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

40 approved an aid scheme to potato growers because the Netherlands government had effectively shut down catering and hospitality outlets, significantly reducing demand for potatoes for processing. Due to a lack of demand, potato prices dropped by 90%. The scheme used the flexibility offered by the legal basis as it was used to compensate some producers and for some of their losses: only those producers were eligible whose revenues dropped in the eligible period (March-June 2020) by more than 30% and only partial compensation was available (70% of the turnover loss was compensated at a 70% intensity at a maximum, with additional ceilings depending on business size, and with reporting requirements to ensure there is no overcompensation in case business improves). The SA.57284 case 157 involved a compensation scheme for restaurants in Finland, a sector hit by both the lack of international travel and administrative restrictions. The Finnish government, to halt the spread of the coronavirus, shut down restaurants, cafés and bars in March 2020. The scheme was initially designed to compensate the losses of these outlets on the basis of their dropped turnover. However, at the time, immediate help was needed, which meant that the Finnish authorities had to develop a calculation method on the basis of January and February 2020 turnover data (the reference period), with 5-15% of the reference period turnover paid as compensation. As this was a simplified calculation to project losses, the Finnish authorities made commitments to have any overcompensation, established on the basis of annual accounts, repaid by the beneficiaries. The German SA.58464 case 158 meant the approval of an aid scheme for a specific subsector of Bavarian accommodation providers (youth hostels, school country homes and family holiday centres). As a result of official orders and recommendations, school trips were cancelled in early 2020, resulting in an effective shutdown of the eligible facilities. As a compensation, the Bavarian government offered to compensate 60% of the losses of these facilities, which was calculated on the basis of the beneficiary’s 157 Commission decision C(2020) 3607 final of 28 May 2020 (SA.57284 (2020/N) COVID-19: Finnish damage compensation scheme for restaurants). 158 Commission decision C(2020) 6790 final of 29 September 2020 (SA.58464 (2020/N) COVID-19: Bavarian Assistance Programme to safeguard the Social Infrastructure of Youth Hostels, School Country Homes, Youth Education Centres and Family Holiday Centres).