Hospitality. The hardest part is still to come!
The news weren’t good for hospitality and tourism in the last month. Bad thing is - it’s getting worse!
While the lockdown has cost most hospitality venues all their savings, most are living with a big minus, many closed forever winter is coming and time is against us.
Hotels and restaurants operating with limited seats and heavy restrictions can’t recover their losses, must be happy once they break even or continue loosing. We will unfortunately see more closures.
The ones that rely on Summer season - like Spain with minus 97,7% tourism this year - will struggle to survive. The next summer season is far away.
“The reduction in travel will further cripple airlines and hotels already reeling from the travel restrictions imposed during the pandemic. That means more layoffs and staff reductions.”
(AUGUST 19, 2020 BY SCHIFFGOLD)
Ocean cruise ships have still the hardest time ahead. While more ships are being send to the scrap yards the rest might survive or not.
River Cruises are operating on 50% occupancy - but these are only the ones that are operating at all. Most companies like Viking, Scenic and many others are closed for good until at least 2021.
You can add this to the litany of signs that the damage done to the economy by the government shutdowns are far deeper and far-reaching than most people want to admit. Businesses are shutting down and bankruptcies are at a 10-year high.
And a tsunami of defaults and bankruptcies are on the horizon.
AUGUST 19, 2020 BY SCHIFFGOLD)
It is the staff and crew that face the hardest times. The small restaurant and hotels! The uncertainty, hopelessness is and will be in the future a big mental problem.
“In yet another sign that the economy isn’t poised for a quick bounce-back even if researchers produce an effective COVID-19 vaccine, many companies are considering permanently laying off furloughed workers and taking other steps to make cost-cutting measures permanent. And the government “help” is only making things worse in the long-run.
(AUGUST 19, 2020 BY SCHIFFGOLD)
Unconditional Basic income is not wanted by the rich
Events are non existing, artist not performing, traveling - thus spending - at an all time low. The winter will be hard - the spring harder. We need support each other and make the best of a situation that isn't our fault but our destiny. Unconditional Basic Income would be the best solution especially for countries like Germany or other strong economies that can easily afford it. Unfortunately even citizen who would benefit from it are scared mainly because of lack of knowledge but also envy - not wanting the other one have as much as only they deserve plays a big role. It plays in the hands of the super rich and big cooperations who don’t have to take the hands of the throats of the small people.
Author: Stephan Busch, Academic Director at the State University for the Humanities Moscow RGGU, Faculty of Tourism & Hospitality and the Swiss International University earned his Master Certificate in Hospitality Management from Cornell University, USA. He has a diverse experience in launching operations, business development and service training- for hotel and cruise companies in Asia, Europe, Canada and Russia.