Tourism activity is at a significantly lower level than before the pandemic, Virke’s August survey shows. One in three companies is in danger of going bankrupt.
Virke’s member survey figures show that there is a need for more help for those who are still affected by restrictions. This mainly applies to the tourism and aviation industries.
“If there is no more help after October 1, it will lead to unnecessary bankruptcies. People who have been laid off for a long time will lose their jobs,” Virke Reiseliv leader Astrid Bergmål stated.
The summer season is usually high season for the industry, but according to the results from August, one in three companies in the tourism industry operates at less than 20% capacity compared to before the virus outbreak. Tourism companies also have major liquidity challenges, and many are at risk of bankruptcy.
“Not the right solution”
“With such figures, it is obviously not the right solution to end all support this autumn,” Bergmål said.
“Travel restrictions such as requirements for quarantine and travel advice for countries outside Europe are the main reason why the tourism industry is still not up and running.
“If the authorities now end all aid to the tourism industry in the last phase of the crisis, before they have a real opportunity to operate as normal, the results will be brutal. It is, therefore, positive that more and more parties are now speaking out in favor of extending support schemes,” she concluded.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayNews
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