Thousands of small and medium-sized enterprises and workers are hanging on a tree for fear of what the next day will bring. When the danger to human life disappears due to the coronavirus epidemic, the interest will be fatally focused on the economic consequences and what the coronavirus outbreak will have left behind.
At present there are only scenarios and therefore there is no safe forecast, despite the support measures for companies and employees implemented by the government. The catering industry is one of the weak links in the midst of the pandemic and it is no coincidence that there are voices of protest from the entrepreneurs in the industry. According to data gathered by "Φ", the measures in force until December 31 affect about 5.500 restaurants, of which more than 1.450 are in Nicosia, 650 in the province of Famagusta, about 1.000 in the province of Larnaca, over 1.500 in Limassol and over 900 in Paphos.
An industry that employs thousands of people and has over 27.000. According to the data of the Statistical Service, the restaurants and taverns are among the largest employers in the sector having more than 12.400 employees while in the cafes the employees are over 4.500. It is worth noting that the measure of suspension of operation of catering businesses, concerns restaurants, taverns, cafes, pubs, snack bars and bars, cafes and restaurants within canteens and / or sports clubs, cultural clubs, clubs, associations, etc., with the exception their home delivery and takeaway services.
After 9 pm only home delivery is allowed. It is no coincidence that most of the installment suspensions per business sector (€ 1,8 billion) concern hotels and restaurants that have been dramatically affected by the coronavirus with a total of 728 affected borrowers.
About 350 gyms have been affected by the suspension measure, of which 130 are located in Nicosia, more than 50 in Larnaca, more than 110 are in Limassol. In the province of Famagusta and Paphos it is over 20 and 30 respectively. In total, the employees are about 700 people.
Even in the retail stores that have remained open the situation does not seem to be so good in terms of turnover a few days before the Christmas holidays. According to the latest data released by the Statistical Service for September, the retail turnover volume index decreased by 2,6% compared to the corresponding month of the previous year and reached 120,4 points.
The question is how many companies from all sectors of economic activity will survive while unemployment is currently restrained by the workers' support measures announced by the government.
Source: Philenews