The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

35 they are available, on the basis of audited or tax accounts. 143 Beyond direct grants, the aid can be provided as tax and payment advantages, repayable advances, guarantees, loans and equity, and similarly to 3.1 TF aid, the nominal value of all forms and instruments of aid count against the 10 million euro cap and reduce the amount of uncovered fixed costs. 144 The advantage of this aid category is that it is a simpler alternative to Article 107(2)(b) TFEU aid (compensation of losses caused by exceptional occurrences), as there is no need to prove any causal link between the pandemic/lockdown measures and the losses of the beneficiary. However, the scope of undertakings eligible for 3.12 TF aid is in principle narrower than those eligible for Article 107(2)(b) aid because of the minimum 30% turnover loss criterion. Also, the compensation of losses is limited to 70%/90%, while in the case of Article 107(2)(b) aid, at least theoretically, full compensation of losses is possible (for instance if a business is completely closed down due to containment measures). The need to check for overcompensation, however, resembles the similar principle applied in Article 107(2)(b) TFEU based decisions. Also, 3.12 TF aid applies an exclusion to certain undertakings in difficulty, which is not a requirement for under Article 107(2)(b) TFEU. This simplified approach makes this category of aid ideal for helping undertakings in the tourism sectors, even for micro and small undertakings. The SA.59477 145 case shows how 3.12 TF aid, a general aid category that enables the coverage of losses, can be used in much more specific circumstances, and how aid categories can be used to complement each other. In November 2020, the Hungarian government imposed a lockdown, which affected hotels and accommodation providers, and naturally led to the cancellation of reservations made before the lockdown. The Hungarian government launched a scheme to compensate these service providers for cancellations made prior to the lockdown for a period of one month after the start of the lockdown. The aid amount was equal to 80% of the value of cancelled reservations (foregone revenue). 143 Point 87(c) of the Temporary Framework. 144 Point 87(f) of the Temporary Framework. 145 Commission decision C(2020) 9106 final of 10 December 2020 (SA.59477 (2020/N) COVID-19: Scheme for the protection of the economy during the second state of emergency).