Tartu wants more government support measures for hard-hit sectors

Tartu.
Tartu. Source: Tarmo Haud.

Tartu is calling for additional support measures from the government for sectors which have been hit hardest by the effects of the coronavirus.

Tartu City Government has proposed the creation of additional support measures to the government for accommodation, catering, travel, entertainment and transport companies, as well as education, culture and youth work associations. Covering salary and rental costs has also been raised.

Mayor of Tartu Urmas Klaas (Reform) said the coronavirus and associated restrictions have had a big negative impact on the economy and that some businesses have already lost more than 100 percent of their income.

Klaas said the crisis has been especially hard on the catering, accommodation, travel, entertainment and transport sectors. "The summer period brought some relief, but the prospect of survival is small," he said. 

In a letter sent to the government, he wrote: "The turnover of Tartu catering companies, for example, has decreased by 60-70 percent during the year. Entrepreneurs are extremely pessimistic today and believe that if the restrictions continue it will be necessary to lay off employees and some companies will have to close down."

The letter also emphasised the impact on activities in the education, culture, sports and youth sectors. Costs have been high and revenue low.

Klaas said it is important to note that when the economic situation of families deteriorates it is hobby education and hobby activities that families primarily give up.

Public events organizations also need support as the outlook is not expected to be much better at the beginning of 2021, Klaas said.

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Editor: Helen Wright

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