The fifth wave ‘ruins’ the summer for the self-employed and reduces commercial and hospitality income by 60%


28/07/2021 – 19:48

The fifth wave of the pandemic that is already shaking all Western economies comes to Spain at the worst moment, when the opening to the arrival of tourists in summer is boosting the levels of economic activity and increasing hiring. But this new setback is already noticeable in the recovery thermometer, which in this pandemic is being the service sector. Thus, the freelancers of the hotel and trade, will have lost in this first half of the summer at least 60% of revenue registered in the same period of 2019. Specifically, this situation is suffered by more than seven out of ten (75%) self-employed workers, according to the figures collected by UPTA, the entity representing the group.

From the association they describe the economic situation as “deadlock”, since the fifth wave is preventing economic recovery and billing in hospitality establishments and shops is still 60% lower than in the summer of 2019.

“The restrictions that many autonomous communities are suffering due to Covid-19 are making the worst omens come true and that the self-employed feel how the summer passes without improving the situation of their businesses,” they lament from UPTA just when they start to notice the Withdrawal of hiring of holiday stays and services due to the recent recommendation of key countries for the good summer performance such as Germany and the United States not to travel to the Peninsula or the islands due to the strong rebound in infections in recent weeks. A fact that, apart from the measures adopted by neighboring countries, is forcing the autonomous communities themselves to withdraw the de-escalation and regain certain restrictions.

In addition, from the association based on the survey conducted among its members and 76% report a decrease in billing Average with values ​​close to 60% with respect to 2019, 17% indicate that they have lost less than 30% of invoicing with respect to the same period of 2019 and only 7% recognize a total recovery of invoicing.

For this reason, UPTA has transmitted to the Ministry of Inclusion and Social Security the need to extend the extraordinary cessation of activity for those self-employed whose activities, due to epidemiological conditions, are being seriously affected. A negotiation that will be carried out between the associations representing the group and the Government after the holidays, in the month of September, and with which this scheme of extraordinary benefits will be extended at least until the end of December of this 2021.

“The number of new hires in the Reta is a trompe l’oeil that confuses the reality that the self-employment market is going through. The growth is due more to a breakdown of the traditional employment market than to the real need to undertake “, laments Eduardo Abad, president of UPTA, who believes that this situation” does not have a solid foundation to establish businesses and most of them disappear before reaching the first two years of life. ”

Letana of direct aid

To this is added that four months after the Congress of Deputies gave the green light to the fund of direct aid for SMEs and the self-employed of 7,000 million, the reality regarding the distribution of the money transferred to the autonomous communities is far from the forecast of the level of expected coverage. Specifically, 60% of these funds are still withheld in the autonomous estates, about 4,200 million euros. So that only 2,800 million have come in recent months to alleviate the needs of the workers of the group most affected by the restrictions applied in the toughest moments of the pandemic, and which are also affected by temporary measures in times of rebound.

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more

Leave a Reply

Your email address will not be published.