Veracruz lost thousands of jobs and businesses to pandemic

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After the reactivation of the sector, there has been a monthly increase in hotel occupancy

Veracruz, Veracruz- Hoteliers of the Veracruz conurbation estimate to close 2020 with an average occupancy of 25 percent, calling it fatal, said the Vice President of the Tourism Commission of the Employers’ Confederation of the Mexican RepublicSergio Lois Heredia.

The businessman acknowledged that after the reactivation of the sector they have been having a monthly increase in hotel occupancy, however, even so, they do not foresee reaching the occupancy that is required to meet expenses.

“If we put together the percentages from January to December 2020, we will be getting an average 20 to 25 percent when in previous years we complained that we had 50 and that it is low compared to other tourist destinations, but now 25 percent without a doubt it does not even allow us to reach a point of equilibrium that we are talking about 40 percent, which we say is enough to take out the expenses, so it was a difficult closing, “the interviewee acknowledged.

As if that were not enough, this month is not being favorable either, since the first fortnight was weak and the reservations for this second are slow for Christmas and New Year’s celebrations.

The hope is that vacationers will let themselves in at the last minute and thereby achieve a 40-50 percent rebound in the conurbation.

“We believe that we can reach 50 percent which would be the best month within the pandemic months, but like December it would be the worst in history to close this year with a flourish .”

He stated that the expectation is that by 2021 there will be a recovery of what was lost, although he regretted that in the case of the jobs that were lost due to the crisis, it would not be until 2022 perhaps when they could be recovered.

Thousands, without work in the region

Around the territory of Veracruz, the crisis due to the pandemic hit the business and commercial sectors, leaving unemployment and businesses closed

ORIZABA,- Between 4 thousand and 4 thousand 500 direct jobs have been lost so far in the pandemic due to the definitive closure of at least 1,600 micro-businesses in 16 municipalities, said Francisco Jiménez Haces, president of the National Chamber of Commerce (Canaco ) in this city.

He said that the contingency has hit a lot to trade, because, although there has been a recovery, it has been very small.

Yes it has hit us and we have more or less a 30% of the fallen sales, which really is very devastating

In numbers, he pointed out that around 1,600 micro-businesses closed, some permanently and others, at times because they open from Monday to Thursday or Thursday to Sunday, so their income is not the same as before.

He exemplified that there are gyms that were waiting to open and when they did, people did not arrive, that is why they closed.

He indicated that the sectors most affected are food, restaurants, bonnet stores, and small shops. The number of jobs that the business closure has generated is close to 4,500 directly.

In Córdoba

Despite the epidemiological traffic light change regarding the coronavirus in the city of Córdoba, the economic damage and job losses have already been done, said José Francisco Castillo de los Santos, president of the National Chamber of the Transformation Industry (Canacintra) Córdoba, who also revealed that at least 80% of the industries adhered to the Chamber have had to cut staff. He said that the change of traffic light was hasty because to date the health or reactivation strategies for businesses are not known.

José Francisco Castillo de los Santos, president of the Canacintra Córdoba

Closing of the year will be with red numbers

Without fiscal support, extensions in the payment of services, and with sales on the ground, Xalapa entrepreneurs foresee a complicated end of the year. Less than 4 months before the end of 2020, the business sector is already beginning to think about the economic burden that comes with the payment of end-of-year benefits that they will have to face in “red numbers”.

According to presidents of chambers and business organizations, the “recount of the damages” that Covid-19 has left in the sector cannot yet be done since there are still thousands of businesses that remain closed since last March when the authority decreed the start of quarantine. However, they warn that many of the companies that closed their curtains five months ago following the recommendations of the health authorities will not be able to reopen them.

Octavio Jiménez Silva, president of the Xalapa Business Coordinating Council (CCEX) assured that 2020 has been an atypical, complicated, complex, and difficult year for the business sector. And it is that, the economic consequences that the Covid-19 pandemic is leaving added to the effects that the Xalapeño businessmen had been dragging for several years.

“We will ask governments to have more public investment and that the money that comes in be spent because people no longer have money to spend and by not spending the economy is not reactivated,” he said.

The Veracruz businessman also asked that in the midst of sanitary measures, more companies be allowed to open their doors so that these last four months of the year are not “lost” as they have been the first. ” We want this to begin to move because day by day it is seen more critical for the sector.”

THERE WILL BE MORE CLOSURES: CANACO

Although officially, the National Chamber of Commerce, Services and Tourism (Canaco Servytur) in Xalapa has recorded the official closure of 600 companies due to the economic crisis that Covid-19 is leaving, the number could be much higher.

Bernardo Martínez Ríos, president of the Xalapa delegation, specified that the business organization has so far registered 395 grocery and retail businesses, as well as 195 restaurants that have stopped operating permanently due to the pandemic. However, he acknowledged that it has not been possible to quantify a series of businesses that occupied premises that already have a “For Rent” sign“If there is significant damage (…) and that ultimately has consequences that we have to overcome,” he said.

