Hotel industry is experiencing dramatic slumps due to Corona

Dusseldorf Just how devastating the corona virus affects the German hotel industry can be seen from a look at Fairmas’ performance graphics these days. In Berlin, where the market research company determines daily occupancy rates for 260 hostels, the values ​​fluctuated between 70 and almost 100 percent in April last year. This year, however, the graphic curve can hardly be found. With values ​​of five and ten percent, it sticks almost to the X axis.

The statistics hide dramatic conditions. The Black Forest luxury and golf hotel Öschberghof, which is subordinate to the heirs of Aldi founder Karl Albrecht, almost turned into a ghost hotel on March 18, like many others. Since April 1, all 400 employees have been on short-time work with a zero percent share of work.

“The economic consequences are considerable,” complains even Motel One founder Dieter Müller, whose hotel chain is one of the champions in the German market. His company is expecting “a massive disruption in business development and a sharp drop in sales in the coming months”. Guido Zöllick from the German Hotel and Restaurant Association (Dehoga) even assumes that every third business is on the verge of bankruptcy.

Like Germany’s largest budget chain Motel One, almost all hostels sent their employees on a short-time basis. It makes the order of most of the federal states that overnight offers in Germany can only be used for “necessary” and expressly not for tourist purposes.

Booking.com in danger

The federal and state governments do not want to review this regulation until April 30th. Very few in the hotel industry believe that there will be a fundamental change. In addition, major events are prohibited in the houses at least until August 31.

Even the multi-billion dollar online broker Booking.com, whose headquarters are located on Amsterdam’s canals, says the Dutch government is asking for support. The world’s most expensive tour operator is said to be hit so hard by the pandemic that it would have to resort to layoffs without help.

The infirmity of the hotel industry in Germany began before the epidemic broke out across Europe. Already in January and February, when the corona virus kept almost exclusively Asian guests away from the German hotel market, hoteliers complained about an average occupancy rate of only 51.6 percent – a decrease of 20.6 percent compared to the first quarter of 2019.

In March things went downhill again. According to Fairmas, the occupancy rate dropped to only 29.3 percent last month, initially due to the numerous trade fair cancellations, and from mid-March then additionally due to the massive restrictions in numerous federal states.

Since then, visits to islands such as Sylt, Rügen or Usedom are no longer permitted, and hotels in these holiday regions had to close completely. In cities such as Cologne and Bonn, too, the administrations imposed an opening ban, which they later eased again later on under judicial instructions.

In most federal states, however, the following still applies today: Tourists must stay outside, only business travelers are allowed access. Of the 1,742 houses observed by the market researcher Fairmas, 40 percent have now temporarily shut down.

2.4 million employees

It’s about a lot. In Germany alone, the hotel and restaurant association has 223,000 “catering establishments” that together employ 2.4 million people. According to the German Tourism Association, tourist demand ensures direct gross value added of EUR 105.3 billion annually, which is almost four percent of the total German value added. 35.8 billion euros of this came from the overnight accommodation industry alone.

Extrapolated, the German vacation areas in March and April missed sales of 15 billion euros for gastronomy, day trips, sports, entertainment, leisure and culture – in addition to nine billion euros due to the lack of overnight trips.

As an urgent aid measure, the Dehoga is now demanding a seven percent lower VAT rate in the catering industry. “With seven instead of 19 percent VAT, the not inconsiderable loss of sales could be compensated a little because of the distance regulations that would then have to be observed,” said Association President Zöllick. The reduced rate would also help to be able to repay borrowings. A rescue and compensation fund for the hospitality industry is also on his list of claims.

He is apparently heard by the Federal Minister of Finance. In an interview with “Welt am Sonntag”, Olaf Scholz now promised hoteliers and restaurant operators financial support. “Of course, we look closely to see if and where we need additional help,” he said. “Above all, we have an eye on those sectors for which things are not getting off to a quick start.” The hotel and restaurant industry is certainly one of them.

