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Maciej Dębski et al., Tourist Accommodation Establishments during the Pandemic – Consequences and Aid Report on a Survey among Polish Micro-enterprises Offering Accommodation Services (2021)

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Article by Maciej Dębski, Małgorzata Borkowska-Niszczota and Robert Andrzejczyk in the Journal of Intercultural Management, Vol. 13, No. 1, March 2021, on how micro-enterprises offering tourist accommodation in Poland fared in the first COVID-19 lockdown and after. The pilot survey, run at the end of 2020, went to 1000 businesses and 47 completed it. The first lockdown hit them hard and summer brought only a slight recovery, yet most reopened in spring and many kept staff levels unchanged despite lower income, mainly from fewer foreign visitors. Safety measures were a financial burden, and the owners expected state subsidies or exemptions.

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“Maciej Dębski et al., Tourist Accommodation Establishments during the Pandemic – Consequences and Aid Report on a Survey among Polish Micro-enterprises Offering Accommodation Services (2021).” Original at reference-global.com. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/maciej-d-bski-et-al-tourist-accommodation-establishments-during-the-pa-4d13bbd2a6/, SHA-256 b03c690bf47148d7814ad9a6845a9e15d6494f214911d69d218d443cb0095fc6.

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                                 Journal of Intercultural Management
                                 Vol. 13 | No. 1 |March 2021 | pp. 1–25
                                 DOI 10.2478/joim-2021-0001




Maciej Dębski                    Małgorzata Borkowska
University of Social Sciences,   -Niszczota
Warsaw, Poland                   University of Social Sciences,
mdebski@san.edu.pl               Warsaw, Poland
ORCID ID: 0000-0002-8339-5073    mbniszczota@san.edu.pl
                                 ORCID ID: 0000-0003-2169-6062


Robert Andrzejczyk
University of Rzeszów,
Rzeszów, Poland
randrzejczyk@prac.ur.edu.pl
ORCID ID: 0000-0001-5992-3123




Tourist Accommodation
Establishments during
the Pandemic – Consequences
and Aid Report on a Survey
among Polish Micro-enterprises
Offering Accommodation Services
                                         Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk



ABSTRACT

Objective: The key objective of the article was to seek the answer to the question how the
limitations of the first COVID-19-related lockdown affected small businesses offering accom-
modation services and how the businesses fared during the unlocking period. The side objec-
tive of the paper was to identify the actions undertaken in said businesses aimed at providing
safety for the guests as well as to show the expectations such businesses had when it came
to government aid.

Methodology: In order to meet the objectives and to verify the working hypothesis, empirical
research using the diagnostic survey method was conducted at the end of 2020. The article
provides the results of the pilot survey carried out on a selected group of microbusinesses
providing accommodation services. The link to the questionnaire was sent to 1000 entities, of
which 47 completed it correctly.

Findings: The tourist industry is among those affected most by the COVID-10 pandemic. The
research revealed that during the first lockdown, the closure of accommodation businesses had
a relatively strong impact on the subjects of the research. The situation remained similar during
the first months of lifting of the restrictions. The summer brought a slight recovery albeit not as
big as was expected. Nevertheless, strong premises were found which supported the hypothesis
saying that such subjects – due to their size-dependent nature – fared relatively well in all three
sub-periods. For the most part, such entities re-started their operations in spring. In many of
them, the level of employment remained unchanged despite the significant drop in their incomes
– mainly resulting from a lower number of foreign visitors and - to a lesser extent – from lower
prices. The struggle for customers forced the subjects to introduce various solutions aimed at
providing safety, which proved a considerable financial and organisational burden.

Value added: The research is one of the first attempts in Poland to measure the impact of
lockdown on the functioning of accommodation businesses and one of the few focusing on
microbusinesses. The findings show to what extent the lockdown affected the operations of
the entities in question, how the lifting of restrictions changed the situation in the summer,
and what actions were taken to minimize the risk of infection.

Recommendations: The findings show that the analysed entities are able to function in sani-
tary regime and that they support solutions which will allow them to offer their services in as
safe a way as possible. On the other hand, they expect strong support from the state including
subsidies or exemptions. It is to be expected that the need for this form of aid will grow even
stronger after further lockdowns.

