APECATE study: business breakdown, redundancies and insufficient support

Here are some of the results of a study carried out by APECATE in August, with its members.

A study by APECATE - Portuguese Association of Congresses, Tourism Animation and Events Companies, carried out in August with its members, reveals a piercing break in businesses, which faced with the need to dismiss their workers. Respondents also consider that support is insufficient to maintain their activity.

According to APECATE, 29% of its members had zero income between March and July 2020, compared to 2019, and 71% registered a drop equal to or greater than 70%. Between August and December this year, most members expect to make only 33% of what was made in the same period last year.

The companies that responded to the survey held 3,200 events between March and July 2019. This year, they held just 245, most of which took place in a virtual environment and with lower profit margins. Between August and December last year, 5,900 events were held; companies expect to hold only 284 events in the same period this year.

According to this study, 16% of companies dismissed workers, while 84% kept their jobs. By December, more than half of the members expect to dismiss people, if there is not enough support. It should also be noted that, from the approximately two thousand freelancers who would have been hired between March and June, none were hired.

APECATE also asked companies about until what month they can pay their fixed costs, based on the current treasury, and 61% answered that they will only be able to endure until the end of the year. And regarding the new measures presented on August 1st, members were unanimous in considering that they are insufficient to preserve both activity and jobs.

Tags: APECATE, Study, Events