About 50 percent of hospitality establishments opened, prices remain the same for now

Thousands of hospitality workers, waiters, bartenders, chefs, and others are returning to work after a month and a half since the implementation of measures to prevent the spread of the Covid-19 epidemic. On the first day of work, Monday, about 50 percent of hospitality establishments in Croatia opened, emphasizes Vedran Jakominić from the National Association of Hospitality and the Association Voice of Entrepreneurs.

– The first rough estimates from the field 'say' that this morning about 50 percent of the total of about 35 thousand hospitality establishments in Croatia opened. Not all hospitality workers managed to prepare their establishments for opening, some due to lack of funds, some due to health protection measures during the 'lockdown', and neither did those who work seasonally nor the more expensive restaurants. However, we expect that with the normalization of the Covid-19 situation in the coming weeks, the others will also open. Their business will depend on demand and traffic, in which we currently do not have higher expectations, except to 'keep our heads above water' – Jakominić emphasizes in an interview for Hina.

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Even he, as a hospitality worker, has not yet managed to arrange everything in his establishment for opening, but he believes, as do the associations he represents, that the measures of the headquarters can be fulfilled and praises the state for having 'played well' around this so far.

However, due to physical distancing measures and others, including the arrangement of tables spaced one and a half meters apart, hospitality establishments, both small and large, are actually returning to operation with about half the capacity (tables, chairs, and others), and this is likely to remain so until further notice, so no higher traffic can be expected, especially not as it was before the closure measures. For working hours from 6 AM to 11 PM, he says that hospitality workers are satisfied.

Prices mostly remain as before

Considering that foreign tourists still cannot come to Croatia, hospitality on the Adriatic is currently focused only on domestic guests. Jakominić emphasizes that domestic guests account for about 50 percent of the total annual hospitality traffic and are always important. Regarding prices, he says they are a difficult topic and will be determined individually.

– Since prices in hospitality are 'elastic', even a ten percent increase can mean a ten percent decrease in traffic, I believe everyone will be cautious about potential price increases. It should also be noted that hospitality workers have invested certain funds in disinfectants, gloves, masks, plastic menus, price lists, and others to adapt their spaces to these new conditions – says Jakominić.

He also mentions estimates that hospitality investments for adapting to measures ranged from about ten to more than a thousand kuna, but that prices will mostly remain as they are, regardless of difficulties, because citizens' purchasing power is also declining due to this crisis and no one aims to have no guests.

Everyone will strive to adhere as best as possible to the prescribed measures, including hygiene measures, which, according to Jakominić and the hospitality association, are already at a high level in Croatia, including kitchens and sanitary facilities and other areas in hospitality establishments, and this is now being reinforced, along with employee education and visible signs throughout the establishment.

About 120 thousand employees secure until June 1

According to Jakominić, about 120 thousand people are employed in Croatia's hospitality sector, which is more than half of all those employed in the tourism and hospitality industry in Croatia. He also states that these people are secure with jobs and salaries until June 1, as measures from the state and local authorities for economic assistance are still in effect until then.

– The &#39honeymoon&#39 lasts until the beginning of June, and then it will be seen whether some measures will be extended or not, and how traffic in hospitality will move so that salaries and other expenses can be paid. Hospitality workers do not expect profits this season or this year, and salaries will depend on traffic. I am not sure it will be so much that we will not have to reduce salaries, but we hope there will not be any layoffs, although unfortunately there will not be any new hiring – says Jakominić.

He also emphasizes that it is extremely important for hospitality workers to be able to obtain favorable loans and notes that, although strongly announced by HAMAG-BICRO and other institutions, their realization has been slowed down and they are difficult to obtain.

– The realization of these loans that were promised within 48 hours is now delayed, and only 13 percent of that line has been realized. Without this, we will not be able to save our businesses, and banks have also stopped lending, and it is already happening that some hospitality workers do not have money to pay for electricity. This is a problem, just like imports. Domestic food and drinks should be encouraged in establishments and consumption of that, as more money will 'rotate' in the country – concluded Jakominić.

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