Key words: tourism, pandemic, accommodation services

JEL codes: M10, M30, Z32



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                            Tourist Accommodation Establishments during the Pandemic – Consequences and
                      Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




Impact of Epidemics on Tourism

Tourism industry is a sector much vulnerable to a number of factors, in-
cluding the ones having definitely negative impact. Based on the previous
experiences following different types of crisis, also the ones that occurred
in the 21st century, changes in the consumer behaviour may be observed,
such as refraining by some tourists from travelling, which is driven by their
fear of possible threats. As it was pointed, fear sources may be diverse. For
instance, they may be linked to war, political situation, terrorism, climate
conditions or a risk of being afflicted with a disease, and the tourist demand
strongly depends on different types of disasters and crises (Cro & Martins,
2017). To name only a few examples one should think of the annexation of
Crimea by the Russian Federation (Ivanov, Idzhylova, & Webster, 2016) or
11/9 terrorist attacks (Blade & Sinclair, 2003; Hall, 2002).
    It is suggested that financial crises and security-related crises affecting
tourism industry are man-made crises most often analysed in the literature
(Li, Wen, & Ying, 2018). Particularly terrorist attacks that are immediately re-
ported in media have strong and quick impact on tourism industry (Hajibaba,
Boztug, & Dolnicar, 2016, p. 49).
    The risk of being afflicted with a disease is an important factor affecting
tourism demand, still it is more frequently associated with the developing
countries, rather than the developed ones (Jonas, Mansfeld, Paz, & Potasman,
2010). Professional literature analyses how the risk of different diseases,
like borreliosis, affects the tourism industry (Donohoe, Pennington-Gray,
& Omodior, 2015). Research place great emphasis on virus threats and
epidemics they cause. The impact of pandemics like SARS (Cooper, 2005;
Rittichainuwat & Chakraborty, 2008; Breda, 2004; Henderson & Hallinh, 2007),
influenza A/H1N1 (Rassy & Smith, 2013; Solarin, 2015), or Avian Flu (Page et
al., 2006) has been broadly discussed in the literature. However, one should
bear in mind that also other diseases, even if they do not affect the human
health and life directly, have also strong impact on the tourism sector. As


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                                  Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




the English Tourism Council assessed, Foot and Mouth Disease could result
in economic losses estimated at £5 billion in 2001 (Miller & Ritchie, 2003).
   Both epidemic, as well as different diseases described in the tourism
context are analysed taking into consideration different aspects of this issue.
Analysis of protective behaviour is one of the aspects examined in research
on health risk related with travelling (Chien, Sharifpour, Ritchie, & Watson,
2017). Sensations seeking, defined as “need for varied, novel and complex
sensations and experiences and the willingness to take physical and social
risks for the sake of such experience” is another issue connected with the
tourists’ attitude towards threat (Zuckerman, 1979, p. 10, as cited in Lepp &
Gibson, 2008, p. 741). It seems that tourists seeking “experience” are more
willing to take risk while travelling to destinations known for social unrest or
the risk of being afflicted with an infectious disease. According to research
carried out so far young people are more ready to run the risk, even the one
connected with epidemic (Aro et al., 2009).
   Analysis of the epidemic impact on the tourist industry seems to be
particularly often and profoundly examined research area. As it has been
pointed, researchers usually analyse the impact of a crisis (like pandemic)
on particular destination (Teitler-Regev, Shahrabani, & Goziker, 2013, p. 85). It
remains indisputable that epidemics and all threats related with them result
in the reduction of tourism demand in destinations where a given infectious
disease is present. However, the scale of shift in demand as well as the
consequences suffered by a given destination, or by other areas in case of
demand relocation, leaves the question open.
   According to research carried out in 2015, 25% of international tourists
changed their holiday plans due to safety concerns or health conditions
present in destinations they were to visit (Nicula & Onetiu, 2016, p. 196).
However, these are not diseases that constitute the main reason for can-
celling departures. In one of the surveys only 31% of respondents provided
that reason, whereas 83% feared terrorist attack and 49% were afraid of
armed conflicts (Nicula & Onetiu, 2016, p. 196). On the other hand, there


