Today’s report that the Committee for Financial Supervision CFT has urged phasing out coronavirus-related payroll support may be met with some concern. After all, according to the most recent figures (see related story) 1,249 companies have been processed by the programme.
That is a big chunk of the local private sector and its workforce. These businesses must prove a decline in turnover to qualify for the same percentage – up to 60 – in wage subsidy and obviously depend on such, while the personnel and employer each also contribute 20 per cent to cover the remaining salary cost.
The good news is that CFT’s recommendation regards the second half of 2021. This implies the payroll support would still be available for January through June and considering that December has only now been paid out it could mean another six months of crucial assistance to preserve employment, but also government income from taxes.
The idea to replace the wage subsidy with a job loss scheme was not explained in detail yet. One thing to keep in mind is whether this would not lead to more layoffs than already the case due to the socioeconomic crisis caused by COVID-19.
With widespread vaccination in the destination’s main market North America not expected to be completed before this summer, it probably will take a while longer to see any recovery of stayover tourism to pre-pandemic levels. There are growing indications as well that cruise calls to the region might not resume in earnest until at least June, so for now continued help is very much needed and therefore more than welcome.
