The government's special operations team should prepare new measures to support the tourism industry, whose representatives told "Vijesti" that they are aware of the large losses they will suffer due to the coronavirus pandemic, which is why they are now preparing to compensate them, at least partially, when the health crisis passes. In this sense, in addition to expecting help from the state, some are planning a price correction, a greater turn towards the domestic and regional market, a more lenient reservation policy... and they are also announcing additional measures when it comes to sanitary safety and the safety of guests.
They indicate that it is important to save jobs because qualified labor in tourism is difficult to replace, and the problem in planning is also the closure of regional borders from whose countries they hired a large number of seasonal workers.
The Croatian government has announced that it will give its citizens a 50 percent discount on various tourist services as a measure to mitigate the consequences of the Covid-19 pandemic. More than 100 providers of accommodation, food, transportation, tours of national parks... participate in the discount campaign.
Tourism is one of the leading branches of the Montenegrin economy, which participates, according to the Ministry of Tourism and Sustainable Development (MORT), with 24 percent of the gross domestic product (GDP), and numerous other activities depend on it, especially domestic agricultural production. President of the country Milo Djukanovic said last week that this global crisis has shown that it is necessary for Montenegro to free itself from dependence on tourism and services.
This week, the government should adopt a second package of measures to help citizens and the economy overcome the economic consequences of the crisis caused by the coronavirus epidemic. According to "Vijesti" information from the executive branch, it is being considered that for tourism, which is now within the scope of endangered activities with planned assistance of 50 percent of the gross minimum wage for each registered worker, the support will be 70 percent, that is, it will amount to 155,5 euros instead of the planned 111 per employee. The first package enables postponement of obligations, loans...
President of the Employers' Union Predrag Mitrovic announced that he will soon submit his proposed measures for the tourism sector to the Government, estimating that the damage is already enormous and "followed up on the negative balance of the unsuccessful winter season".
Wise price lists, more advertising for nature
State Secretary of MORT Damir Davidovic said that from a global point of view, the tourism economy is under significant pressure, and that quality should be preserved and a wise price policy connected with the right marketing messages should be maintained, because "an irrational policy of falling prices by itself cannot provide a long-term quality response".
"In addition, I believe it would bring long-term challenges for the destination. When the health situation allows, all countries will turn to domestic tourism. That's where we should look for a chance. It is clear that, relative to the size of our market, a significant number of people from the most important emission markets will travel. According to the first indicators, this is the case in China where resorts are recovering faster than business destinations, and we have to approach them in the right way by representing the quality and safety of our destination. Montenegro is the last country in Europe where the first case of Covid-19 was recorded. The economy is expected to pay special attention when it comes to hygiene measures, and this will be an obligation and a newly prescribed standard. Nature, to which tourists are expected to return in the first period, is something we have in abundance, we just need to present it in the right way. I am sure that we have the quality, knowledge, partners and awareness to overcome this faster by using the comparative advantages in the right way in an even more developed cooperation between the economy and state authorities dealing with tourism", said Davidović to "Vijesta". MORT is coordinated by the Prime Minister Dusko Markovic.
Davidović said that the government has already adopted a set of measures that support the liquidity of the economy, and thus the tourism economy.
"The tourism sector is given special attention, although it does not belong to the formally closed sectors and in the second set of measures that are currently being considered. This, bearing in mind the importance of that sector for the Montenegrin economy, whose participation in GDP is about 24 percent. A special operational team has been formed which will propose additional measures to support tourism and the tourist economy in the coming period. This shows the Government's commitment to this economic branch from the aspect of liquidity, preserving jobs and its future", Davidović believes.
The season of no return, save what you can
The calculation of the tenants of the Ulcinj bathing areas is that, if they do not open the beaches in full capacity by May 1, 70 percent of the season will be wasted.
