Algarve entrepreneurs «can't stand another summer like 2020». This was the result of an inquiry made by ACRAL – Association of Commerce and Services of the Algarve Region to its members.
Given the current situation, 88% of companies "answered that they were severely affected with accumulated losses in recent months, still evaluating the situation of their companies as very bad".
«Considering the year 2020 where there were high falls in revenue, in 2021 there was a worsening of the situation for 70% of respondents. The sharp drop in revenue is due to the low demand for products/services after the confinement given the drastic fall in demand», he adds.
Over the next 12 months, “72% of respondents do not foresee any improvement”. Moreover, “entrepreneurs had to adopt measures such as cost reduction and postponed/cancelled investments, one of the biggest consequences being the increase in the dismissal rate”.
According to ACRAL, «it is concluded that about 66,7% of respondents correspond to companies in which commerce is the main activity, 16% relate to Services and 16% to Hotels/Restaurant, with 92% representing micro-enterprises (companies with less than 10 employees)».
Regarding the restrictions decreed by the Government, “97% of respondents agree with the measures imposed in terms of health. However, their establishments were seriously harmed by the restrictions applied in their sectors of activity and, despite a large percentage being aware of the support provided by the Government and having joined, 94% consider that State support does not correspond to the needs».
Also: “73% of respondents estimate that this year's summer will be the same or worse than last year's summer. Algarvian businessmen reveal to be fearful and with great uncertainty regarding the approaching future, around 68% predict that the economic recovery will not take place before 2023».
Paulo Alentejano, president of ACRAL, says that, if “perhaps this year's summer is equal to or worse than that of 2020, the winter season could be extremely dramatic for the future of sustainability for companies in the Algarve”.
"In a region so different from the rest of the country, we need a response, from the Government, with different measures, to guarantee the survival of the Algarve's business fabric and to avoid, to the limit, a social crisis in the Algarve", he adds.
In view of the unsustainable situation that entrepreneurs are currently going through, ACRAL decided to challenge the municipalities to create a local support office for entrepreneurs, called “Cabinet SOS Empresas”, whose project was very positively received by the majority of municipalities.
in the county of Faro the first “Cabinet SOS Empresas” has already been opened. The service will be carried out in person at the store "Faro. We are All”, by appointment. To make an appointment or for more information: [email protected] | 919 195 563.
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