Tourism employers urge Parliament to act so that ERTEs do not become layoffs

The presidents of Ashotel, FEHT, FTL and Asofuer appear in the Regional Chamber and demand urgent measures. "The Canary Islands are experiencing the worst economic and social situation of all time"

August 31 2020 (15:41 WEST)
Updated in August 31 2020 (16:12 WEST)
Canary Islands hotel employers' associations intervene in Parliament
Canary Islands hotel employers' associations intervene in Parliament

The presidents of the tourism business associations of the Canary Islands −Ashotel, FEHT, Lanzarote Tourist Federation (FTL) and Asofuer−, Jorge Marichal, José María Mañaricúa, Susana Pérez and Antonio Hormiga, respectively, appeared this Monday in the Tourism, Industry and Commerce Commission of the Parliament of the Canary Islands to present the "serious situation" facing the main economic sector of the Islands and "urge the implementation of a specific plan developed 'ad hoc' for the sector and prevent it from falling".

"There is no plan B," the business representatives assured when asked by a deputy. The presidents of the business associations stated in their speeches that if they do not act urgently, "many of the ERTEs will become EREs and these, in turn, will become business closures", and that there is a risk that the unemployment rate in the Islands will reach 40% this winter. "Let's see what government plan can manage that unemployment figure," they asked. Before their speeches, the four thanked the Commission for the opportunity to be there presenting the situation and "trying to create unity of action to save the sector that today generates 35% of GDP (up to 60% direct and indirect) and 40% of employment in the Archipelago".

Marichal, also president of the Spanish Confederation of Hotels and Tourist Accommodation (CEHAT), was the first to speak to explain what could happen if action is not taken now, before the arrival of the winter season. "We have not come here to find culprits, but to join efforts and propose measures that we believe we must carry out," he said. "The situation is getting much more complicated every day that passes," said Marichal, who indicated that currently the hotel plant open in the province of Tenerife is around 25% "and if Germany decides today or tomorrow to veto us, we will see a zero tourism again in the coming days," he added. "We want proposals to come out of this commission to recover the path of tourist activity."

Tourism, "a patient in the ICU"

“The situation we are experiencing is very clear: we have a patient −tourism−, who is in the ICU, affected by COVID-19; he is sedated with the ERTE, he has been given some shock treatment, but he cannot continue to be sedated, he has to move forward. Therefore, we must first control the contagion curve and, once this is done, apply very specific measures: health controls at airports and preparation of flexible ERTEs specifically adapted to the different cases experienced by companies in the sector, which is very varied," explained Marichal, who insisted to the representatives of the parliamentary groups on "leaving tourism out of politics."

For his part, José María Mañaricúa highlighted the "good work" carried out by various areas of the Government of the Canary Islands, from Tourism to Employment and Health, but added that many of the measures, "which proved to be positive, have not been conclusive, because we have seen that the issuing markets continue to close their doors to us." For this reason, he urged listening to the tour operators to see what they demand in order to maintain a fluid traffic with the Islands. "The ERTEs have been positive, but we must ask that the Canarian labor authority manage or decide which ones are due to force majeure," he stated. He also highlighted that the ICO credits are insufficient, because "considerable rents continue to be paid for establishments that remain closed." Finally, he considered it important that the city councils get involved and contribute with the exoneration or reduction of municipal taxes and fees; "it makes no sense to continue paying a garbage fee with the establishment completely closed," he gave as an example.

The president of Asolan and the Lanzarote Tourist Federation, Susana Pérez, in Parliament
The president of Asolan and the Lanzarote Tourist Federation, Susana Pérez, in Parliament

Susana Pérez commented that the health crisis brought an unprecedented situation to the tourism industry, "with massive repatriations and total closure of our establishments, unprecedented events for the tourism sector, an unimaginable scenario that has jeopardized the economic engine of the Archipelago." Pérez highlighted "the enormous effort made by the business associations together with the Government of the Canary Islands to prepare for the reopening in the months of May and June with the Canary Islands Fortress Plan, as well as the tireless work of companies to adapt to the new health measures and train their staff." "We know that the Government was already proposing these health controls at origin and destination to gain the trust of our issuing countries, but the truth is that we still cannot achieve it, while around us we see how Madeira or Cyprus implement them and achieve safe corridors with the United Kingdom", she explained. "We have to put ourselves back on the starting grid and for this we need health controls for passengers," she added.

Finally, Antonio Hormiga stressed that the Canary Islands is experiencing "the worst economic and social situation of all time". "The uncertainty of our main sector is absolute, the incidence of the disease worsens and the scenario is increasingly gray", said Hormiga, who assured that "there is no room for particular or partisan interests and that a common effort is necessary." The message, he repeated, "is very clear: safe corridors, tests on entry and exit, flexible ERTEs..." Regarding Fuerteventura, the majorero business leader pointed out that the situation "is quite complicated, because the dependence on tourism is absolute, with 70% of the island's GDP." For this reason, he urged political representatives to embrace Asofuer's motto, "open mind, open, collaborative, creative minds, that allow us to recover the sector." "We demand loyalty from all institutions and collaboration to be able to move forward urgently," he concluded.

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