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                             Tourist Accommodation Establishments during the Pandemic – Consequences and
                       Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




are also opinions that the impact of SARS epidemic in East Asia on tourism
industry was four times or even five times greater than 11/9 attacks in the
USA (Au, Ramasamy, & Yeung, 2005, pp. 86–87).
    Economic costs of epidemic, borne also by the tourism industry, are
incredibly high (Sułkowski, 2020). The costs of bird flu pandemic were esti-
mated at 3.1% of the global GDP in 2007 (Tew, Lu, Tolomiczenko, & Gellatly,
2008, p. 338). The International Labour Organization estimated that due to
SARS epidemic in China and Hong Kong and the resulting decrease in trav-
els, 5 million jobs could have been lost worldwide in 2003. The World Travel
and Tourism Council estimated that that year China would lose 2.8 million
jobs, still this figure is likely to be much higher if indirect impact is taken into
consideration. Financial loss was estimated at 20.4 billion in the China GDP
(Breda, 2004). It was estimated, that in percentage terms, private travels in
China in 2003 decreased by 14%, travel and tourism industry employment fell
by 20%, and the decrease in travel and tourism industry GDP reached over
20% (WTTC, 2003). Between December 2002 and June 2003, the number
of tourist travels to Hong Kong was 4 times lower (Au, Ramasamy, & Yeung,
2005, p. 86). SARS infections, also the ones which ended with patient’s death,
were also reported in Canada. To name an example, in Toronto itself the loss
suffered by the tourist industry from 6 April to 1 June 2003 was estimated
at 180 million dollars, whereas between 2 March and mid-July the figure
exceeded 340 million, resulting in over 12 thousand jobs lost, mainly in the
accommodation (Tew, Lu, Tolomiczenko, & Gellatly, 2008, pp. 334–335). It is
worth mentioning that the decreased number of tourists is directly reflected
in the loss suffered by the hotel, restaurant, transport, entertainment or
souvenir sectors, and due to multiplier, it indirectly affects other cooperating
sectors and further branches (Marjański & Sułkowski, 2021).




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                                          Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




Figure 1. Stages of epidemic vs tourism




Source: own compilation.



    Figure 1 presents 4 stages of epidemic and its impact on tourist des-
tinations. Special attention should be paid to the last stage, as this is the
time when tourist managers can exert the strongest influence on creating
tourism demand, and thanks to proper initiatives loss caused by epidemic
is likely to be minimised. This is the reason why even at the present stage of
Coronavirus pandemic it is advisable to examine tourist plans in a medium
to long-term perspective.
    1) Stage I – first infections and epidemic spreading – initial stage during
    which number of infections increases and first news is reported in media,
    but at the same time the impact on tourist travels is relatively low, however
    with some decline in bookings and planned arrivals.
    2) Stage II – increased number of infections, declaration of epidemic
    and its further spreading – news on epidemic is broadcast in headlines,
    there is a growing concern among tourists, planned arrivals are cancelled.
    3) Stage III – turning point and extinction of epidemic – the number of
    infections decline, but the travel concerns continue to exist, tourist sector
    still suffer heavy loss, media news on epidemic situation in a given state
    becomes relatively less frequent.




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                             Tourist Accommodation Establishments during the Pandemic – Consequences and
                       Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




