens, and catering facilities resumed operating.
According to the latest report issued on July 27, there are 37,390 confirmed COVID-19 cases, 26,665 recovered patients and 711 deaths in Armenia. -0---
