Six business associations in the Algarve came together to "face the serious economic situation" in the region, calling for the mobilization "of all entrepreneurs in defense of the economy, companies and employment".
ACRAL (Association of Commerce and Services of the Algarve Region), AHETA (Association of Hotels and Touristic Enterprises of the Algarve), AIHSA (Association of Hotel and Similar Industries of the Algarve), CEAL (Confederation of Entrepreneurs of the Algarve), NERA (Business Association of the Algarve Region) and ANJE (National Association of Young Entrepreneurs) are the subscribing associations of a letter in which they defend the need for «urgent measures» to respond to the crisis caused by Covid-19.
The immediate consequence in the region, they recall, was the halt “in the activity of the main economic sector – tourism”.
«The abrupt drop in the flow of tourists, in addition to the effects on accommodation, had consequences in all sectors of economic activity in the region that respond to the needs of tourist demand: from the outset in restaurants, but also in trade, cultural and leisure activities , services, transport, equipment, etc. The business universe of the Algarve registers 70 thousand companies in all sectors of activity, of which 20 thousand are companies (INE)».
This situation led to falls in "activity of companies in different sectors of the order of 70, 80, 90%, generated unemployment and stopped the hiring of workers for the summer", say the associations.
However, everything got worse, "dramatically, as a result of the mandatory quarantine imposed by the United Kingdom, in relation to tourists coming from Portugal", they add.
It is “a profound blow to the expectations of businessmen and the region's economy, the consequence of which could lead to thousands of insolvencies. The collapse of these tourist markets, especially the British one, defrauds not only the expectations of attenuation of the losses of the companies, accumulated since March, but also the hope of facing the low season in better conditions».
Therefore, the associations "appeal to the Government to intensify its political action, in order to quickly change the decisions of those countries to impose quarantine on tourists from Portugal and in particular from the Algarve".
As for the recovery plan for the region, announced by the Minister of Economy, it is "good news", but its implementation "is urgent".
The Algarve "due to the characteristics of its economy and specificity and structure (significant weight of tourism, existence of other indispensable sectors, dominant business structure of SMEs, employment typology, high seasonality), needs a balanced and consistent economic structure" .
The region “needs a strategic vision that points out lines of economic diversification, taking advantage of endogenous resources, in a perspective of a modern and competitive economy, based on sustainable development, also taking into account the new framework for economic recovery recently proposed by the Union. European Union'.
That said, the associations say they will request hearings to present to the Government, in particular to the Minister of Economy and the President of the Republic, these lines of work and a package of proposals with concrete measures.
The six associations will also stimulate a debate among entrepreneurs in the Algarve about these lines of work, with the aim of enriching and transforming them into action.
Finally, the associations propose to "cooperate with other entities in the region, such as "regional institutions and public bodies, municipalities and the University".
Subscribers:
ACRAL – Association of Commerce and Services of the Algarve Region
AHETA – Association of Hotels and Touristic Enterprises of the Algarve
AIHSA–Association of Hotel and Similar Industries of the Algarve
CEAL- Confederation of Entrepreneurs of the Algarve
NERA – Business Association of the Algarve Region
ANJE – National Association of Young Entrepreneurs
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