"Taking into account the measures that are in force, none of us has the illusion that we can have guests at the swimming pools on May 1st. We are aware that we are entering into a loss and so we try to prepare for what will come later. In this direction, we are thinking about reducing the prices of services at swimming pools", says the president of the Association of Tenants Prelja Škrelja for "Vijesti".
The owner of "Veneciija Palace" in the Old Town is also thinking about a reduced price Gano Resulbegović who is slightly optimistic about the season. He points out that it is ungrateful to predict when his hotel might open its doors to guests.
"We will see how the situation develops, but maybe the end of June is the time to start something." Therefore, it is advisable to prepare for slightly lower prices in part of the season. We have guests who have not canceled June and July. They haven't even asked for a refund yet, so now the only thing that matters is that this stops. We are fully ready to welcome the first guests already tomorrow," emphasizes Resulbegović, adding that the workers are paid the same wages.
Škrelja reminds that the labor force at almost all swimming pools is from the countries of the region - "from manual workers to waiters and cooks".
"And those people are now blocked in their countries, the borders are closed. Without a lifeguard, we cannot open the beaches, and they cannot confirm or renew licenses under these conditions. A lot of things are connected in the circuit, and our hands are tied", points out Škrelja.
The fact that JP Morsko delayed the payment of rent to tenants for 90 days, Škrelja points out, means nothing. They asked that company, the Government and the Municipality of Ulcinj to exempt them from paying the fee for the use of marine property (rent) for this year.
"The negative effects that the corona virus pandemic will have on the entire economy of Montenegro will be most reflected in tourism, where all planned arrivals and reservations for the period ending in June 2020 have already been canceled, and there is a real danger that this will happen in July as well and in August. It is clear that there will be no tourist season at all, or that it will be a season of very low intensity and duration, which in no way will be sufficient to provide a financial income that would be sufficient to meet all the obligations necessary to maintain a well-maintained swimming pool", stated the tenants in to the request.
Vouchers, promotional actions
Director of the Tivat Tourism Organization Danica Bojanic points out that they regularly follow the predictions of international experts and renowned institutions such as the World Tourism Organization (UNWTO) and the European Commission for Tourism and Travel (ETC), in order to adequately prepare for the period after the coronavirus crisis. He explains that it is important that after the opening of the borders and the normalization of the situation, promotional activities should be intensified and that the promotion of the offer should be aimed at locals and guests of the region. Bojanić said that vacations as a segment of tourism will be the first to recover, and business tourism will need more time to return to normal.
TO Tivat has prepared a set of recommendations for representatives of the local tourism industry. "Recommendations are a more flexible cancellation policy. It is understandable that tourists are uncertain about their reservations at this time. Consider the possibility of offering vouchers for canceled bookings that will be valid until the end of 2020 to increase demand and support guests, to be flexible with those who want to cancel already booked arrangements, to be in contact with business partners and guests.. .”, stated Bojanic.
In Croatia, changes to the Law on the provision of services in tourism were adopted as a matter of urgency, which enabled travel agencies to issue value vouchers, instead of refunding money to travelers for already paid package arrangements.
Hope for the second part of 2020.
In TO Ulcinj they say that the main goal is to keep the tourism industry stable until the preconditions are created for the continuation of normal business.
"Comparative data show that one fifth of arrivals on the Ulcinj Riviera take place in the first half of the year. This means that we are already in the red. But we must not be pessimistic", said the Ulcinj TO. They point out that it is necessary to preserve jobs because nothing can replace qualified labor in tourism and catering.
In MORT, they indicate that the second quarter of this year (April, May, June) is under unprecedented pressure on all markets, especially tourism or related sports.
"The drop in the number of passengers by the end of the year is expected to be over 800 million at European airports. We hope that the situation will be brought to an operational level, from the health aspect, by the beginning of June, because the opening of certain segments of the economy in major European countries has already been announced during the second half of April and in May. In that case, the second half of the year remains to invest efforts in achieving the highest quality results that will not be in line with what we achieved in previous record years.
