TOURISM IN TIMES OF PANDEMIC COMPENDIUM OF KNOWLEDGE ON. CURRENT REGULATIONS, RECOMMENDATIONS FOR THE FUNCTIONS AND PROPOSALS TO SUPPORT THE TOURISM AND TOURISM INDUSTRY (INCLUDING HOTELS, GASTRONOMICS, ENTERTAINMENT, FREEDOM INDUSTRY, TOURISM ATTRACTIONS, TOURISM INFORMATION BROKERS) IN CONNECTION WITH THE DEVELOPMENT OF THE SARS-COV-2 CORONavirus Ladies and Gentlemen, For several weeks now, the Forum of Regional Tourism Organizations (FROT) has been following the situation at home and abroad with concern for the functioning of the tourism industry in Poland. The epidemic emergency introduced by the Ministry of Health on March 12, 2020 raises our concern for the functioning of the members of ROTs, especially entrepreneurs. In view of the seriousness of the situation, we present information on the tourism industry: preventive measures and treatments to minimize the crisis in the tourism industry caused by the sudden decrease in tourism. The basis for carrying out activities is the Specustaw on special solutions related to the prevention, prevention and combating of COVID-19, other infectious diseases and crisis situations caused by them, passed by the Parliament on March 2, 2020.
General recommendations
Pursuant to Article 3 of the Law of March 2, 2020 on Special Arrangements for Preventing, Counteracting and Combating COVID-19, Other Communicable Diseases and Emergencies Caused by Them, in order to counter COVID 19, an employer may instruct an employee to perform, for a specified period of time, the work specified in the employment contract, outside the place of its regular performance (remote work). If the work requires direct contact with the customer, it is recommended:
• maintain a safe distance from the caller (1-1.5 meters).
• promote, as far as possible, contact with customers via ICT devices.
• promote making cashless payments.
• promote regular and thorough washing of hands with soap and water or their disinfection with an alcohol-based disinfectant (min. 60%).
• make sure employees and customers have access to areas where they can wash their hands with soap and water.
• place dispensers with soap or other disinfectant liquid in conspicuous places and make sure that these dispensers are filled regularly.
• post information on how to wash hands effectively in a visible place.
• disseminate health and safety knowledge among employees.
• pay special attention to the recommendation NOT to touch the facial area with hands especially the mouth, nose and eyes.
• observe coughing and breathing hygiene. When coughing and sneezing, cover your mouth and nose with a bent elbow or handkerchief – dispose of the handkerchief in a closed garbage can as soon as possible, and wash your hands using soap and water or disinfect with alcohol-based products (minimum 60%).
• do not be afraid to point out to co-workers and customers that they should not cough or sneeze in our direction.
• ensure that the premises are clean and hygienic: touch surfaces such as desks, tables, doorknobs, light switches, handrails and other objects (e.g., telephones, keyboards, payment terminals), as well as storage equipment and internal goods handling equipment must be wiped down regularly with disinfectant or wiped down with water and detergent;
• all areas frequently used, such as toilets, common areas, should be cleaned regularly and thoroughly with water and detergent.
Hospitality industry
Among the most vulnerable to the crisis, but at the same time the most actively making demands of entrepreneurs, is the hotel industry, subject to particularly strict rigor due to its contact with tourists. Under the new regulations, a temporary restriction has been established on activities related to the operation of tourist accommodation facilities and places of short-term accommodation (included in the Polish Classification of Activities in subclass 55.20). These include short-term rental apartments, agritourism and colony centers. The regulations take effect from March 14, 2020 until further notice in the territory of the Republic of Poland.
Effective:
• A total ban on the business of preparing and serving food and beverages to guests seated at tables or guests making their own choice of food from a displayed menu, eaten on the premises, included in PAC 56.10.A, excluding serving food to take-away and in means of transportation. The ban applies to restaurants and other fixed catering establishments as defined in the PAC.
• Activities related to consumption and serving of beverages, included in PAC 56.30 (bars, pubs, etc.), are prohibited. The services of serving meals and beverages as part of additional services provided in hotels and similar accommodation facilities classified in PKD 55.10.Z are not prohibited .
• In addition, prohibited are activities related to the operation of tourist accommodation facilities and places of short-term accommodation, classified in PKD 55.20 (holiday resorts, training and recreation centers, hostels, etc.), colony centers and other holiday recreation facilities (e.g. in holiday resorts, cruise houses, training and recreation centers), guest quarters and bungalows, cottages or chalets, without service, rural farms (agritourism), youth hostels and mountain hostels.
