MercoPress. South Atlantic News Agency

Uruguayan leisure businesses need help after poor summer season due to Omicron

Viera agreed some measures were needed to preserve jobs

Uruguay’s hotels and restaurants will seek compensation from the Government for their losses during a summer season which was between “mediocre” and “dire,” as tourism was nowhere near pre-pandemic levels, it was announced.

Jorge González, of Uruguay’s Gastronomic and Hotel Union (Sughu) described the season as “disastrous,” while Francisco Rodríguez of the Association of Hotels and Restaurants of Uruguay (AHRU) said it was “mediocre.”

Both groups met “to find common ground and take joint proposals to the government,” González told La Diaria. One of the measures to be sought could be the extension of unemployment insurance, it was explained.

According to González, the drop in tourist activity “directly affects the sources of work due to unemployment insurance.”

Rodríguez agreed the increase in COVID-19 infections due to the Omicron led to “a significant drop and in some destinations almost “a standstill” in the entire sector.

In Punta del Este, one of the world’s most exclusive beach resorts, hotel occupancy in January stood between 60% and 65%, which also heralds dire times for the winter.

The guilds would also seek a “zero rate VAT, so that companies can afford costs which they cannot afford today,” it was explained.

”Then we can discuss OSE (water), UTE (electricity) and gas rates,” the businessmen also pointed out as they highlighted the high quality and professionalism of their staffs, who provide “a service that differentiates us from others in the region,” and who needed to keep their jobs. Labor unions representing these workers have met earlier this week with Tourism Minister Tabaré Viera, who allegedly told them he was waiting from instructions from Economy Minister Azucena Arbeleche to advance on concrete steps.

Arbeleche, however, said she did not have any measures on the table yet for this sector. But Rodríguez said they were confident a response from the government would be found.

Viera also said in a radio interview that the authorities were still to finalize a detailed report on this season’s results, but pending the release of such a document, the opinions of those involved was being collected.

He explained that following a start which was “acceptable” at the beginning of the season, things got complicated with Omicron’s arrival.

He also said he agreed with some of the measures requested, such as an extended unemployment insurance to defend jobs, as well as tax exemptions, which in his vew, were necessary at least during the first half of the year.

Jorge González, of Uruguay’s Gastronomic and Hotel Union (Sughu) described the season as “disastrous,” while Francisco Rodríguez of the Association of Hotels and Restaurants of Uruguay (AHRU) said it was “mediocre.”

Both groups met “to find common ground and take joint proposals to the government,” González told La Diaria. One of the measures to be sought could be the extension of unemployment insurance, it was explained.

According to González, the drop in tourist activity “directly affects the sources of work due to unemployment insurance.”

Rodríguez agreed the increase in COVID-19 infections due to the Omicron led to “a significant drop and in some destinations almost “a standstill” in the entire sector.

In Punta del Este, one of the world’s most exclusive beach resorts, hotel occupancy in January stood between 60% and 65%, which also heralds dire times for the winter.

The guilds would also seek a “zero rate VAT, so that companies can afford costs which they cannot afford today,” it was explained.

”Then we can discuss OSE (water), UTE (electricity) and gas rates,” the businessmen also pointed out as they highlighted the high quality and professionalism of their staffs, who provide “a service that differentiates us from others in the region,” and who needed to keep their jobs. Labor unions representing these workers have met earlier this week with Tourism Minister Tabaré Viera, who allegedly told them he was waiting from instructions from Economy Minister Azucena Arbeleche to advance on concrete steps.

Arbeleche, however, said she did not have any measures on the table yet for this sector. But Rodríguez said they were confident a response from the government would be found.

Viera also said in a radio interview that the authorities were still to finalize a detailed report on this season’s results, but pending the release of such a document, the opinions of those involved was being collected.

He explained that following a start which was “acceptable” at the beginning of the season, things got complicated with Omicron’s arrival.

He also said he agreed with some of the measures requested, such as an extended unemployment insurance to defend jobs, as well as tax exemptions, which in his vew, were necessary at least during the first half of the year.