The second half of the year awaits us, which will be significantly different compared to previous seasons. In all countries, great emphasis will be placed on domestic destinations and markets, and a significant advantage will be given to markets that have demonstrated their quality in dealing with the health crisis in this crisis.
I believe that we are all witnesses that Montenegro has demonstrated this," said Davidović, reminding that the pandemic will have significant economic consequences, and that tourism is a global service sector, and that they will be difficult in all developed markets that have been a significant emitter for Montenegro. markets.
Nothing from the guests in the pre-season, an important opening of air traffic
The company Karizma, which is the lessee of part of the "Ulcinja Riviera" and has ceded part of the accommodation facilities on Velika Beach to the state for quarantine, says that it is unlikely that there will be any tourists in Ulcinj during the pre-season. The company's director for Eastern Europe, Nemanja Kostić, points out that all airlines have grounded their planes and canceled all flights due to the coronavirus pandemic.
"Taking into account the negative effects caused by the virus, the chances that we will have the opportunity to host guests in the pre-season are minimal," said Kostić.
He added that they are in constant communication with airlines and tourist operators and that now he cannot say when the hotels on Velika Plaža could receive the first guests, and that at this moment it is ungrateful to bid when this could happen.
Hotel Regent Porto Montenegro is working on the preparation of activities for the post-Covid-19 period. Senior PR and marketing manager Elena Ljiljanić says that the health of employees and tourists is their first priority, so they are using the break to devise an even more complex procedure. He explains that the actions of competitors and airline announcements are important factors for guiding their strategies.
According to her, the expectation is that the hotel will open in May, and the exact date will be coordinated with the Government measures and procedures of Porto Montenegro as the parent company. The focus, when it comes to the first guests after corona, is on regional markets.
"Motivating the market of Montenegro and the region, corporate trips and organization of events by corporate partners are three clear goals that we plan to direct our activities to," Ljiljanić pointed out.
She says that the assessments of their foreign partners from markets that do not belong to the region of the former Yugoslavia say that after the re-establishment of regular airlines, "Montenegro will be extremely interesting to the markets of Europe, Great Britain and Russia as a country that can be reached quickly". He announces that the Regent has prepared benefits for guests who decide for longer vacations or for residential units.
Agencies are announcing flights from the end of June, they are counting on the post-season as well
President of the Montenegrin Tourist Association and co-owner of the hotel chain "Montenegro stars hotels group", Žarko Radulović said that the prices will be determined by the market, and "one should certainly be wise to bring them to a realistic level".
In order to attract guests, they introduced complete liberalization of reservations, and in the hotels "Splendid", "Montenegro" and "Blue Star", which they manage, they will introduce special sanitary regulations.
"We have made the reservation policy flexible, there are no more deadlines. We have liberalized when it comes to booking and staying in a hotel. We transferred the reservations that were for May to October, and those from June to September. We did not cancel whoever made the booking, but we accepted that reservation for the post-period", explained Radulović to "Vijesta".
He indicated that they sent some suggestions to the Government regarding the proposed measures.
"I saw an illogicality - it is said that those who have been banned from working by the government will receive a 70 percent subsidy, and the others 50 percent. Hotels should not have been closed, because there are no guests, and in the same situation it is like a restaurant that is closed. That is one measure that is already unfair in my opinion. A guest, even if he wants to, cannot come to the hotel, because he cannot cross the border," added Radulović.
He points out that the agencies have announced flights for them since the end of June, so they expect the season to start in July and August to be well booked. He also expects a good postseason.
The president of the Tourist Association of Žabljak, Živko Taušanović, recently stated that, after an unsuccessful winter season, the summer will be extremely bad in that city, because all reservations until July 1 have been canceled, and there are no new ones for the other months.
"It is too early to talk about losses, because we always compensated the losses of the winter season with income from the summer. The state must create a quality package of assistance to the tourism industry in Žabljak," he said.
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