Sapana Satyal '24 | Opinion: Second Wave Impacts on Berlin Businesses
Just as Berlin's economy is beginning to recover from the last lockdown, businesses are facing the risk of another economic shutdown. While this does not have a huge impact on corporations, many small businesses are facing financial struggles. The culture and media sectors have been hit especially hard by restrictions, as well as the hotel industry. While the majority of German businesses are not large corporations, these smaller businesses, as well as the general public, are eagerly waiting for government assistance. In the meantime, they are also coming up with new ways to create revenue with COVID restrictions including, but not limited to, offering vouchers that customers can buy and redeem once the lockdown ends, displaying items in windows (which customers can then request via email or call), and take out options for food.
Additionally, the hospitality industry in Berlin is facing a crisis as lockdowns and travel bans continue to limit the business they are able to bring in. Those who own hotels and other venues, especially those who have not received loans from a bank, are requesting more government assistance in order to continue running their businesses, and to make sure their investments in the hotel do not go to waste. Because occupancies have been down from what is usually around 60% to just 12% in December, hotel owners believe that the government assistance is simply not sufficient. Fortunately there is some emergency aid in place provided by the German Federal Ministry for Economic Affairs and Energy for those who work in these sectors, as well as aid for those directly affected by the temporary business closures and those who are self-employed, but for the sectors that are particularly vulnerable due to the pandemic, this aid is insufficient.
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