The Ministry of Labor has announced, for yet another year, two plans targeting the hospitality sector. These plans are designed to bolster employment in mountain hotels and the recreation centers of coastal areas in Famagusta and Paphos, with the aim of subsidizing employment rather than unemployment. This initiative is particularly crucial during the winter period when many workers in the hotel and catering industry find themselves unemployed until the start of the new tourist season.

Essentially, these two plans aim to reactivate those hotels and recreation centers that have suspended operations due to the winter season. This will be achieved by subsidizing the salaries of employees. In return, businesses will reimburse the amount equivalent to the unemployment benefits that these employees would have received if they were registered as unemployed.

More specifically, participating businesses in the Plan will pay a training allowance to the trainees equal to their regular salary. This allowance will include social security contributions collected by the Social Security Services. As the implementing authority of the training program, the Social Security Services will then reimburse the business with the unemployment benefit entitled to the trainees, effectively returning about 60% of the salary paid to the employees.

In an interview with Brief, Fanos Leventis, the General Secretary of the Pancyprian Association of Recreation Center Owners, emphasized that the plan alone is not enough to restart restaurants and cafés.

He explained that the expenses of these businesses cannot be covered merely by the unemployment benefit returned to the businesses. This is because the visitor traffic in these areas during this time of the year is not sufficient to justify their continuous operation.

Moreover, Mr. Leventis noted that this issue is reflected in the small number of applications submitted each year by businesses wishing to participate in the plan. When asked for further comments, Mr. Leventis did not dismiss the plan entirely. However, he noted that for it to work effectively, it must be combined with other actions.

As he elaborated, attracting tourism or customers is challenging when an entire area shows signs of desertion, and only one shop remains open. According to Mr. Leventis, the state could subsidize a specific area each year, keeping hotels, pubs, cafés, and restaurants open to attract people and tourists.