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Bars, restaurants, hairdressers and hotels fighting for survival

The fateful Phase 2 arrives but with several exceptions - Among the most penalized are public establishments and personal care services which - barring second thoughts - will have to wait until June - The risk of closing for these activities is becoming more and more real - Many shopkeepers protest from all over Italy yesterday handed over the keys to their premises to the mayors

Bars, restaurants, hairdressers and hotels fighting for survival

Phase 2 is approaching, but not for everyone. As stated by Premier Conte in the last DPCM, bars, restaurants, hairdressers, hotels and some shops will have to wait still to be able to resume their activities, unless there are improvements from a health point of view. A choice that has sparked several controversies in public opinion, especially on the part of entrepreneurs. It is no coincidence that the shopkeepers of many establishments protested yesterday by handing over the keys to their premises to the mayors.

Bars and restaurants, for example, will be able to reopen to the public for now but only with the takeaway service, while for consumption at the table they will have to wait until June 1st, unless they change their mind at the end of next week.

But even then, the necessary measures will in any case be stringent: seats halved, tables outside the structures, between sidewalks and parking lots, adaptation of sanitation standards, as well as daily sanitation works. With the consequence that 50 businesses risk bankruptcy, jeopardizing beyond 300 thousand jobs.

Among these, there are historic bars and restaurants in the capital, such as the Tre Scalini in Piazza Navona or Da Romolo at the Mole Adriana in vicolo del Campanile (open since 1932), where the fear of low revenues leaves no room for optimism.

Hotels, B&Bs, holiday homes have to face an even more dramatic situation. Heavily dependent on tourism, even if they were to reopen the market is still at a standstill. And while catering can count on take away or delivery, the absence of tourists, especially foreign ones, puts entrepreneurs on the verge of bankruptcy.

For hairdressers and beauty centres it's a whole other story. Because for the restart – again unless second thoughts at the end of next week – they will have to wait until June 1st, after 3 months of detention. Considering, however, that June 1st falls on a Monday (weekly closing day for these activities) and June 2nd is Republic Day, the reopening of these activities is postponed directly to 3 June.

In the meantime, there is no shortage of controversy from the manager of these businesses, according to which the blockade would only increase abusive work and services provided at home, without compliance with quarantine or anti-contagion rules.

On the national territory it is estimated that there are approx 130 craft businesses who carry out this kind of activity (barbers, hairdressers, beauticians, etc.), with a turnover of over 6 billion a year. The lockdown has already caused significant damage to these businesses, accounting for around 1,5 billion in losses.

Moreover, since most of these companies (about 90%) are very small, consisting of one owner and at most two employees, with low turnover, their survival hangs in the balance. It is estimated that 25% of these stores will not be able to overcome the health emergency and they will be forced to close their doors.

Not to mention those activities that also include the rent among their costs, and which will also have repercussions on the real estate market. Already many tenants have requested a reduction, if not a suspension of the rent. In any case, a cost without income is difficult to pay.

About this, the activities of the sector have risked the Government the possibility of being able to anticipate the reopening. But even if the provisions were respected (the ratio 1 to 1), sanitation and all the measures to be taken, would it still be sufficient for the survival of these activities? Would personnel, fixed costs, material, sanitary measures be covered by a halved clientele?

Let's take hotels for example. Room cleaning will take twice as long, not to mention the sanitization of the facilities, the absence of the buffet and the number of guests drastically reduced to allow for social distancing. Second Rocco Forte, historic name in the hotel industry, a hotel "is sustainable if occupied at 50%".

But for the entrepreneur there is no doubt "better to open sooner than later, every day more is a delay for the restart of the economy".

There is no certain answer, such as a right choice. Deciding between business failure or the risk of a second wave of infections is not easy. As in the case of Germany, which after the easing of the restrictive measures, the contagion curve has risen again, albeit with daily fluctuations.

But we entered one spiral health emergency-economic emergency which threatens to lead our country into a recession never seen before. Therefore it is not easy to move in such a situation, but concrete help is needed. Not to mention that many businesses are family-run and often the only entry into the house.

Between layoffs, which many are still waiting for, and conditional loans which, in this situation, are not sufficient, lead entrepreneurs to have to choose whether to abandon themselves to bankruptcy or try to convert their businesses.

There is a lot of anger and frustration among freelancers. However, to tip the balance, for a possible early reopening of these activities, it will only be the control of the health situation.

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