Entertainment industry
As of March 13, 2020, the Government has introduced restrictions on food and beverage, entertainment activities, the operation of shopping malls, and banned gatherings of more than 50 people of a public, state and religious nature. This applies to both indoor and outdoor gatherings.
As part of the activities, cultural institutions and local governments will be able to prepare proposals for alternative entertainment. An example is the “Ant” system, which consists of providing individual museum, tourist and entertainment and educational trails that do not generate large gatherings, are organized in the open air, and can be attended both alone and in a small group. The system works on the basis of the so-called beacon, which is a tool that spreads around a signal received by mobile devices. Thanks to it, a smartphone will display information about a particular place, a clue in an outdoor game, an interesting fact about the current stage of a tourist route, help the blind to better understand things or their surroundings (audiodescription) and much, much more…. Beacons (the size of a large matchbox, battery-powered or mains-powered, operating 24 hours a day regardless of weather conditions) are placed in places where interaction with the project participant is planned (tourist, player, resident of the region – any person who installs the “Ant” application). The participant’s device will perform a programmed action after approaching the beacon at a distance of 5 to 30 meters. Recruitment for this form of activity is already underway and will extend into 2021 – more details: www.kso.com.pl/mrowka
Tourist Information Offices
Tourist Information Offices are an important link of the Polish Tourist Information System operating with the support of the Polish Tourist Organization (PTO). The representative of the Polish System of Tourist Information (PSIT) is the Forum for Tourist Information (FIT), which sent a letter to the PTO on March 11, 2020, asking it to issue guidelines for the operation of tourist information offices during an emergency. In response to the letter, the PTO says that there are no regulations indicating what precautions in tourist information centers and points should be recommended in this regard, but recommends following the recommendations of the Chief Sanitary Inspector in this regard and general rules.
At the same time, the PTO stresses that it is worth taking into account the information coming from the Government encouraging remote work, which in this particular case could mean increasing the provision of tourist information via the Internet. It should be stressed, however, that decisions in the aforementioned regard can only be made by entities that run or supervise tourist information centers and points. Currently, the situation is dynamic in connection with which it is necessary to adapt to the current recommendations of the services, treating the health of employees and tourists as a priority.
As FROT, we recommend that preventive measures be introduced in accordance with the Ministry of Health’s guidelines for individual units, bearing in mind the health of employees. At the same time, we note that most CITs and PITs have made changes in providing information: offices are closed to visitors, and tourist information is provided by phone and e-mail address.
Travel agencies
Cancellation of tourists from tourist events is associated with the possibility of recovering part of the costs of organizing stays by tour operators. On the basis of Article 13 of the Law on Special Solutions for Preventing, Counteracting and Combating COVID-19, Other Infectious Diseases and Crisis Situations Caused by Them, tour operators will be able to obtain a refund of contributions paid to the Tourist Guarantee Fund for tourist events that were cancelled or terminated for reasons directly related to the outbreak. The introduction of a mechanism to improve the liquidity of entrepreneurs is aimed at ensuring the smooth operation of operators in the market for tourist services, in conditions of the worldwide spread of the SARS-CoV-2 virus. Under the new regulations, the TFG contribution will not be credited to future tourist events, but will return directly to the tour operator in the case of events canceled due to the outbreak. The rules for recovering contributions can be found on the website of the Ministry of Development. Below are the most important procedures.
How to get a refund of contributions paid to the Tourist Guarantee Fund?
When submitting an application to the Insurance Guarantee Fund for a refund of contributions, it is necessary to show the amount to be refunded and to attach documents confirming withdrawal from or termination of the contract, a statement by the tour operator regarding the date on which the statement or termination became effective, a correction of the submitted declaration, as well as a list of contracts from which the refundable contributions arise. Requests for reimbursement of payments to the Tourist Guarantee Fund should be submitted by correspondence to the address of the Insurance Guarantee Fund: 9/11 Plocka St., 01-231 Warsaw, marked “TFG”. At the same time, we recommend that you actively follow the website of the Insurance Guarantee Fund and the information appearing there regarding the current procedure for refunding contributions. Failure to submit an application under the special procedure for return of contributions means that the ordinary procedure of setting off contributions against the next due payments to TFG remains in force for tour operators. Listing the terminated or amended agreements in the submitted declaration entitles the tour operator to accrue the contributions arising from these agreements under the existing rules.
Can all premiums paid to the Tourist Guarantee Fund be recovered?
The refund of premiums under the Act applies only to premiums paid for tourist events that were withdrawn from or terminated for reasons directly related to the outbreak. This applies to contracts that were withdrawn from or terminated under Article 47(4) and Article 47(5)(2), respectively.
