Tourism sector in dire straits: lower turnover and employment and not much hope for the future

TTimes
By TTimes October 15, 2020 11:21

Tourism sector in dire straits: lower turnover and employment and not much hope for the future

The Albanian Tour Operators Association- (ATOA) conducted a survey with tour operators and travel agencies, to analyze and present the situation of this category of businesses in this very difficult year affected by two major crises, the November 2019 earthquake and the pandemic. The comparison is made with 2019, which until November can be called a normal working year.

The questionnaire was completed by 43 businesses, or roughly 21.5% of the official market of 200 tour operators and travel agencies and is the first of its kind made by the tourism industry itself.

The main results confirm the deteriorating condition of the sector and highlight the need for support. ATOA has sent an official letter to the government to come to the aid of this category of businesses including individual guides and tourist transport. 

Among the main problems, the survey reveals that almost 10% of these businesses have temporarily suspended NIPT; around 60% of businesses have made in 2020 only a fraction of the turnover of the last year 0-10% of 2019 figures. 

49% have lost up to 20,000 Euros, 21% over 100,000 Euros, 16% have lost 20,000-50,000 Euros and 14% have lost 50,000-100,000 Euros this year.

The total number of employees in 2019 from the surveyed businesses was 284 employees while the same businesses kept in 2020 only 131 employees or 54% less. The group of travel agencies or small businesses with from 1 to 3 employees in 2019 was about 49% while the group of tour operators or large businesses with 4-35 employees was 51%. In 2020 the large business group shrinks by 4-13 employees to just 30%. So almost half of the employees have been fired mainly from large businesses.

86% of businesses do not expect any activity in the remaining 2020 period.

To the question "how do you see 2021" 74.5% of businesses answered "unclear and gloomy" and 21% hope that work will resume in the spring of 2021.

To the question "how long do you plan to keep the business bankrupt if you do not get help from the government and the pandemic continues" 40.5% of respondents answered "by the end of 2020" and 33% hope "until the middle of 2021".

When asked what help they expect from the government to survive, the majority, 37% answered that they want support for salaries and insurance of existing employees, about 24% seek support with grants, and 20% seek support for payment of office rents.

The distribution of the number of small and large businesses surveyed is 44% and 56%, respectively.

TTimes
By TTimes October 15, 2020 11:21