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Published Thursday, April 23, 2020
Business Chamber urges
for economic recovery
By the A.M. Costa Rica staff
The Chamber of Commerce along with other representatives of the business sector urged President Carlos Alvarado to open up economic activity.
Since March the government has issued several presidential guidelines aimed at minimizing person-to-person activities such as closing businesses, banning all types of get togethers, closing schools, border closures, halting tourism, imposing driving restrictions, among many other precautionary measures. All efforts serve as emergency measures to contain the spread of the covid-19 in the country.
"We made an urgent call to the government to gradually return to the opening of formal economic activity, since the crisis generated by the covid-19, has caused serious consequences for the trade sector such as loss of employment, decrease up to 80% of sales, business closure, " said Julio Castilla-Peláez, president of the Chamber.
The reopening of economic activity in Costa Rica, according to President Alvarado, will have to be managed in a gradual manner.
"We must all walk together towards this new lifestyle, this new normality, on a gradual, progressive and inclusive route, where many sanitary measures will be maintained permanently and others will be gradually lifted," President Alvarado said.
During the meeting, representatives of the Chamber proposed the government begin to reopen businesses in partnership with the authorities, so that companies can gradually normalize their operations, following the precautionary guidelines issued by the government.
"From the business sector, we asked the president about the immediate actions in terms of employment and public spending, since we consider that more taxes are not the solution to boost the economy at this time," said the Chamber in its statement.
“The government reported that it is working with the Inter-American Development Bank on a plan of good health practices in the workplace, which could turn Costa Rica into a great pilot project for Latin America as a successful example of a safe and progressive opening of business."
According to the government, the recovery of commercial activity will depend on the evolution of the covid-19.
Last week the government announced the beginning of an action plan to help tour operators.
In order to find out the needs, concerns and suggestions of businessmen in the tourism sector, the government through the Ministry of Tourism is holding virtual meetings with associations and chambers related to the tourism sector.
According to María Amalia Revelo, minister of Tourism, the private tourism sector is deeply injured by the economic crisis due to covid-19.
"Our technical teams have been working on the Action Plan for the Reactivation of the National Tourism Sector and the ideas that arise from these meetings are being valued to design the plan," Revelo said.
Unemployment, lack of cash flow and poor financial capacity due to the crisis during the tourism season have been the main concerns that representatives of the chambers have reported to government authorities.
The Tourism Institute reports that, like its affiliated private companies, it has stopped receiving new resources due to the crisis unleashed by covid-19. "The reactivation will be gradual and slow, there are no magic solutions, the priority market for the tourist reactivation will be the national market as it will happen in other countries of the world," Revelo said.
According to the ministry, it is in the process of setting up containment, financial aid and recovery plans for the tourism sector.
For this plan, the authorities are consulting with other areas of the Government such as the Directorate of Civil Aviation, the ministries of Planning, Security, Economy, Health among others. Authorities are also taking advice from international organizations such as the World Tourism Organization and the Inter-American Development Bank.
Also, the government authorities call on the owners of tourism companies to explain to their employees the process that must be done to request the Proteger aid. This help applies to fired employees or those who had to reduce their salary.
According to the government, several presidents or leaders of various tourist organizations had already expressed their concerns over the effects of the pandemic on tourism. The National Chamber of Tourism, Costa Rican Chamber of Hotels, Costa Rican Association of Tour Operators, Costa Rican Association of Travel Agencies, Costa Rican Chamber of Restaurants, Costa Rican Association of Car Rentals and Association of Tourism Carriers, among many others were the first to communicate with the government.
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