Bars and restaurants are cash-flow depleted and must be offered the same level of government support as hotels, the Association of Catering has said, as a number of establishments are on the brink of closure.
The second wave of COVID-19 infections had once again “knocked out” the industry, following a summer which showed signs of recovery thanks to the government voucher scheme, association secretary Matthew Pace said.
He said the pandemic had accelerated the downfall of certain establishments, which were already struggling in a labour-intensive industry, with those in prime sites also burdened with “unsustainable rents”.
Bars and restaurants were hit with government-mandated closures in March, before re-opening in May. The government subsequently announced the closures of bars again throughout November and December as the pandemic entered its second wave.
Surveys of ACE’s members put summer turnover at 65 per cent of the levels seen during the corresponding period in 2019.
However, since the third week of September to date, that figure had dropped to just 35 per cent, Pace said.
Further compounding matters for an industry notorious for its high staff turnover is the fact that the government’s COVID-19 wage supplement only covers workers who remained in the job since March, when the wage support was first announced.
Staff members brought in to replace those who have moved on since March are not covered by the wage supplement, Pace says.
“Most of us are still here today thanks to the economic support given by the government. Having said that, as an association, we have asked time and time again that the government kindly gives us the wage supplement in full, just like hotels…
“The feedback we are being given is that this will happen. The sooner we get this imminent support the easier it will be for us to survive.”
Pace said the rent and electricity subsidy announced by the government earlier this year provided a great boost, but these funds, which have yet to be paid out, were badly needed as the industry approached the peak shoulder months.
Prime Minister Robert Abela has declared he wants Malta to be back to business as usual by May, after the COVID-19 vaccine has been rolled out.
Asked whether this target was realistic for the industry, Pace said he is optimistic people will once again start hitting bars and restaurants once the vaccine programme has been implemented.
Acknowledging that the industry is very much in survival mode at the moment, Pace said all those who do survive will definitely reap the benefits.