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ORDERED: The Storting has ordered everyone to wear a mask in the Storting room. This also applies to the Prime Minister. Photo: Ørn E. Borgen
The tourism industry fears an abrupt halt when Prime Minister Erna Solberg (H) strongly discourages traveling to Norway as well and limits social contact. On Friday morning, the government and social partners met for an emergency meeting.
– This can be the death sentence for Norwegian tourism, if massive aid packages don’t arrive quickly. It’s about the jobs of 170,000 people, Astrid Bergmål, Virke Reiseliv’s Senior Director, tells VG.
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In the Storting on Thursday, the government received criticism from the opposition that austerity measures and relief measures do not come at the same time.
Bergmål says the industry was not at all prepared for the new measures the government announced on Thursday:
Unnecessary domestic travel should be avoided and everyone should stay home as long as possible.
VIRKE: Astrid Bergmål is Senior Director at Virke Reiseliv. Photo: Heiko Junge
– It is reprehensible that the government toughens more without at the same time proposing more measures, says the director of Virke.
Trade and Industry Minister Iselin Nybø (V) met with the organizations on Friday morning. She confirms that the new infection control measures come at a price for the business community:
– These are measures that will unfortunately affect companies and businesses. Therefore, we are considering proposing more measures to compensate the business community soon, and we will provide more information on this next week. I understand that the situation is desperate, said Minister of Commerce and Industry Iselin Nybø in a written statement to VG.
Crisis since March
Tourism has already been hit hard since March, when the flow of tourists from abroad came to a complete halt and many thousands of employees were laid off. It hit tour operators harder.
The industry’s first crisis package lasted the summer. In September, there were new talks with the government, which recently launched a new aid measure covering 60 percent of fixed costs, valid until February 2021, according to Bergmål.
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Covers some fixed expenses
– This was not enough for companies that were financially sound until last winter, but have burned a lot of capital to stay alive since then. The government has made a very limited definition of what is fixed spending and the coverage rate is too low, he says.
The industry is also calling for restructuring and development measures, so that they are ready to start over when possible.
The new aid package was to be sent to the Storting next Friday. Now Erna Solberg says she will be postponed until Tuesday to adjust today’s new austerity measures.
– This is brutal for an industry that is already on the verge of collapse. By discouraging domestic travel and reducing the number of people who can gather at events, the last remnant of activity opportunity is closed for the tourism and experience industries. says Bergmål.
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Before the summer, there was also a wage compensation scheme in place to keep people on the job and avoid layoffs. But Bergmål says he overlooked the need:
– It didn’t work, she says.
– I felt that the business was like playing bingo. They had to take in people and then apply for wage subsidies. The companies were thus with all the risk. Very few have been willing to accept it, says Bergmål.
– Our goal is to ensure that as many viable companies as possible recover from the crisis, answers Iselin Nybø.