In an interview, he announced that, in addition to the closings that have already been registered, there are many other businesses that were “very hurt” economically speaking, so the sales generated in the last quarter of 2020 could be for them the difference between “continue or close”. “The real estate sector, the tourism sector, the gastronomic sector among others are seriously affected, although we hope that the end of the year will help a little, however, it will not be like previous years, we must be very clear, ” he said.

REOPENING WOULD BE A RELIEF

Alejandro de la Madrid Trueba, president of the National Chamber of the Transformation Industry (Canacintra) in Xalapa assured that the businessmen of the branch he represents are experiencing a complex situation. He explained that the economic slowdown has been more than evident and that beyond the numbers, the crisis has been reflected in the loss of jobs throughout the region.

In an interview, he pointed out that despite this adverse situation, the Mexican state has not had the will to support employment, to provide tax incentives for entrepreneurs, reduce social security quotas or some taxes, or to grant extensions for those who most need it. need. ” This has brought as consequences that many companies have been closed and finally there is no other option than to let us work because the essential activities are all because people have to take food home,” he said.

However, he assured that the reopening of many businesses in Xalapa in the midst of the correct security measures represents a “window” that opens for Canacintra partners. ” The virus is something that is here to stay and it is necessary to adapt to this situation, shops cannot remain closed forever because it is an adverse economic situation that began in the country in February with the first contagion,” he recalled.

De la Madrid Trueba announced that so far, none of the Canacintra Xalapa partners has confirmed the definitive closure of their company, although he acknowledged that there are many businesses that have been dragging a major economic crisis and are in the red. Above all, he said, those that have to do with the hotel and restaurant industry as well as the branch of cafes and bars. ” They are the ones who have suffered the crisis most directly from the onslaught of the crisis.”

Against this background, the president of Canacintra Xalapa called on the municipal government headed by Hipólito Rodriguez Herrero to contemplate from now on some reductions in the property tax 2021 and to analyze reductions in drinking water rates for businessmen and to invest in the purchase of tests to apply them free of charge to citizens, the latter in order to obtain a real panorama of the disease in the capital.

60 thousand jobs were lost: Coparmex

Veracruz has placed in first place with the loss of 60 thousand jobs during this Covid-19 pandemic, based on the figures from INEGI and Banco de México, a figure that will hardly be able to recover in the coming months, reported the local president of the Employers’ Confederation of the Mexican Republic (Coparmex), Alberto Aja Cantero.

The most affected sectors are those of construction, tourism, logistics, transport, and established commerce and the entity has been classified as the most affected because in recent years, it has not registered an increase in the generation of jobs, it is In other words, it has remained stagnant in that area.

“These are official data from the source of INEGI and Banco de México, where Veracruz is the state that has most impacted the loss of jobs because it is the one that had generated the fewest jobs at the time of the pandemic, so we have lost the jobs that it took 10 years to build ” , he commented.

At the same time, he accused that, as if that were not enough, the Veracruz entity has regressed on the issue of competitiveness and said that these situations are due to the inability of the state government to provide answers. ” The responsibility lies with who should give answers and in this case, it is the state government, which, unlike other states in the country, have not taken the appropriate, pertinent, and reasonable measures to stop the decline in jobs,” he said.

In this sense, the representative of the employers’ confederation reiterated the call to the federal and state governments to take on solidarity remedies that have to do with insurance and solidarity wages and an unemployment bonus, to help cushion the unemployment crisis.

4,500 businesses have closed in the port

During the five months of the health emergency due to Covid-19 before the yellow traffic light, the state of Veracruz recorded the closure of more than 4,500 businesses and the loss of 55,000 jobs, reported the president of the Chamber National of Commerce (Canaco) Veracruz delegation José Antonio Mendoza García.

In an interview, he clarified that the pandemic has not been eradicated and cases of Coronavirus continue to appear, however, due to the economic crisis, it is necessary for businesses to reopen under the established sanitary measures. Recently, 140 closed permanently and 10,000 businessmen pass it in severely critical conditions, he added.

He indicated that according to reports from the unionized businesses such as the sale of furniture, tailor shops, the sale of paintings, toy stores, shoe businesses and especially those in the tourism sector such as hotels and restaurants, are among the most affected by the pandemic. “ We spoke with businessmen in the furniture industry and they tell us that it will be very difficult for them to get ahead, they are in the red and want to reopen by giving offers and lower prices to what they can to make the same profit for the painting business, tailor shops because they are items that were not necessary during the pandemic and which had many losses, “he said.

In the specific case of the Veracruz-Boca del Río metropolitan area, he pointed out that the most affected area was the Historic Center, where it is estimated that 30% of the businesses closed permanently due to the crisis and, the other 70% are dealing with to overcome through credits and loans, but with the fear that the traffic light may change again and they ask to close the account again.

The businessman said that all the businesses that are reopening their doors are taking into account all health protocols to avoid risks of contagion between staff and customers.

Source: elsoldecordoba.com.mx

Veracruz Daily Post

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