Gloomy outlook for hotels and restaurants
After years with significant revenue growth, the Faroese tourism industry was going from strength to strength, with a projected annual revenue of DKK 1.5 billion in 2025.
But due to the corona pandemic, the industry has suddenly gone from being a key element of the national economy to potentially reducing the Faroese GDP by up to DKK 800 million in 2020.
>> SEE ALSO More than 4,000 sign up for job retention scheme
This is one of the conclusions of a report by auditing firm Deloitte, commissioned by Betri bank.
The report also suggests that the Faroese rescue packages introduced to protect businesses during the corona crisis are not only relatively modest compared to the other Nordic nations; it is also doubtful whether they can ensure that the Faroese tourism industry can recover financially from this crisis.
The Faroese corona lockdown was imposed on 12 March. According to Statistics Faroe Islands, 4,228 overnight stays in hotels were registered in March 2020. In March 2019, this number was 10,376, and in 2018 it was 11,391.
Translated by prosa.fo