More: Dorint boss fights in court for the existence of the chain

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Coronavirus: 75% of restaurants and hotels closed and many companies are considering not reopening | Coronavirus

In an online press conference to present the results of the study “covid-19 – Impact on tourist activity”, AHRESP’s secretary general, Ana Jacinto, said that, of the 75% of companies closed, almost 70% concern the area of tourist accommodation and 33% to catering.

The same survey, carried out between the 1st and the 3rd of April, and which counted around two thousand responses, also indicates that 50% of the surveyed companies intend to move towards the simplified lay-off, one of the government measures to support companies .

Of that 50%, about 70% admitted not being able to pay wages this April, if, however, the Social Security does not make the timely delivery of the planned support, which must be paid on the 28th. Of the group of companies that said they intend to proceed to lay-off, 75% said that it is a measure to apply to all employees. their workers.

Almost 80% of AHRESP’s member companies said they did not use financial support and, of the 23% who did, two-thirds used the Turismo de Portugal support line, which is aimed at micro-companies.

Of the companies that responded to the survey, 60% said “clearly that the helplines are not suitable to their needs and indicated as a priority the support to non-refundable funds ”, added Ana Jacinto.

As for redundancies, 94% of the companies have not yet dismissed any workers, however 30% say that they were no longer able to pay wages in March and 80% estimated a total lack of invoicing in April and May.

“The impact on employment is tremendous, the impact on billing is tremendous and the scenario only confirms what AHRESP has been saying,” said the association’s general secretary. “There is an urgent need for serious measures to directly support the treasury of companies so that they can survive and maintain their jobs ”, warned the official.

For AHRESP, companies must be supported with non-refundable money, to avoid over-indebtedness. “There is no other alternative, because companies will not bear” the “huge costs” that they will have to pay when the crisis is over, he stressed.

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The Fed will earn up to $ 4 trillion in business loans to save the economy, says Mnuchin

Treasury secretary Steven Mnuchin said Sunday that the Federal Reserve will play a key role in lending funds to companies affected by the coronavirus.

“By working with the Federal Reserve – we will have up to $ 4 trillion of liquidity that we can use to support the economy,” Mnuchin said on Fox News Sunday.

“These are large-scale loan programs … we can leverage our equity capital by working with the Federal Reserve,” he said.

The treasury secretary said the plan is broad to help small and large businesses “get through the next 90-120 days,” he said.

Mnuchin said he thought the bill would end on Sunday and will be ready for a Senate vote on Monday.

The account would also include:

• small business maintenance loans designed to help businesses retain workers. This will cover about half of the workforce, said Mnuchin. Payments will include two weeks of cash flow and some overheads. Loans will be forgiven if workers are not laid off.

• Checks for Americans. The average allowance for a family of 4 will be $ 3,000, the Treasury Secretary said.

• Improved unemployment insurance for people fired from coronavirus.

Mnuchin said that if the closure of the American economy were to last longer than expected, Congress would approve another bailout package.

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Airbnb accumulates hundreds of millions of losses due to the coronavirus

Airbnb Inc. is considering raising capital from new investors as the home sharing giant struggles with growing losses due to the devastating impact of the coronavirus pandemic on its global business, according to people close to the company.

The pandemic also threw Airbnb’s plans to make public this year into chaos, and the company’s board of directors and investors are divided on the best way to go, according to people familiar with the matter.

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Online gaming stands ready for casino closure

With casinos closed and many Americans confined to their homes, the online gambling industry is looking to expand in the United States

An industry group, iDevelopment & Economic Association, is pushing states to allow online casino games to replace missing revenue from temporarily closed casinos, including exploring how governors can use large emergency powers to quickly allow online casinos to operate, group leaders said. Online casino games include virtual slots and roulette, along with poker, played for real money.

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The New Orleans restaurant kicks off Coronavirus insurance coverage litigation

The first wave of early insurance coverage disputes began as arrests for coronaviruses spread across the United States.

An important seafood restaurant in New Orleans’ French Quarter, Oceana Grill, asked a state court to confirm that its policy with London’s Lloyd’s would cover revenue lost due to civilian actions with restrictions on coronavirus.

