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Augsburg (April 24, 2020). In view of the current situation, many decision-makers are lacking words – but not everyone. Today Michael Struck, CEO of Ruby Hotels, gives us his view on the Corona, Accor CEO Sébastien Bazin appeals to employees and partners.
Dieter Müller, Founder & CEO Motel One
"In the economy, you cannot stop one wheel (turnover, income) and keep the other wheel turning (rents). For three months, no rents, leasing rates or interests have to be paid. This way, the lessee does not have to pay his rent, the lessor does not have to pay his bank interests and amortisation. The bank does not have to pay any interests to its re-financer, which means the German Central Bank or the ECB. The duration of the agreements could simply be prolonged for 3 months and nobody would suffer any significant damage. The moratorium would also reduce the social imbalance of this crisis significantly."
In Germany, 70,000 hotel and catering businesses are threatened by insolvency, almost a third of the catering businesses. However, the promised precise aid packages tailored to the sector are still not forthcoming. On Wednesday evening the government gave the industry the gift it was asking for – a reduced VAT from 19 to 7% for the catering industry, from July 1, 2020 and limited for one year. Dieter Müller:
"The temporary reduction of the value-added tax for one year sounds like a bad joke. In times where the industry can only expect low sales due to continuing restrictions, this will not help the businesses. Unfortunately, we have lost sight of the industry's current problems due to the discussion on this tax reduction. I would prefer a phased plan instead:
(1) moratorium for rents/interest/amortisations/energy for April to June;
(2) initial aid after the shutdown, as lost subsidies from July to December, based on the previous year; prolonged if necessary until a vaccine is available;
(3) permanent VAT rate reductions for gastronomy. Already today, businesses will emerge financially crippled after the shutdown and they no longer have the power to survive the difficult months after the re-start."
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