IF COMPANIES CAN OPEN UP, WHY DON’T THEY?

As we know, quarantine has become more flexible and tourism businesses are allowed to operate in some provinces. So why aren’t hotels, restaurants and attractions opening? Economic crisis, low demand and high taxes are forcing employers to keep their businesses closed because opening them would mean losing more, even if they are in debt now.

“The inversion to enable the hotel is really high. It needs a deep cleaning and there are broken pipes. The projection is that we’ll be able to open four or five days at month. Numbers do not add up.” Said García Cainzo, owner of Delvino Boutique Hotel, in Salta. “It’s distressing because we are accumulating debts. We as employees have more risks than employees because we need to deal with fixed costs.”

“I have to pay Gross Income Taxes and other taxes. The government doesn’t forgive those fees even if we are closed. In April I asked the Bank for a loan and I wasn’t given it. Today the business doesn´t bear the costs” said Ivana Gutiérrez, owner of Entre Negros, restaurant of Merlo, San Luis. “When people go out, they spend really little money and going out for dinner isn’t a basic necessity. With three tables per day I’m not able to cover even the light expenses” she added.


REFERENCES

Cinto, C. (9 de 8 de 2020). La Nación. Obtenido de https://www.lanacion.com.ar/turismo/paradoja-muchos-sitios-turisticos-es-mas-caro-nid2414186


This article has been written by FRECHEL Luna, GAROMPOLO Facundo and SERRAIOCCO Micaela.


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