The…

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“Everyone is responding to this crisis” – here you can donate and volunteer

The coronavirus novel is an unknown enemy that is rapidly reshaping daily routines as schools close, employees work from home (if they have that luxury) and shared pleasures like sports games and cinema are darkened.

The revolt has many people rushing to meet their needs by stocking up on supplies for potential quarantines. But some groups will experience this public health crisis more than others, including the elderly, workers who cannot call sick and people who cannot pay for quality health care or simply cannot access it.

“The most vulnerable of us will be the hardest hit and take the longest to recover,” said Regine A. Webster, vice president of the Center for Disaster Philanthropy. “Remember that there will be physical health, mental health and the economic impacts of the pandemic long after the initial outbreak.”

The most important action that individuals can take is to stop the spread of the virus by washing their hands properly, practicing “social distancing” and quarantining themselves sick, public health officials say.

In addition to these measures, here are some other steps to target resources where they are most needed.

Get medical supplies where they are needed most

The Direct Relief Humanitarian Relief Group has provided personal protective equipment including masks, gloves and clothing in China since January. Last week, he shipped oxygen concentrators to China, said Direct Relief spokesman Tony Morain. They are devices that coronavirus patients can use to help them breathe at home, rather than being connected to a ventilator in a hospital. They are needed because hospital beds are scarce in China, said Morain.

China is about six weeks ahead of the United States, Morain said. While joint transmission has slowed, there are still patients on coronavirus therapy who need help breathing. Direct Relief recently purchased around 500 oxygen concentrators for US patients and pledged $ 2 million to help nonprofit community health centers in the United States prepare for the outbreak.

“Everyone responds to this crisis, one way or another, whether it’s about protecting their family or themselves,” said Morain. “In the worst case, we see the best of people.”

You can make a donation to the Direct Relief coronavirus response here.

Volunteering with meals on wheels

Meals on Wheels, which offers meals to older people who cannot leave the house, says it is anticipating an increase in demand during the epidemic. The elderly are particularly sensitive to the new coronavirus and health officials recommend people over the age of 60 to take additional precautions, which may include staying at home. However, such isolation can have long-term detrimental effects and Meals on Wheels provides fundamental social interaction for many of its customers.


‘In the worst case scenario, we see the best of people.’


– – Tony Morain, spokesperson for the Direct Relief Humanitarian Aid Group

Some Meals on Wheels chapters are looking for healthy volunteers who can be on call to make deliveries during the coronavirus epidemic. Many chapters also keep in touch with remote seniors through “phone reassurance” programs. To volunteer in your area, find your local wheeled meal supplier here.

Donate money to a reputable nonprofit

Philanthropists and corporations around the world have so far paid in around $ 1.3 billion to deal with the new coronavirus crisis, according to nonprofit research group Candid. The largest donors to the United States were the Bill & Melinda Gates Foundation, which pledged up to $ 105 million from Microsoft
MSFT,
+ 14.21%

co-founder Bill Gates and his wife.

But you don’t have to be a billionaire to make a difference. Charity Navigator and CharityWatch charity rating sites have lists of controlled charities operating around the world to address the epidemic, including Lutheran World Relief, Heart to Heart International and Doctors Without Borders, which is working to evacuate the refugee camps in Greece at risk of becoming explosion zones. The Center for Disaster Philanthropy suggests donating to groups focused on “WASH” ​​- water, hygiene and hygiene.

Support your local food bank

Americans are emptying the shelves of non-perishable stores as they prepare for the possibility of self-isolation. Stocks have been so intense that some food banks have seen a significant drop in donations from retail grocery stores, said Kathryn Strickland, network manager of Feeding America, a network of 200 food banks and 60,000 food handouts and food programs at national level. Feeding America has set up a COVID-19 response fund and is working to create an inventory of emergency food crates for distribution to food banks if needed.

While volunteering in person at a food bank may not be recommended as people practice social removal, Strickland recommends calling one in your area to see what their needs are.

