COVID-19: Polish hospitality industry faces big difficulties

According to a November survey conducted by the Polish Economic Institute (PIE), forty percent of hospitality companies say they are in a difficult or very difficult financial situation due to the COVID-19 pandemic.

According to a November survey conducted by the Polish Economic Institute (PIE), eight percent of hospitality companies are planning to close their businesses. However, 28 percent of firms from the industry considered their situation to be good or very good.

PIE's analysts noted in their report that in the face of the current difficult economic situation and uncertain future, 45 percent of companies want to carry on with what they have been doing so far while one third want to introduce changes only in selected areas of their operations.

Experts pointed out that the fear of an uncertain future causes most companies to adopt a "wait-out" strategy, while "it is important to take unconventional measures to limit the company's development barriers and (...) obtain alternative sources of income". They also added that "for the survival of companies (...) the rationalisation of employment, using unconventional solutions, such as temporary transfer of employees to promotional activities in order to attract new customers in the future, is of great importance.

According to PIE, in order to keep companies that suffered the most during the lockdown, "it will be important to take advantage of the protective mechanisms announced by the government. Entrepreneurs can count on, among others, exemption from social security contributions and co-financing of jobs from the Guaranteed Employee Benefits Fund.

The survey was conducted on a sample of 100 companies from the hospitality industry, using the CATI method, in November 2020.