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.