“There are still ways you can support the food bank while you’re not physically in the food bank – you can donate online, raise awareness by sharing food bank messages on social media and support support at the federal level,” said Strickland .

Donate blood

The American Red Cross is urging healthy people who feel good about donating blood or platelets.

“As coronavirus fears increase, the low participation of donors could damage the availability of blood in hospitals and the last thing a patient should worry about is whether life-saving blood will be on the shelves when he needs it most,” he said. said Chris Hrouda, president of Red Cross Blood Services. There is no evidence that this new coronavirus can be transmitted through blood transfusions, according to the Red Cross. Find a donation site or blood sample near you here.

Help people experience homelessness

Homeless people face significant risk from the coronavirus novel, said Rick Brown, a spokesman for the National Health Care for the Homeless Council. They have poorer overall health, often suffer from sleep deprivation and often have pre-existing conditions that leave them with weakened immune systems, he said. In addition, they are less likely to be insured.

“For this reason, they are at significant risk – far more than they actually are for passing COVID-19 to people with healthy immune systems, like many people with housing,” said Brown.

He recommended contacting local homeless shelters and homeless services organizations to find out what they need most now. The National Coalition for the Homeless has asked cities to provide handwashing stations for people in homeless camps during the pandemic and recommended that all coronavirus tests and treatment be free for everyone.

“This is greater than any person or a person’s ability to help – it really is a failure of politics,” said Brown. “This crisis illustrates the weaknesses of our health and housing systems.”

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Should I go on a cruise while the coronavirus is spreading? Cruise lines offer free cancellations for agitated travelers – and big discounts for tempting others

Have you planned a cruise? If so, should you cancel due to the worldwide spread of the coronavirus epidemic? If not, is it a good time to go? After all, cruise ship companies are launching deals starting at $ 300 for week-long trips after a string of bad news related to COVID-19.

But is it enough to get on board given the current climate around the coronavirus?

Worldwide, there have been 105,940 COVID-19 cases and at least 3,559 deaths since Saturday evening; 58,402 people worldwide have recovered, according to data published by the Johns Hopkins Whiting School of Engineering Center for Systems Science and Engineering.

While the number of new cases in China continues to decline, infection groups in Iran, Italy and South Korea remain on the rise. In the United States, 19 people have died, health officials said, and there are approximately 424 confirmed cases Johns Hopkins added.

See:Governor Cuomo declares a state of emergency in New York for coronavirus

The biggest threats to those thinking of a cruise are the prospect of being quarantined on a ship if a port refuses to allow the ship to dock and, of course, someone aboard positive tests and the virus that spreads between crew members and passengers.

The U.S. Centers for Disease Control and Prevention advise people not to cruise to or within Aisa. “Several destinations in Asia are experiencing outbreaks of new coronavirus infection,” said the CDC. “Cruise ship passengers are at greater risk of spreading infectious diseases from person to person.”

See also:Do I have to cancel my flight? Will recirculated air on an airplane spread the coronavirus? Here’s what you need to know before traveling

A Princess Cruises ship, the Grand Princess, gets stuck off the coast of California on Saturday after an elderly man who had sailed on the ship’s previous voyage died the new coronavirus last month. About 21 people tested positive for COVID-19 coronavirus-transmitted disease on the ship.

Another Princess ship, Diamond Princess, was quarantined from Japan for two weeks. Dozens of people tested positive for the virus and seven passengers on that cruise ship died, Japanese public broadcaster NHK said on Saturday. Princess Cruises did not respond to requests for comment.

Cruise ship travel is especially popular with families and the elderly. Younger children with a strong immune system have the lowest mortality rate compared to COVID-19, but those with a stronger immune system may be prone to spread the virus to those most at risk of dying from the disease.

Coronavirus has an estimated incubation period of up to two weeks. This can affect how quickly an outbreak spreads. If people die of a disease earlier, they are less likely to walk on the bridge, swim in the pool, eat in restaurants, and therefore less likely to spread the virus.

