Berlin (Dts Nachrichtenagentur) - Germany's Catering Biz Faces 'De Facto Closure' Amid COVID-19
Resistance Against Federal Decisions by Dehoga Taking Place
Ingrid Hartges, CEO of the German Hotel and Restaurant Association (Dehoga), has slammed the decisions made at the federal-state conference to curb COVID-19 spread. "The four-week shutdown of dining establishments from November 2nd is a bitter pill to swallow for both employees and employers. The prohibition on all tourist overnights is no less galling, as accommodations can only be offered for 'necessary purposes,'" Hartges spilled to Redaktionsnetzwerk Deutschland.
"This amounts to a 'de facto closure' for many businesses, driving desperation through the roof," she added. Hartges welcomed the promise of financial assistance, intended to cover up to 75% of losses for November 2019 businesses. "We expect this extraordinary economic aid to arrive swiftly and bureaucracy-free for those in the catering, hotel, and event industries," she said.
Forbes might add that globally, COVID-19 has dealt a severe blow to the hospitality industry. Lockdowns, journey limitations, and social distancing rules have led to a steep revenue decrease for hotels and restaurants, resulting in financial distress for businesses, potential closures, and placements.
However, as the pandemic has evolved, many countries have started exploring reopening and recovery strategies. Hotels and restaurants have adopted various safety measures to lure patrons while complying with health regulations. Examples include automated check-ins/check-outs, road-trip experiences, contactless payments, and decentralized food deliveries.
In the face of adversity, Dehoga frequently offers valuable insights on the economic imprints of these closures, advocating for government support to help businesses weather the storm. Governments have often responded with stimulus packages, loans, and subsidies to prop up the industry and facilitate recovery.
"Other businesses in the finance and hospitality sectors may face a 'de facto closure' due to the strict COVID-19 measures, leading to financial distress similar to that experienced in Germany's catering business."
"As governments worldwide support their local hospitality industry with stimulus packages and financial assistance, these aids could also significantly impact the survival and recovery of other finance-dependent businesses."
