Brazil’s tourism industry has suffered major losses with about 80 per cent of accommodation services and all its parks and tourist attractions closed. Without public support the sector could lose around US$ 6.2 billion, as inbound arrivals to Brazil could decrease by 50 per cent in 2020.
At the end of March, lock down measures in France resulted in the closure of 75,000 restaurants, 3,000 clubs and 40,000 cafes, affecting 1 million employees who have been placed under technical unemployment.
In the United Kingdom’s tourism-reliant areas, 80 per cent of workers in the hotel and food industries were reported to be on furlough schemes and about a third of jobs were at risk in the longer term.
In the United States, 2020 is projected to be the worst year on record for hotel occupancy leading to staggering job losses. Since the beginning of the crisis nearly 1.6 million hotel workers have been laid off or furloughed and 3.9 million hotel-supported jobs have been lost.
Worldwide airlines and tourism businesses are adjusting their staffing levels, while many companies have frozen all hiring, potentially undermining their capacity to fill key positions once the crisis is over. Other companies have put their employees on temporary unemployment benefits or are working with the unions to draw up strategies to avoid layoffs, which often require reductions in working time.
Evidently, negative impacts of Covid-19 leaves people for jobless. We are suddenly at stuck of underemployment due to the shutdown of service industry. Currently, we do not know when the pandemic ends. But we know what we can do to protect ourselves out of unemployment and other negative social issues. The tourism industry will help people to reduce stress through its world of work. The following analysis will address how to solve employment crisis.
Tourism and its supply chain
Tourism will create non-stop services even the world in crisis. Because tourism comes from human needs. It is existed accompany with our life. Tourism is occured at its value chain including main work and supplemented work. Let’s check tourism value chain, we can know where we are to recover our employment life.
Responses from Employees
Self employed. Startup a private teaching service from practical experience is a feasible solution. A bartender teaching online in youtube chanel or any social network is the way to jobless response. Also, we can write a book or manual or guideline of career history to share with immense audiences. It brings opportunity for us to become famous. The tourism market where the buyers and sellers come from together is diversified. No matter how it is traded via physical or distancing, we can make a deal to our network. Volunteer – not only will it keep you busy and help your sense of purpose and wellbeing, volunteering offers the opportunity to develop new skills and connections. Self-study, update your Curriculum Vitae so it’s ready for when new opportunities arise. Improve skills especially digital skills for tourism.
Responses from Governments
Brazil: The Ministry of Tourism provided a targeted tourism credit line for MSMEs available through 17 financial institutions registered with the General Tourism Fund, Fungetur. The government has facilitated the proportional reduction of wages and working hours as well as the deferral of social security payments during the state of emergency. Informal workers and unemployed microentrepreneurs, who meet the criteria of the Single Registry for Social Programs from the Federal Government (Cadastro Unico) will be eligible to receive emergency aid in the amount of 200 Brazilian reals per month for three months.
Canada: The Business Credit Availability Programme allows the Business Development Bank of Canada and Export Development Canada to provide targeted support to MSMEs in hard hit sectors such as tourism. The work-sharing programme provides wage subsidies to workers who agree to reduce their normal working hours in response to the crisis. Wage subsidies are provided to eligible small employers for a period of three months.
Egypt: The government has announced a stimulus package with 50 billion Egyptian pounds earmarked for the tourism industry. It aims to keep hotels running during the crisis. Rent payments are suspended for tourism and food service businesses at state-controlled landmarks. The Government extended an existing cash transfer programme to cover an additional 100,000 families. This programme benefits informal workers, including many in the tourism sector. The Minister of Antiquities and Tourism announced that a hotline will be set up for tourism sector workers to register complaints about unfair dismissals
France: The Ministry of Labour is enacting measures to support tourism MSMEs. The Ministry has underscored the importance of avoiding layoffs and has announced reforms regarding partial unemployment.
Italy: The Government has allowed businesses in the tourism and hospitality sectors to suspend social security and compulsory insurance payments as well as VAT payments for the month of March. Seasonal workers in the tourism sector whose employment has been involuntarily terminated received a compensation of €600 for the month of March. Pursuant to the adoption of the Cura Italia decree law, the Government in Italy has extended the cassa integrazione (support fund) to cover all sectors of the economy. The Government will pay 80 per cent of employees’ salaries. Additionally, parental leave has been extended to 15 days in March and April, while those caring for dependants with disabilities are entitled to 12 days paid leave per month.
Thailand: The Government Savings Bank will sponsor soft loans to tourism-related operators. Travel vouchers will be available for five million local travellers to promote domestic tourism. The government also launched skills development programmes for self- employed workers. Wages will be subsidized for workers who have lost their jobs due to the pandemic and related measures. The Tourism Ministry will return 1.4 billion Thai baht in deposits to enterprises registered with the Tourism Department. Each company will receive 50-70 per cent of the deposit back.
UAE: The Ras Al Khaimah Tourism Development Authority created a dedicated financial incentive package for non-government owned tourism enterprises including hotels up to four stars, tourist attractions, and golf courses. Utility payments have been temporarily reduced and hotels and hotel apartments benefit from six-month payment deferrals of connection fees for water and electricity. Additionally, all tourism licenses and fees have been waived for six months.
Source: ILO
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Hanni TranDirector of Asia, Global Tourism Forum