“The incubation period for SARS was typically 2 to 7 days, although in some cases it can last up to 10 days,” said the CDC at the time. Most cases of severe acute respiratory syndrome occurred between November 2002 and July 2003. “In a very small percentage of cases, incubation periods of up to 14 days have been reported.”

Passengers on board the MS Westerdam cruise ship with measured temperatures.

Getty Images

After several other high profile cases of cruising quarantined and stuck in the open sea, people are obviously nervous about cruise travel. Cruise companies have updated their cancellation policies to allow passengers to cancel and rebook travel on future dates.

• Carnival Corp.
CCL,
-2.58%
,
which owns Princess Cruises, allows passengers to cancel a trip without penalty between today and May 31, but must use their credits by March 31, 2021.

• Celebrity Cruises and Royal Caribbean
RCL,
-1.17%

they also allow travelers to cancel up to two days before departure between now and July 31, but must use their credits by December 31, 2021.

• Passengers on the Norwegian Cruise Line
NCLH,
-5.21%

you can cancel the scheduled trips two days in advance between today and July 31 and must use your travel credits by December 31, 2022.

• Disney cruise
DIS,
+ 1.13%

passengers may cancel voyages scheduled for navigation before May 31 with an advance of at least one day and must redeem their credits within 12 months of the original cruise date.

Passenger John Miller of Seattle, Washington, is overwhelmed with excitement by disembarking from the cruise ship MS Westerdam after being stuck for two weeks moored in February off the coast of Sihanoukville, Cambodia.

Getty Images

Disney, like most major cruise lines, has introduced precautionary measures for future navigation and warns passengers that they will not be able to disembark in some countries if they have recently visited or even stopped in a place where there has been a severe coronavirus outbreak.

Disney said all guests and crew members will be checked by a nurse for temperature before boarding. “Additional medical screening will be required for anyone with a temperature of 100.4º F or higher and may not be able to navigate with their travel team,” he added.

“If your cruise includes a stop in Nassau or Castaway Cay, keep in mind that the Bahamas will not allow anyone to disembark in any port in the Bahamas if they have been to China, South Korea, Italy or Iran in the last 20 days before arrival, “Disney Cruises said in a statement.

The company added: “If your cruise includes a stop in Jamaica, keep in mind that in addition to the above locations, officials will not even allow guests who have traveled to, from or through Singapore within 14 days of arrival to disembark. These guests will not be able to navigate. “

How COVID-19 is transmitted

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I am a financially bullied husband. My wife earns $ 500,000 – 5 times my income – and tells me to live in a camper van. Would I be entitled to anything if we got divorced?

My 15 year old wife does about five times what I do – about $ 500,000 a year – and she always has. She and I had an agreement, which obviously has long been forgotten by her, that her money would pay for household expenses and mine would pay for our enjoyment.

We eat out once or twice a week, usually around $ 60 each time, with the occasional meal of $ 200 to $ 300 three or four times a year, which I pay. We also usually take a vacation from $ 3000 to $ 5,000 a year, which I pay too.

The Moneyist: ‘What did he do with all the money?’ My dying husband cashed in his $ 700K life insurance and cleared his bank accounts

I swallow it with expensive gifts two to three times a year. He loves quality jewelry, but I love it and I love to make it happy. We have substantial savings (half of the six digits). Almost everything that comes from his earnings from our marriage. He had nothing to mention when we got married for the first time.

The problem is that we bought a new home a few years ago, when it still remembered our deal. The house is out of my economic reach. He refers to it as “his home” and started haunting me for half the mortgage payment and saying he pays for everything, so it’s all his.

The Moneyist:My mom filed for divorce. My father made the pensioner his mother and then killed himself. Now my mom and grandmother are cheering. Who is right?

I travel a lot for work and I bought a camper a few years ago to stay while I’m away. I pay for it, but she is excited to use it for trips and calls it “ours”. Every month I also pay for my vehicle, insurance and business insurance together with credit card balances.

Sometimes he threatened, telling me that I can go and live in my camper and she will take everything else. I don’t like being threatened and I just wonder how much I would be entitled to in Texas if I ever get divorced. We also have over $ 100,000 in the house.

