Page 31 - bon-dia-aruba-20200401

locAl Wednesday 1 april 2020
A31

The corona crisis and the horeca

ORANJESTAD — The Amigoe fea- opinion that there were too many
tured an article on March 30 titled restaurants in Aruba. More tourists,
“Hotels are cutting staff without a more restaurants but the cake is
legal basis”. The following article now divided among more restau-
is based more how the restaurant/ rants and the prospects in mak-
bar business are coping with the ing money or creating a reserve is
corona crisis. there for a few.
Back to the questions. Can Mom
After reading the Amigoe article & Dad operators still afford to pay
it is inevitable that some picture their staff without GOA aid? The
could be created of horeca (ho- answer will not surprise you is nega-
tels/ restaurants/ cafes) explorers tive. Wy did this sector not create
that for the least unexpected and reserves? The answer is because it
slight scenario are dispersing staff. is continuously taking water to the
Now mind you that the corona ocean as we collectively have to
pandemic is not slight in size: In the pay for the public debt. The re-
USA alone 3 million people lost their serves that restaurants face is the
jobs from one day to the next. Our unexpected breaking down of a
F&B (Food & Beverage) sector is dishwasher, replacing an ice ma-
now waiting for the Aruba Govern- chine or re-printing menus after
ment (that is really taking her time) the GOA decided that BBO taxes
to reveal an emergency plan. Wat should be included in the price
can we expect from FB operators featured on the menu. Low tax
and what can we not? compliance of those businesses
AHATA recently published a long not paying their fair share is put-
list of tax increase measures that ting extra weight on those that do
were introduced since 2013. From pay their taxes. Those in arrears are
this list we can deduct that time af- in finding approval for next years Mom & Dad operators going to now being compensated with a
ter time the horeca sector was sur- budget that will include all opera- continue to pay staff salaries? Why discount as a stimulus package to
prised with “adjustments” that only tional expenses including staff. The did this sector not create reserves kick start the economy! Amazing
increased the cost of business. It is result of this exercise is the mainte- for a rainy day? To start off with the and only in Aruba!! Provided that
no surprise that under these never- nance fee for 2021. The timeshare answers, there is not one opera- all taxes were collected diligently
ending adjustments it has been sector still with about roughly 40% tor that was pleased closing their we would not be in need of an
quite challenging for the horeca of rooms inventory through their restaurant with the consequence emergency fund.
sector to create a reserve. The set-up is giving some security that of offering her staff an uncertain A last but very important question
fiscal measures which were intro- at zero occupancy at least the future. It hurts and hurts a lot and is one the restaurant employee will
duced lately as fiscal reform had staff salaries have been secured. there would be some light at the ask their employer: “What are you
no other intention to lower the defi- But even this sector after a budget end of the tunnel if there would going to do for us”? And my an-
cit of the GOA. A GOA that rela- has been approved is facing in- be some certainty that this would swer: I am going to ask the GOA
tively does very little or not enough creased cost of business surprises of last one or two months. Due to the in making a substantial contribu-
to lower her own expenses. The fiscal nature where the Ground Tax mega corona crisis in the USA I am tion of the GOA and 5000 public
F&B sector of about 5000 employ- (Grond belasting) for a timeshare of the personal opinion that this servants (maybe even 50%) which
ees divided over roughly 500 es- resort like for example CL was Afl. still could take months and months can be placed in the emergency
tablishments has come to a halt 170,000 which was not budgeted. and extend into 2021. Securing the fund. From this fund we can per-
and is in limbo which income she Take along the beach tax and the staff salaries for months to come haps do better than paying the
could generate in May & June and unexpected expenses in favor will would mean that not one F&B employees Afl. 950 per month.
beyond. The sum of Afl. 950 that have to be compensated with the business would have any (small) re- And we have ample time now to
has been mentioned as financial unexcepted fiscal adjustments. For serve left for the start-up. This would set out for a good plan (with less
aid for the F&B employees by the sure is that the time share sector is result in the restaurant closing pre- bureaucracy) to kick start the is-
GOA. The public servant’s sector better able to cope with the crisis mature and that according to the land’s economy when all is going
with approximately another 5000 compared to the transient sector GOA is not an option. Roughly 200 back to normal. Hopefully in an
employees still has 100% job secu- which from one week to the next restaurants opened their doors organized manner because when
rity and (at least) a full income. Ac- registered close to zero occupan- between 2010 – 2020 in Aruba of we all F&B operators start up at the
cording to the Prime Minister every- cy and dependent from income… which the majority experiencing same time, we may risk of many
one should make a sacrifice but it which at this point is ZERO, not just small profit margins. Several based of the operators not being able to
would serve GOA to translate this in Marc but for months to come. on the margins closed within a make ends meet and we would be
in deeds instead of words. How social is the F&B business? Or year. Why do otters survive? “This is back to square one.q
A positive development we find in how anti-social? Wat can this sec- wat we are doing is the answer of
the timeshare sector. In the next tor expect now aside from a few the majority and we hope that the Jan van Nes
few months timeshare resorts will exceptions of drive through, and next year is better”. Former AHATA President AF&BA
meet with their Board of Directors take-out is CLOSED? Are these CEO Jim Hepple was always of the