The tourism crisis lowers revenues of HORECA product suppliers by one fifth

“Of the three categories of HORECA suppliers, the investment providers will be most affected, as many of the hotel projects have been suspended. But equipment and public food suppliers will also be affected, mainly due to the cut in budgets for new equipment and furniture, and to the 30-35 percent decline in occupancy rate, which automatically leads to a drop in consumption,” said Tinu Sebesanu, Chief Executive Officer of the Trend Hospitality company, which operates the Howard Johnson hotel in Bucharest.

The General Manager of Ambasador hotel, George Turna, said that own financing sources are currently dropping and nearing zero. “Lending is very difficult, so the HORECA supplier market is very likely to decline by more than 20 percent,” Turna added.

Mihai Acatrinei, General Manager of the Ramada Majestic in Bucharest, is optimistic and rejects estimates by competitors. “I think the drop will be of 10 percent at most, but this depends to a great extent on the effects at the level of the whole of society, not only this industry. I believe it is too soon for a forecast,” Acatrinei told Business Standard.