Feeling financially bullied husband

Dear victim of financial bullying,

Your problems are about money and have nothing to do with money. There are so many other issues here: the way we speak, the spoken or unspoken alliance of mutual respect in this relationship has been broken, feelings of unwillingness in relation to perceived rights.

Sometimes, you have to risk getting away from something you appreciate to save it. You cannot allow this increasingly toxic “status quo” to continue because of your fear of being alone or your economic insecurity. You cannot save your marriage by ignoring the problems.

Your wife hasn’t forgotten your deal. He chose to forget it. You need a new financial and personal project to make this marriage work. If you both love each other and want to return to that place of respect, it’s worth a try.

The Moneyist: My stepfather and mother put together resources to buy a house. My mom died in 2003 and has just died. Her kids are selling their house – am I entitled to something?

I don’t know what he was thinking, but I will do my best. I guess she was full of resentment over the imbalance of income and the division of financial responsibilities agreed upon and decided that they no longer suited her. He has not just informed you of his change of heart.

You have a lot of discretionary expenses – jewelry gifts, expensive meals etc. – that you cannot afford. She has come to expect these gifts and, perhaps, she sees these gifts as a reward and / or a refund for what she sees as the shoulder of the lion’s share of the mortgage and other bills.

A better deal would be to live in a house that you can afford to split 50/50. This means dividing everything in the middle: the mortgage, public services and everything else. You can agree to deposit a certain amount into a joint bank account and keep the rest separate.

The Moneyist:My father-in-law’s business went south and my mother-in-law never worked a day in her life. How can I avoid supporting them?

Your traditional roles, some would say archaic, are typically rowdy. Your wife is the biggest gain. This is increasingly common, although men still tend to earn more than their spouses. But you’re trying to keep up with other older-style genre roles (expensive jewelry).

If your wife wants to live in a bigger house that you can’t afford, and you agree with that, you may agree to divide the mortgage and other bills as a percentage of your respective income. But he agrees to review this deal in a year. It may be that you move or agree to part.

You are eating and eating the cake. Your wife is enjoying the lifestyle she wants to get used to with her six-figure earnings, and you’re trying to keep up, enjoying the spoils of this relatively luxurious lifestyle. At least you’re sharing your 50/50 lifestyle.

The Moneyist: ‘He injected my father with ketamine, enough to kill him.’ My father died in hospital treatment and left almost everything to his nurse

But as your wife’s resentments have grown, your uneasy feelings have also increased. It’s time to see a financial therapist, a couple therapist, a financial adviser or all three. Put your cards on the table, talk about how you feel without judgment and allow your wife to do the same.

The worst that can happen is not you separate. At least, not if you’re both happier as a result. The worst that can happen is to live in this situation where your wife says cruel things and you either suck them and keep a frightening silence, or you say cruel things to your wife.

You live in a state of community ownership. Assuming that you have not signed a prenuptial agreement, all that you will both gain during your marriage will be divided into 50/50. This includes your joint savings accounts and your home. In conclusion: this has gone on long enough, my friend.

It’s time to bite the gold necklace and talk.

Do you have questions about inheritances, tips, marriages, family feuds, friends or any sensitive matters relating to manners and money? Send them to MarketWatch Moneyist and include the state in which you live (full names will not be used).

By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we can use your story, or versions of it, on all media and platforms, including through third parties.

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The Moneyist: My father left everything to my son. When I called the attorney for the will, my son got very angry. Now I need financial help. Do I have to ask him for money?

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Venice’s high tide has receded. Now tourism is running out.

VENICE – The coronavirus epidemic in Italy has added insult to the damage of Francesco Molinari. Its traditional Venetian wine bar had already suffered physical damage when in November the exceptionally high tides flooded the lagoon city. So, with business still limping, a new disaster has hit.

First, Chinese tourists disappeared in January after coronavirus hit their country. Tourism in Venice was already lighter than normal after the underwater images of the city led many people to stay away.

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