Is it possible to mobilize funds accumulated in the Tourist Guarantee Fund for purposes other than protecting travelers from the consequences of the insolvency of the tour operator?
The Law on Tourist Events and Related Tourist Services precisely defines the purpose and rules for mobilizing funds accumulated in the TFG account. In accordance with Article 35(1) of the Act, these funds are intended to cover the costs and reimbursement of payments referred to in Article 7(1)(1), and are released only when funds from the tour operator’s financial security prove insufficient to cover them. The procedure for releasing the funds, in turn, is provided for in Article 21 of the Law. The funds collected in the TFG serve to protect the property of the traveler, but only at the time of the entrepreneur’s insolvency and only when the funds from other financial security of the tourist entrepreneur referred to in the Act (insurance guarantee or bank guarantee, insurance contract for the benefit of travelers) are insufficient to cover the obligations of the entrepreneur related to the concluded contracts for participation in tourist events or the establishment of related tourist services. The law does not provide for the refund of payments made by travelers, payment of compensation, indemnity or any other payments from TFG funds than those described above.
The crisis staff at the Ministry of Development and its demands
The dynamic situation related to the epidemic threat and the losses of the Polish tourism industry have led to the joining of forces of tour operators, the hotel industry, school tour operators, travel agents, organizers of fairs, MICE, Incentive Travel, the entertainment industry and coach and air carriers. A crisis staff established under the Ministry of Development has been in place since March 9, 2020, consisting of the following institutions:
o Polish Chamber of Tourism
o Polish Association of Tourist Organizers
o All-Poland Association of Travel Agents
o Cracow Chamber of Tourism
o Polish Association of Coach Carriers
o Polish Chamber of Exhibition Industry
o Harmony Polish Hotels
o Association of Conferences and Congresses in Poland
o Association of Marketing Communications
o Event Agencies Club
o Event Industry Association
o Association of Incentive Travel Organizers
o Meeting Professional International Poland Chapter
o Polish Chamber of Stage Techniques
o Polish Hotel Industry Chamber of Commerce
o Association of Representatives of Business Tourism Organizers
o Association of Organizers of Artistic and Entertainment Events
o Polish Chamber of Training Companies
The institutions affiliated with the crisis staff have sent Postulates to the Ministry of Development, which were accepted and generally presented by Minister Jadwiga Emilewicz at a press conference on March 10, 2020 in Warsaw.
Detailed postulates of entrepreneurs affiliated with the crisis staff
DIRECT FINANCIAL SUPPORT (low-cost credit lines, subsidies, etc.):
● immediate launch of new lines of credit and preferably non-refundable direct financial assistance to avoid new liabilities and entering an endless credit loop through no fault of the entrepreneur;
● the launch of BGK loans with a repayment grace period of 12 months, no commission, no additional fees, the initial proposed amount of up to EUR 500 thousand may be insufficient vs. the needs of the market -mortgaged at 50%, loan term of up to 5 years, de minimis share of BGK up to 80%.
THE ISSUE OF LIABILITY OF COMPANY/COMPANY BOARDS
● immunity in the Companies Act for the boards of directors of companies in our industry (that have suffered disruptions in their operations) so that in the event of delays in filing for bankruptcy, they will not be held personally liable (they are not personally responsible for this situation) for the operation of the company as of 01/02/2020 – this will avoid the situation of “filing for bankruptcy just in case”.
ISSUES OF REFUNDS FOR TRAVEL PRODUCTS AND THE AMOUNT OF THE INSURANCE GUARANTEE
● extending in the law the deadline for refunds for foreign and domestic tours so that organizers have, for example, 6 months for a refund or can make it into a voucher for use within 12 months. This would greatly improve the liquidity of tour operators;
● the possibility of reducing the declared turnover to the tourism guarantee below the amount of the previous fiscal year in case of unavoidable and unforeseen circumstances affecting the tourism market. We expect lower turnover and difficulties in securing guarantees at the level of the previous year. Possibly securing part of the guarantee, e.g. 30% with funds from the BGK;
● Possibility of shortening the insurer’s liability after the end of the guarantee to a period consistent with the tour operator’s declaration, e.g. 6 months.
SCHOOL TRIP ISSUES
● TRANSFER of school trips to autumn and not their cancellation by MEN, schools, etc. – decision of MEN without regulation etc. is sufficient.
