The Association of Catering Establishment (ACE) has warned that many establishments in the industry are on the brink of closure, and called for cash-strapped bars and restaurants to be offered the same level of state aid as hotels.

ACE’s remarks, as reported by the Times of Malta, say that the second wave of COVID-19 infections had again “knocked out” the industry, following a summer where signs of recovery had been present, in part thanks to the Government voucher scheme, and some levels of touristic activity.

ACE secretary Matthew Pace reportedly said that the pandemic has sped-up deteriorating situations of certain establishments, which were already struggling due to operating in a labour-intensive industry. Establishments in prime sites were particularly hard hit by high rents.

In March, bars and restaurants were forced to close their doors, with the latter only able to provide take-away services. After reopening in May, the Government again announced the closure of bars, while leaving restaurants open, throughout November and December as Malta battles a second wave of infections.

Surveys carried out by ACE of its members found that summer turnover translated into around 65 per cent of what the same establishments earned during the corresponding months in 2019. Mr Pace reportedly said that since the third week of September to date, that figure had dropped to just 35 per cent.

One matter for particular concern, Mr Pace noted, is that in an industry known for high staff turnover, the Government’s COVID-19 wage supplement only covers those workers who remained in the same job since March.

Staff members brought on to replace those who left from March onwards are not covered by the wage supplement, meaning the employer has to fork out for the full wage.

Mr Pace acknowledged that most of ACE’s members are still operational thanks to the Government wage subsidy, but pointed towards the union’s repeated calls for the Government to give catering establishments the full wage supplement like hotels receive.

“The feedback we are being given is that this will happen. The sooner we get this imminent support the easier it will be for us to survive.”