Monday, July 27 2020 19:16

ArmInfo."The coronavirus has dealt a serious blow to tourism in Armenia, in particular to travel companies, hotels, guest houses, where unemployment is growing  rapidly," the official statement of the Armenian Hotel Assotiation  (AHA) reads.

Today, companies operating in the tourism industry have completely or  partially stopped their activities, cut jobs, and cut wages. In  connection with the current situation, the unemployment rate,  according to the experts of the Association, may increase if urgent  measures are not taken.

AHA sociological research presented to ArmInfo says that today in  Armenia 37.5% of respondents - heads of travel companies noted that  they had to make reductions. Experts predict that this process will  take a long time, as another 53.3% of respondents noted that they  will soon go to layoffs.

Meanwhile, the most affected industries are restaurants and bars, as  well as hospitality. Staff reductions in these segments were recorded  at the level of 48.4%, 42.8%, 41.4%, respectively. Further  reductions, according to the study, will also affect these segments.

In addition, due to the pandemic, many companies, trying to keep some  of their employees in the face of a lack of financial resources, were  forced to cut the payroll. Only 25% of companies that did not make  staff reductions retained their pre-crisis salaries. In the companies  making reductions, the level of pre-crisis wages has not been  preserved. 25% of these companies pay 2/3 of the wages and the rest  are below 50%.

The study showed that only 33.3% of the surveyed hotels retained  their salaries. Of the remaining number, 29.1% provided paid leave,  25% sent people home for an indefinite period, 45.8% provided unpaid  leave.

In this regard, the Armenian Hotel Assotiation (AHA) developed an  action plan to get out of this difficult situation, which was sent in  the form of an open letter to the Tourism Committee of Armenia, the  Ministry of Economy and the Government of Armenia.  "As the state of  emergency was extended again in the country, the indicators of  inbound tourism this year continue to decline and approach zero, and  those companies that are trying to survive on domestic tourism, in  any case, register negative indicators," the source said.

According to AHA experts, urgent government assistance is now needed  to prevent a further deterioration in the labor market. In  particular, assistance should be in two directions: reducing the tax  burden, including the abolition of income tax, and subsidizing 50% of  the wages of employees registered with companies until the latter can  return to self-financing. "Without such support from the government,  the most important sector of the RA economy will be left alone in the  face of an unprecedented economic crisis, and the rapid reduction of  jobs and the decline in capacity will undoubtedly become prolonged,"  the study says.

To recall, in connection with the cornavirus pandemic in Armenia, a  state of emergency was introduced on March 16, which, according to  the latest decision of the country's government and the Commandant,  will last until August 12. In connection with the state of emergency  in the country, restrictions were introduced, which were gradually  eased. However, the country still has restrictions on the carriage of  passengers by road, rail and air, which is why it is not yet possible  to talk about the restoration of the dynamics of inbound tourism. 

The government has developed an extensive list of anti-crisis  measures to mitigate the economic and social consequences of the  coronavirus, however, according to representatives of the tourism  sector, the support mechanisms proposed by the state are not  effective specifically for the tourism industry, which, in their  opinion, needs a separate approach.