The Covid-19 pandemic has caused an unprecedented crisis for the tourism industry in particular and the economies of countries around the world in general. Based on the actual situation, after a period of discussion with the World Travel and Tourism Council WTTC, countries and territories have put forward practical policies to support the tourism industry.
Italy
Italy has activated its Contingency Fund to support all sectors. The government has pledged to pay around 80% of the salaries of workers affected by Covid-19. Freelancers can apply for a special payment of 600 euros in March 2020. Families can defer mortgage payments if they are not earning due to the pandemic. Italy has also set up a 500 million euro fund to address losses in the aviation industry.
Hong Kong
Hong Kong has announced a subsidy program for travel agents in the territory affected by the Covid-19 epidemic. Currently, about 1,350 agents are eligible for the subsidy of 80,000 HKD. This is enough to help agents overcome financial difficulties as the epidemic lasts. Since the announcement, 98% of licensed travel agents have registered for the program to receive the subsidy. Hong Kong currently has 980 positive cases of the virus and 4 deaths.
Singapore
The Singapore government has waived licensing fees for hotels, travel agencies and tour guides, increased subsidy programs, and supported up to 70% of fixed monthly salaries for workers earning less than $2,000 a month. The government has also reduced landing and parking fees and reduced rental rates for agents and shops at Changi Airport. Singapore has also increased working capital loans and reduced corporate income tax by 25%.
Vietnam
To help the tourism industry recover, the Ministry of Culture, Sports and Tourism of Vietnam has also had many support policies such as: exempting value added tax for the tourism consumption sector and tourism businesses in the first, second and third quarters of 2020, reducing 50% of tax in the fourth quarter of 2020 and the first quarter of 2021; reducing environmental costs, reducing lump-sum taxes for individual business households in 2020. The Ministry also proposed implementing many credit support packages, reducing loan interest rates, extending grace periods, and delaying payments so that businesses have a basis to recover after difficulties. In addition, the Ministry is also making efforts to develop promotional plans and attractive policies to attract tourist markets in Europe - America, Russia, New Zealand, India, the Middle East, etc. to be ready to implement as soon as the pandemic ends.
Philippines
The Philippines has officially launched a $523 million aid package for the tourism industry. Of this, $271 million will be provided by the Tourism Infrastructure and Enterprises Authority, $23 million will be used for unemployment benefits from the private sector, $58 million will be used for labor retraining, and $40 million will be allocated to social protection programs for workers affected by the pandemic. The country's Ministry of Tourism is also planning to use $118 million for advertising during the recovery period.
Virtue
The German government has pledged to provide unlimited cash loans to businesses and to suspend mandatory financial obligations for companies until September 2020. This is a measure to prevent companies from going bankrupt during this crisis. Germany will also expand loans to businesses from 460 billion USD to 550 billion USD.
France
France has set up a 2 billion EUR Solidarity Fund to support businesses that have had to stop operating due to the pandemic, including 160,000 food suppliers, 140,000 trade businesses and 100,000 tourism businesses across the country.
Spain
Spain has announced a 400 million EUR grant for tourism companies, transport units, hotels, restaurants, museums, etc. based in the country with a limit of less than 500,000 EUR. In addition, the government has also issued a 200 billion EUR package to support businesses, workers and groups severely affected by the Covid-19 epidemic. Companies and businesses must commit to not mass layoffs to be eligible to receive this support.
United Kingdom
The British Prime Minister has proposed temporary measures to support public services, people and businesses with a total budget of up to 330 billion pounds. These measures include: 12 months of interest-free loans for retail, hospitality and leisure businesses; grants of 15,000 - 51,000 pounds for large businesses, 10,000 pounds for small businesses. Small businesses can borrow up to 5 million pounds through UK banks.
Portugal
Portugal has introduced more than 30 measures to protect domestic workers from the Covid-19 pandemic. The government has also focused on the tourism industry by setting up a credit line of 60 million EUR for small businesses, increasing the credit line to 200 million EUR for medium and large businesses, supporting 70% of social security costs, providing training scholarships, and extending the deadline for paying taxes and other financial obligations.
