The Alliance for Tourism Diversity (ATV) on Short-Time Work Benefits

Hamburg/Unterhaching, January 25, 2022 (w&p) – Infection rates are skyrocketing, not only in Germany but worldwide. Travel is severely restricted, and there is no sign of a return to normalcy. Even in the third year of the pandemic, the tourism industry remains severely impacted by the crisis. One pressing issue is the duration for which short-time work benefits can be claimed. This is limited to a maximum of 24 months. Many businesses fear they will have to lay off employees if this limit is not adjusted. The Action Alliance for Tourism Diversity (ATV), which brings together 28 industry associations, is renewing its call to preserve jobs during the ongoing crisis by extending the duration of short-time work benefits.

“In about 40 percent of our businesses, employees have been on short-time work since the start of the pandemic,” said Petra Thomas, spokesperson for the coalition. “This means 24 months during which many bus tours, long-distance trips, or winter vacations could not take place at all or only to a very limited extent. If the period for receiving short-time work benefits is not extended, companies will face the choice of either taking the economic risk of bringing employees back to full-time work in an uncertain situation, or, after two years of hope and anxiety, laying them off after all.” The consequences would be severe, she warns on behalf of the ATV, and not just for the affected employees and businesses. Petra Thomas: “This sends a devastating signal right now. The shortage of skilled workers in tourism is already very severe, and forced layoffs will further exacerbate the problem. We therefore call on policymakers to create an appropriate exemption for particularly affected sectors such as tourism and to extend the duration of short-time work benefits.”

The ATV spokesperson emphasizes that the tourism industry is suffering yet another setback due to the spread of the Omicron variant of the coronavirus. “The fact that, of all times, many companies are now reaching the previously set maximum eligibility period of 24 months for short-time work presents them with an enormous economic challenge that many can no longer afford,” Petra Thomas affirms.

The Tourism Diversity Action Alliance is calling for an extension of the eligibility period and easier access to short-time work benefits. “If all employees have to be brought back from short-time work starting in March or April and companies are responsible for 100 percent of personnel costs, they will lack the revenue needed to cover salaries in full. The summer season was not strong enough for the affected businesses to build up sufficient reserves. For many businesses, the winter season has more or less been a washout. The situation is more than uncertain, especially in light of global developments and the staggered waves of the pandemic,” said Thomas.

According to the ATV, a wave of layoffs looms as the 24-month short-time work period comes to an end. Companies now need support and planning certainty to determine whether they can retain their employees. “The tourism industry is already facing a growing shortage of skilled workers. The pandemic has exacerbated this shortage. Employees have moved to other industries because revenue has plummeted by over 70 percent compared to 2019,” emphasizes the tourism expert.

“Short-time work benefits have helped preserve many jobs over the past 24 months. Discontinuing this government aid program now would mean letting the travel industry down just as it’s about to make a final push,” said Petra Thomas.  “Policymakers must not forget that the tourism industry has been affected by the pandemic far more severely and for a longer period than other sectors. That is why it is imperative to find an industry-specific solution for these particularly hard-hit businesses and not leave people in the tourism sector out in the cold.”