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BUSINESS

Italy’s shops and restaurants struggle to reopen with new rules and few customers

SPECIAL REPORT: The reopening of Italy's restaurants, cafes and stores earlier this week brought hopes of a return to normality for Italy after a two-month coronavirus lockdown. But in reality, the picture is not so bright.

Italy's shops and restaurants struggle to reopen with new rules and few customers
A closed restaurant on Via Veneto in central Rome on May 21st. Photo: Tiziana Fabi/AFP

In a sign of further trouble ahead for Italy's economy, many of these establishments remain shut as insufficient funds, or because they say new sanitary rules or a lack of clientele have made reopening unrealistic.

“Were I to open tomorrow, I wouldn't have one client,” said Pietro Lepore, owner of Harry's Bar on Rome's tony Via Veneto.

“There are 12 luxury hotels on the street. Sixty percent of my business comes from their clientele and they're all closed,” Lepore, whose 24 employees are all furloughed, told AFP.

It is the same in Venice, where the spokeswoman for the city's shopkeepers' association, Cristina Giussani, mused whether cafes and restaurants should open “for seagulls and pigeons” given the utter lack of tourists.

READ ALSO: Will Italy's tourism businesses ever fully recover from the coronavirus shutdown?


Italy's economy is highly dependent on tourism. The sector makes up 13 percent of the country's output while employing about 4.2 million people, accounting for 15 percent of all jobs in Italy.

Some are counting on the reopening of Italy's borders to Europeans in early June as a crucial turning point. But many wonder whether tourists will feel comfortable enough to travel, or whether they'll have the money to do so.

Italy's small and medium-sized business association, Confesercenti, found in a survey published on Saturday that nearly a third of the million establishments allowed to reopen on Monday said they would not.

For 68 percent, reopening would not be profitable. Thirteen percent said they had health and safety concerns and an equal number said government directives were too vague.

“For businesses, reopening is a race against time and obstacles,” wrote the group, which called for “direct economic aid.”

“Entrepreneurs fear the impact of the rigidity of the guidelines on activities, and remaining squeezed between the increase in operating costs and the foreseeable drop in revenues,” Confesercenti said.
New regulations – which can result in fines if not followed – are particularly hard to respect for Italy's many smaller establishments, Confesercenti's Valerio Maccari said.

“The typical Roman trattoria, for example, does not have much room and in this case ensuring physical distance becomes an insurmountable problem,” he said.

The rules include sanitary measures such as setting up tables with one metre (3.3 feet) of distance between them and twice-daily cleaning of the establishment, as well as masks and gloves for workers.

But restaurants also have to contend with more paperwork, such as taking down names and phone numbers of customers for easier tracking in the case of an eventual coronavirus case.

READ ALSO: 

In Rome, restaurant owner Tatjana Pavelic said earlier this week she was opening just one of the four restaurants she operates along a usually busy street leading to the Pantheon.

Tourists were nowhere to be seen, and her lunch traffic from local clients was also disrupted because of people still working from home, she said.

Bankrupt tomorrow?

“We have so many clients who work in offices,” said Pavelic. “And tourism hasn't started even for Italians.”

Pavelic said she had asked for a reduction on her rents, which are based on the amount of foot traffic, but was still awaiting an answer.

Public anger is mounting.

Throughout the capital, protest posters are seen in many shop windows: “Without government help, we can NOT reopen”.

In Milan on Saturday, small shop owners and taxi drivers held a protest, saying the government had offered no concrete measures to help them. Many are calling for a tax hiatus to help them get through the difficult period.

“I'm not opening today to go bankrupt tomorrow,” read some of their banners.

“All of us here want to work,” shouted one protestor into a megaphone. “But we need support to do so.”

A survey by the Italian Federation of Public Establishments (Fipe) on April 4 found that 96 percent of bars, restaurants and similar businesses considered governmental support insufficient.

They cited the need for immediate liquidity to cover the shortfalls in revenue, or credit with zero or subsidized interest, as well as the cancellation of taxes due.

At the other end of the Italian boot, in Avola, Sicily, restaurant owner Gianpaolo Molisena has decided to remain closed for now, one of the approximately 5,000 such establishments keeping their doors shut in Sicily, a quarter of the total.

Were he to reopen, it would cost Molisena “100 (euros) to collect 30,” he said. The restaurant usually employs six people.

“Besides, the spirit of the restaurant is not there, the charm of dining with friends … is lost with all these rules,” he said.

“The customers feel under surveillance.”

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HEALTH

Covid-19 still causing 1,000 deaths a week in Europe, WHO warns

The World Health Organization's European office warned on Tuesday the risk of Covid-19 has not gone away, saying it was still responsible for nearly 1,000 deaths a week in the region. And the real figure may be much higher.

Covid-19 still causing 1,000 deaths a week in Europe, WHO warns

The global health body on May 5 announced that the Covid-19 pandemic was no longer deemed a “global health emergency.”

“Whilst it may not be a global public health emergency, however, Covid-19 has not gone away,” WHO Regional Director for Europe Hans Kluge told reporters.

The WHO’s European region comprises 53 countries, including several in central Asia.

“Close to 1,000 new Covid-19 deaths continue to occur across the region every week, and this is an underestimate due to a drop in countries regularly reporting Covid-19 deaths to WHO,” Kluge added, and urged authorities to ensure vaccination coverage of at least 70 percent for vulnerable groups.

Kluge also said estimates showed that one in 30, or some 36 million people, in the region had experienced so called “long Covid” in the last three years, which “remains a complex condition we still know very little about.”

“Unless we develop comprehensive diagnostics and treatment for long Covid, we will never truly recover from the pandemic,” Kluge said, encouraging more research in the area which he called an under-recognised condition.

Most countries in Europe have dropped all Covid safety restrictions but some face mask rules remain in place in certain countries in places like hospitals.

Although Spain announced this week that face masks will no longer be required in certain healthcare settings, including hospitals and pharmacies, with a couple of exceptions.

Sweden will from July 1st remove some of its remaining Covid recommendations for the public, including advice to stay home and avoid close contact with others if you’re ill or have Covid symptoms.

The health body also urged vigilance in the face of a resurgence of mpox, having recorded 22 new cases across the region in May, and the health impact of heat waves.

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