Bars and restaurants

Restaurants could take "500 days" to recover

Restaurant sector representatives presented "survival" requirements on Thursday. | Teresa Ayuga

Majorca Daily Bulletin reporterPalma28/05/2020 14:35

The vice-president of the CAEB Majorca Restaurants Association, Juan Miguel Ferrer, said on Thursday that hospitality has been the hardest hit sector because of the Covid restrictions and loss of tourism and that it will take "around 500 days" to recover. His calculation is based on the fact that many businesses will not be opening this year and will need all of next year to be able to open.

Ferrer and representatives of other associations in the restaurant and hospitality sector presented a document to the national government delegation that set out requirements to "try and guarantee the survival" of the sector.

The aim, Ferrer stressed, is "to try and save as many employees and companies as possible in a sector that is closely linked to tourism". One of the principal demands relates to ERTE, for which there is a lack of clarity. It needs to be extended until December, and affected employees should be able to be placed under ERTE or to leave it "depending on productivity".

Ferrer stressed that employers and unions are together in making these demands, as they are "pro-company and pro-employee". He added that the sector is looking for a reduction in IVA (VAT) in order to boost internal consumer demand, for a "Marshall Plan" backed by European funds, and for improved credit facilities for small businesses and the self-employed. With these various measures, it is believed that businesses will be able to open at the start of July.

Regarding the regional government's request for Madrid authorisation to allow foreign tourists in the second half of June, Ferrer expressed his support but was cautious. "We need clear rules regarding ERTE in order to know what the situation will be and if we can open."