The president of the Confederation of Portuguese Tourism (CTP) introduced that he was “deeply concerned” concerning the summer time, contemplating the financial penalties for the sector. He claims that 90% of journey firms within the nation at the moment have “zero sales”.
Francisco Calheiros, after the assembly of the employers’ confederations and Prime Minister António Costa, on the São Bento Palace, spoke concerning the circumstances for reopening the Portuguese financial system, after probably the most important part within the battle towards the COVID-19 pandemic.
“In March, we had a 50% drop in all activities. In April and May, more than 90% of the tourism companies will have zero sales,” stated the president of CTP at a press convention.
“We’ve already had the Easter problem, but we’re deeply worried about the summer season,” he stated.
According to the president of the confederation that represents the Portuguese tourism sector, if the present numbers of the battle towards COVID-19 are confirmed on the finish of this month, “calmly and safely – with protective equipment – we will return to activity”.
“In tourism, we have to be creative. For instance, we have to accept that only part of the capacity can be occupied, and that breakfasts have to be served in the bedroom and not in a common room,” he added.
Another bleak prediction comes from the economist Vítor Bento. According to him, the nation will face a “major recession” this yr, brought on by COVID-19. It stays to be seen how lengthy it would final and when the financial restoration comes.
The economist acknowledged that the restoration won’t be the identical in all sectors, nor will it happen on the similar time, which additionally doesn’t profit the Portuguese financial system.
“It’s almost certain that international tourism will take a long time to recover and, in Portugal, as we are now accustomed to depending a lot on tourism, we will be particularly affected,” he warns.
But there’s one other attribute of this disaster that doesn’t assist the restoration: it occurs all around the world on the similar time.
In earlier crises, just like the final one, “there was a problem, but the rest of the world was growing. And we were able, first with exports, and then with tourism, to overcome the internal demand restraint more quickly. This time, that doesn’t exist,” explains the college professor.
To make sure that the situation doesn’t grow to be much more critical, the economist considers it important for firms to take care of all or a part of their staff’ wages. If that doesn’t occur, Vítor Bento says that the shock of demand could also be extra acute.
Admitting that there shall be a discount in earnings as a result of wages won’t ever be on the similar stage, the economist believes that “if companies have the resources to continue paying wages, the effect may be smaller. But if unemployment goes up, “the effect will be greater”. Faced with that actuality, the state can have an vital function.
For now, the economist believes that the measures taken, whose fundamental mission is to offer credit score to firms, “will work”.
“I don’t think it’s bad that the first step was the credit lines”. After all, “if the first measure is non-performing loans, companies no longer have the incentive to adapt,” he explains.
To face the financial penalties of the pandemic in Portugal, the federal government has adopted a number of measures, together with credit score strains price three billion euros, with a state assure, to assist firms to deal with monetary difficulties.