Coronavirus: Restaurants and bars won’t last more than three weeks with new measures

The Association for Catering Establishments (ACE) said that restaurants and bars all over Malta will have to close-up shop in three weeks’ time, with or without the economic measures announced by the government.

“The restaurants and bars won’t last for three weeks with these measures. We ask that better measures are implemented as soon as possible to address the problems of business rents and employees,” ACE said in a statement on Thursday.

ACE has joined a number of associations, including the Chamber of SMEs and the Hotels and Restaurants Association, in expressing its disappointment at the “shortsighted” mini-budget announced by the government on Thursday.

The government said that it would dedicate €1.81 billion to mitigate the impact of Covid-19, but less than €200 million of that package is direct monetary injection. €1.6 billion is being dedicated via €700 million tax deferrals and €900 million in loan guarantees.

“The government has the economic responsibility of the country and the association has expected better measures than those announced. Since we don’t know for how long this crisis will last, we need to keep our eye on any economic shifts and the financial situation of businesses, the self-employed and the employees,” ACE said.

Among other things, the association has asked for utility bills for restaurants and bars to be calculated at the domestic rate rather than the commercial one and that interests and penalties on late payments be wholly terminated for the time being.

“With the measures announced, restaurants and bars will likely only make it for three weeks more, but if the government doesn’t provide for three out of five days’ work, most establishments will have to close.

“While we don’t want to see any employee lose his or her work, the reality is that many employees have already become redundant and without substantial help from the government, this sector will have to face harsh consequences.”