shocking number of final closings


The sector presented a new radiograph of the collapse that shows the activity from the Covid-19. Consider it to be the worst crisis in history

The loss of blinds and the loss of jobs rule between restaurants and hotels. From March to this part, according to organizations in the sector, more than 3,800 startups closed their doors permanently and the prognosis is that the number will intensify between now and the end of the pandemic. Since the emergence of Covid-19 in Argentina to this part, about 46,400 jobs were cut as a result of the established isolation and the collapse of consumption.

The perspective is more than black: actors of gastronomy and accommodation estimate that this year it will conclude with 120,000 formal jobs destroyed given the health and economic context.

According to details provided by FEHGRA, the federation that brings together all the gastronomic and hotel activities in the country, the crisis that companies are going through is the worst in the history of the sector.

“In May, 3,870 companies were lost in relation to February this year and 46,400 fewer jobs were registered in April than in January, with projections that up to 120,000 registered jobs will be destroyed in the year and almost 280,000 total jobs“, is detailed via a report to which he agreed iProfessional.

“The fall in hotel activity in June was 94.9 percent, the number of hotel companies that forecast the close to continue the current situation reaches 75 percent -in June, 65 percent of the companies stated that they were in this situation- “, adds the work.

According to FEHGRA, only 23 percent of hotel entrepreneurs were able to pay their total wages for June. “21 percent paid the Christmas bonus in full, 27.7 percent paid utilities, 17.9 percent paid taxes. Only 10.8 percent were able to pay providers, and only 1.5 percent were able to collect their outstanding bills,” indicated from the entity.

As for gastronomy, activity showed a drop of more than 80 percent during the month of June. “The number of gastronomic companies that foresee the closure of continuing the current situation reaches 74 percent“states the report.

“21 percent of the gastronomic entrepreneurs were able to pay the total wages for June. Only 12 percent paid the Christmas bonus in full. Only 7.1 percent were able to fully pay taxes, services 16.9 percent, rent 12.1 percent, and social security contributions 10.8 percent. 23.7 percent paid suppliers and only 2.4 percent were able to collect their outstanding accounts, “he completes.

It is from this scenario that the gastronomy and hospitality businessmen redoubled the request for a law that establishes the emergency of the entire segment.

Specifically, they request new assistance from the State in the payment of wages, a reduction of public service tariffs and deferral of their maturities. Too, zero rate credits and flexible for working capital, tax exemptions and VAT reduction on services provided by the sector.

Actors in gastronomy and accommodation estimate that this year it will end with 120,000 destroyed jobs.

Lost capacity

In a recent dialogue with this medium, Graciela Fresno, president of the federation, stated under figures such as those exposed, “the country will lose more than half of its hotels in three months’ time

“The businessman who can resist the most in this context at most has the financial back to resist for another three months. The pandemic forced to close practically all accommodation. In Buenos Aires, for exposing an exceptional case, about 20 hotels are still open with the purpose of detaining people in quarantine. The rest, by sanitary provision, must be kept closed. And this is the sector in general since March, “he commented to iProfessional.

only 23 percent of hotel entrepreneurs were able to pay their total wages for June

Only 23 percent of hotel entrepreneurs were able to pay their total wages for June.

“In Capital Federal we have cases of hotels that have already closed definitively. Those who lowered blinds but wait for the return of activity do not know how much longer they will be able to resist in this situation of uncertainty. Official aid did not reach all employers in the sector, so that the difficulties multiplied for the majority of the ventures “, indicated the directive.

“We are not questioning the effectiveness or otherwise of the sanitary measures that have been taken. We accompany the quarantine. But if there is no complement with economic measures, most of the sector will have disappeared in a matter of months. Let’s think that there are hotels that were not assigned ATP, reason why they had to continue paying in some way of their own the employees’ salary, “he added.

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