A man builds a straw hut on the beach at Chivarari in Corsica. – Pascal POCHARD-CASABIANCA / AFP
The partial unemployment scheme for the tourism sector, particularly affected by the coronavirus pandemic, which was due to end in September, will be extended until December, Secretary of State for Tourism Jean-Baptiste Lemoyne announced on Wednesday.
This recourse to partial activity for companies in the sector (hotels, restaurants, tour operators, events, etc.) had been introduced during confinement, to help them cope with the stoppage or decrease in their activity. In May, the government announced the extension of the system until the end of September. “Partial unemployment continues on the same terms until September, it will be extended until December, we may see the terms depending on the state of the sector”, announced the Secretary of State for Tourism Jean-Baptiste Lemoyne at the microphone of France Info.
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Loans and tax deferrals
“But what is clear is that tourism professionals need long-term support; for some it will be a blank year. We will continue to be at their side, ”he insisted. “We’ll look at that in September. In principle, yes, we will continue until December ”. Jean-Baptiste Lemoyne recalled that the government had “put 18 billion euros in a position for support and investments” for the tourism sector, measures announced in May and which include partial unemployment measures, loans guaranteed by the State, social exemptions or tax deferrals.
“Nearly 9 billion euros in loans guaranteed by the State” have already been granted to companies in the sector “to cope with all cash flow tensions,” said the Secretary of State. The sector as a whole represents more than 8% of French GDP and some 2 million jobs.
20% of establishments threatened
“We will have to lengthen the timescales for help and support for our profession, otherwise there are a lot of hotel doors that will close. It will be an economic cataclysm for our tourism industry, ”Jean-Virgile Crance, president of the National Group of Hotel Chains (GNC), told AFP on Tuesday.
“Partial unemployment stops in September, we asked to extend it until April 2021 at least. We will have to look at extending the exemption of charges and on the financial part, it will be necessary to extend the bank maturities, even if they are postponed at the end of the financing, otherwise many establishments will not get by ”, according to him. “With Umih”, the main federation of hoteliers, “it is estimated that more than 20% of establishments could be in a virtual bankruptcy situation by the end of the year, if the economic situation continues”, a he also estimated.