70% of the gastronomic hotel sector foresees the bankruptcy of their companies

70 percent of hotel and gastronomic establishments are at serious risk of bankruptcy in the event that the coronavirus quarantine forces them to remain closed.

The conclusion is part of a study carried out by the Gastronomic Hotel Business Federation of the Argentine Republic (Fehgra), which analyzed the impact of Covid-19 in the sector.

The survey results show that in the hotel sector the year-on-year drop in activity was 83 percent in April; from May 83; and a 79 percent drop is projected in June, with the Autonomous City of Buenos Aires being the most affected region.

“65 percent of hotel entrepreneurs will not be able to continue with their company if the current situation continues over time, of which 75.7 percent consider that it will be closed in a period between one and three months, “the entity said in a statement.

According to Fehgra, 80 percent of employers in the sector have requested help to pay their employees’ wages through the ATP program, and even so only 41.7 percent have been able to fully pay the wages for April .

In addition, 72 percent stated that they were unable to pay the rents; 33 percent were unable to pay for services; and 19.8 did not pay taxes in full.

Almost half of the businessmen in the sector, in April and May, requested bank financing, although only 53 percent received it.

In the gastronomic sector, the year-on-year drop in activity was 84 percent in April; 84 percent in May; and a 73 percent drop is projected in June. The most affected category of establishment is that of restaurants, while the most affected region is Patagonia.

75 percent of gastronomic entrepreneurs will not be able to continue with their company if the current situation continues over time, and 62 percent of them consider that it will definitely close its doors if they are not allowed to return to work before August .

“Many hotel and gastronomic businessmen foresee the bankruptcy of their companies if the current situation continues,” said Graciela Fresno, president of Fehgra. “These data support the request that we have been making to the national authorities so that a law that declares an urgent sanction the Economic Emergency of the sector ”, he said.

From Fehgra recalled that hotel and gastronomic activity is the second sector in importance measured by the impact on the rest of the economy, and that in the last 15 years it has increased by 77 percent the jobs.