LABOR ISSUES
● the possibility of sending an employee on vacation without his/her consent;
● the takeover by the Guaranteed Employee Benefits Fund of the minimum wage for a period of 6 months (from March 1) in the event of the introduction of the so-called “standstill” of companies affected by the crisis;
● temporary suspension of all additional wage costs with retroactive effect from March 1, 2020, for a period of 6 months;
● reduction of the wage wedge;
● a reduction in working hours with a proportional reduction in salary – without the need for a change notice: the reduction in working hours will not be allowed for more than 6 months, and the working hours will not be allowed to be less than ½ full time;
● using the downtime to enable free online training for industry employees (like training vouchers, but with the abolition of contribution).
VAT / CIT / ZUS / LOCAL TAXES / FEES ISSUES
● suspension/cancellation of Social Security, not deferral (again, a credit loop) especially for sole proprietors, and preferably a state takeover of Social Security / PIT payments – 4 from March 1 to the end of the year;
● property tax exemption on hotels in shutdown/ linking property tax to facility revenue/ not charging interest (hotels, fairs, facilities);
● exclusion of hotels from paying minimum tax, final clarification of earlier MF position (hotel);
● tax on means of transportation – no interest charged;
● garbage fees – facilities do not operate, empty garbage trucks drive, fees are charged – exemption from fees/no interest charged;
● acceleration of VAT refunds;
● not charging VAT on advance payments with VAT procedure – margin;
● reliefs/exemptions in CIT;
● split payment VAT – abolition in our industry (especially for MICE/Fairs/Entertainment);
● suspension/non-initiation of enforcement against entities that have lost the ability to pay taxes on time;
● exemption from liability for failure to pay taxes on time (currently, failure to pay on time = fine for persistent failure to pay);
● possibility of crediting contractual penalties (e.g., in contracts with service providers) as tax expenses;
● deferral of deadlines for submission of all tax returns and statements, reports to the National Bank of Poland, the Central Statistical Office, the State Fund for Rehabilitation of Persons with Disabilities, any grant-giving institutions, and the preparation, signing and approval of financial statements for 2019, as well as other reports and periodic statements for which strict deadlines arise from other regulations, including securities trading, banking law, for which the deadline for preparation and submission is after 12/03/2020.
● the possibility of settling the loss in 5 consecutive calendar years;
● the exclusion of the need to reimburse customers for ancillary services (such as transaction fees or delivery costs). This means that it will be possible to reimburse the price of a ticket for concerts or events alone, without reimbursing additional costs charged at the time of ticket purchase (e.g., transaction fees, or delivery costs these services have already been provided);
● the inclusion of expenses related to the cancellation of projects/products as tax expenses in relation to the affected industries;
● abolition of the rollover fee;
● the “retroactive” deduction of losses from income (i.e., losses from 2020 from 2019) – we can deduct losses incurred from business activities in a given year from income earned in the next five years;
● postponement from 01.04 to 01.07.2020 of the deadline for companies to register with the Central Register of Beneficial Owners (anti-money laundering law).
ISSUES OF COOPERATION WITH BANKS
● relaxation of the criteria for assessing the creditworthiness of companies in the tourism industry when extending, increasing lines of credit, as well as granting new loans secured by BGK guarantees (including the abolition of the requirement for a certificate of not being in arrears with Social Security and the US and relying on the financial result for 2019 and forecasts for Q3/4 2020);
● suspension of BIK listing until viable financial solutions are in place;
● deferment of lease and loan installments without interest and penalties from February 1, 2020;
● launch of new loan products from BGK on an immediate basis (regardless of a company’s current creditworthiness);
● freezing mortgages from individuals and legal entities from February 1, 2020 for 12 months.
OTHER SOLUTIONS
● reducing the amount of third-party liability and AC fees for coaches;
● the possibility of insuring vehicles only for the duration of their operation;
● postponement of any tourism /fair/MICE/training and development activities planned by the SSP, rather than their cancellation;
● launching an extensive image/marketing campaign Don’t cancel, reschedule targeted at rescheduling vacations, business events, concerts, training sessions, hotel stays, etc.;
● as soon as possible unfreezing the ban on travel and organization of training courses, conferences by the SSP, as well as state offices including urgent regulation of already implemented projects in 2019 and 2020;
● extension of the procedure and time for the return of purchased tickets to 6 months for concerts and events due to the scale and logistics of the process (an additional demand – following the example of Latvian solutions, in the case of postponement of an event within a month of its date for up to 12 months from the original date of the event, limited refund options);
● accelerated return of money from state cultural institutions paid as advances and deposits by the tourism industry;
● withholding of inspections by Tax Offices, Social Security, PIP, ITD, etc. for the next 6 months.
As FROT, we will keep our members and supporters informed – to the best of our ability – of the recommendations taken by the government, the exiting legislation and its interpretations
Source FROT
