Gastronomia is “falmission”, pandemic leaves over 14,000 workers without jobs

The Institute for Free Market Economics, (IETL) established by the Kosovo Economic Oda, has published the results of a research in this sector, money, over and after pandemic.

The executive director of this Institute, Besa Zogaj-Gashi, in an interview with Online Economics, says that during the time of emergency measures, only 2.3 percent of all the surveyed businesses have carried on through food distribution with a symbolic monetary circulation, while the rest have claimed that during these months their monthly circulation has declined to 100 percent.

We as an institution have received two sectors that are hit the most and which are of great importance to the economy. One research involves the Gastronomy sector and the other for the Patundity sector. As for Gastronomia, it has been done in co-operation with the Gastronomy Association in Pristina, the sample has been repressed, has an extension in all municipalities, and its owners, different establishments, discotheques, and all food parts” have been targeted.

“The goal is to identify how much pandemic has affected this sector, how much it has affected its liquidity. Based on these results, it turns out that because of government measures, about 97 percent of them have claimed no circulation and have stopped their activity, and only 2.3 percent of companies have had access to business activity, or were offered food services through distribution”, she said.

Zogaj has said this sector has been very important for Kosovo's economy, while saying that more than 14 thousand workers have been employed.

This sector has had a lot of significance in Kosovo's economy, because according to the survey results, the data is for 2018. There have been nearly four thousand companies in this sector, which in a way if we translate them into percentages, then there are 10.4 percent of the economy. Likewise, a very important source of economics, approximately 14,000 workers have been employed by contracts in this sector and if we translate them into percentages, then a 7.9 percent of employment has been met with the gastronomy sector”, he said.

The Institute for Free Market Economics (IETL) has recommended the Government of Kosovo to continue measures on tax release and labor subsidies, to have direct subsidies with mild criteria for qualifications, as well as subsidy of the rent, even in the coming months for tenants.

“over this period we've done research on what the practices of other countries are, but also adapting to our circumstances, we've given some recommendations. The main recommendation is to continue with the subsidies, but to increase the amount of payments for the salaries”, Zogaj said.

The next “recommandation is to continue with support for ensuring financial liquidity, because it's the main challenge, but at measure 10/A, the criteria are pretty severe in terms of Paco. For example, it gives priority to companies that have more than 10 employees and companies that have good credit stories, and this disparages other companies, which means that all companies have good credit history or that they have 10 workers. So these criteria should be softened”, she said

Otherwise, Kosovo's incumbent government through the Fiscal Emergency Pack, for the private sector has paid business workers who have not worked because of emergency measures but also 50 percent of the rent. But it has already begun preparing the Pack of economic recovery, under which businesses will be helped through loans, at a low interest rate.

In the gastronomy sector, according to Kosovo Statistics Agency data for 2018, it turns out that about 14,000 citizens work in 3,683 registered businesses.