The blow of the pandemic on employment in tourism is heavy

of Vicky Kourlibini

43 thousand jobs were lost in 2020 due to the pandemic in hotels, while only half of them, ie 22 thousand, were filled last year.

In particular, from 133 thousand employees that counted Greek hotels in 2019, the record year for Greek tourism with over 18 billion revenues and 30 million foreign visitors, decreased to 90 thousand in 2020, to reach 112 thousand in 2021.

The data were presented in the context of an event for the presentation of the “I Support HORECA” alliance for sustainable development of the hospitality and catering sectors in Greece.

As shown in the chart below, 27% of hotel employment was suspended in 2020.

According to the data presented, the losses in the overnight stays were also large. 138.6 million overnight stays were recorded in 2021, reaching 60% of the levels of 2019. In 2020, overnight stays of foreign visitors were only 64.2 million from 236.5 million in 2019. The decline reached 73%.

The effects of the pandemic on turnover are significant, with side effects until 2021.

In terms of accommodation consumption, last year consumption for accommodation services reached 3.8 billion in 2021, of which 1.9 billion was domestic consumption and 1.8 billion was tourism expenditure. In 2020, the cost of accommodation services was 1.72 billion.

The catering and hospitality industries (HORECA), as noted at yesterday’s event for the presentation of the alliance, are the most dynamic sector of the Greek economy.

According to the analysis and estimates of IOBE for 2021 – based on the data of the National Accounts – they contribute a collective added value of 9.8 billion euros, which corresponds to more than 5.5% of the country’s GDP, while 112,000 companies operating in the sector generate approximately 552,000 direct jobs, which correspond to 11.9% of employment in Greece.

Catering and hospitality account for 3.6 billion in salaries and contributions, as well as taxes amounting to 1.181 billion, an amount that corresponds to 2.5% of the state tax revenues.

They ask for the VAT to be returned to the accommodation at 6%

Tourism entrepreneurs have called for a resumption – a reduction in VAT on accommodation to 6% – as was the case until 2015 – or otherwise harmonization with the average of EU countries, in order to strengthen competitiveness.

Indicatively, the VAT on accommodation in Cyprus amounts to 9%, in Portugal to 6%, to Spain to 10%, to Italy to 10% and to Turkey to 8%.

Also the reduction of VAT on catering to 6% in order, among other things, to reduce the negative effects of inflation and the particularly high costs caused mainly by the excessive increase in energy prices.

“We are going through an era where uncertainty is rising sharply due to the chain effects of the war in Ukraine with the first and foremost surge in inflation and energy costs, while at the same time we are still facing the unprecedented crisis of the COVID-19 pandemic in 2020. world tourism.

We have difficult challenges ahead of us and as we continue the struggle for survival, we join forces and become helpers and supporters of every effort that will strengthen the hospitality industry, upgrade our tourism product and improve the competitiveness of the Greek Hotel.

The reduction of the taxation of the tourist package in the levels of the other Mediterranean countries and the reduction of the VAT on accommodation to 6% – is a constant request of the hospitality sector to stimulate the competitiveness of the market “noted the president of the Panhellenic Hoteliers Federation Grigoris Tassios .