    4) Stage IV – trust restoration – post-epidemic period, when trust to par-
    ticular destinations needs to be rebuilt, media lose interest in the epidemic
    despite great potential in supporting recovery of tourism.
    Other authors point that this stage and its characteristics are relatively
rarely analysed (Mao, Ding, & Lee, 2010). As mentioned above, outbreak of
epidemic causes arrival cancellations in a given destination, and the epidem-
ic-related concerns are likely to continue long after its termination. Initiatives
aimed at recovery of tourist demand and preventing the customers from
cancellation of their bookings are of great importance both in the situation
presented above and other types of crises (Hajibaba, Boztug, & Dolnicar,
2016, p. 49). In the case of Covid-19 pandemic due to worldwide problems
the situation will be certainly special.
    The significant role of media (Walters, Mair, & Lim, 2016) in the process
of tourist demand shift due to risk of being afflicted with a disease is worth
emphasizing. It is possible that certain number of infections will not grow to
epidemic, but still the topic will excite media interest and arouse travel con-
cerns. Specialists point out that the media are able to create inaccurate im-
pression that travelling to certain destination entails a risk (Valencia & Crouch,
2008, p. 25). In such a situation, despite little actual threat, the tourism sector
may suffer a heavy loss. Emphasis is put on the fact that there is a positive
correlation between being aware of a risk and willingness to run it (Wang &
Wang, 2018), and this is the media that to a great extent bear responsibility
for creating news in which travel-related risk awareness is raised.
    Moreover, an image created by the media may be long-standing (Beirman,
2003, as cited in Valencia & Crouch, 2008, p. 25), which is why Stage IV aimed
at restoration of trust to a given destination is so important. In the case of
SARS, it was pointed out that tourism sector suffered consequences of the
epidemic even 5 years after (Tew, Lu, Tolomiczenko, & Gellatly, 2008).
    Obviously, also COVID-19 pandemic is a subject of numerous analyses,
including the ones concerning tourism industry. Firstly, it needs to be empha-
sized that its range and impact is incomparable with the epidemics discussed


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                                 Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




above. Secondly, the epidemic is ongoing. It seems that according to the
scheme presented in figure 1, many regions in the world, like Israel, are about
to enter Stage III, which is greatly thanks to mass vaccination. On the other
hand, due to dynamics observed during the pandemic and new virus variants
discovered by the scientists, extinction of the pandemic remains uncertain.
   The whole world suffers the pandemic negative consequences. Closed
borders, transport restrictions, limited functioning of hotels and closed
entertainment venues due to COVID-19 outbreak have resulted in crisis
suffered by the tourism industry, which is estimated to be even ten times
higher than the 2009 crisis. Data presented by the UNWTO alone concerning
international tourism industry shows heavy loss. The number of international
travels between January and October 2020 declined by 72% as compared
to the same period in 2019, with the loss amounting to 935 billion dollars.
Mass vaccination gives some prospects for the tourism industry to recover,
however, as UNWTO estimates, to achieve the 2019 level we must wait be-
tween 2 and 4 years (Wolska, 2020).
   Restrictions in the movement of persons and limited activity of the hotels
resulted in the sharp decline in the number of individuals using tourist accom-
modation establishments also in Poland. During lockdown in April 2020 there
was almost no tourist activity and the number of tourists in accommodation
establishments was 28 times lower as compared to the previous year. The
situation was improving in the following months, but during the summer
holiday there were 30% fewer tourists than one year earlier (Krzyżaniak,
2020). As compared to 2019, in 2020 the number of tourists using tourist
accommodation establishments declined by 49.9%. In 2020, only 26.8% of
overnight accommodation in all tourist accommodation establishments was
occupied, which means a decline by 13.8% as compared to the previous year.
Decreased number of tourists visiting accommodation establishments was
reported in all Polish provinces, with the lowest decline in West Pomerania
Province (by 34.4%) and Warmia-Masuria Province (by 36.6%), and the highest
decline in Mazovia Province (by 61.8%). According to data presented by the


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                            Tourist Accommodation Establishments during the Pandemic – Consequences and
                      Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




Statistics Poland (GUS, 2021), in terms of using overnight accommodation
the highest figures were reported during summer holiday in July (38.3%) and
August (44.5%), but as compared to the similar period in 2019, the figures
declined by 13.5% and 8.7% respectively (GUS, 2021).
    Beyond doubt it is still too early to assess pandemic impact on the tourism
industry in a complex way. Nevertheless, efforts aimed at doing some forecasts
are being made (Bouarar, Mouloudj, & Mouloudj, 2020; Khan & Hashim, 2020).
The current situation is also being compared with the previous epidemics;
however much emphasis is given to the uniqueness of the present crisis
(Gössling & Scott, 2021). It is clear today that the actual pandemic impact is
different/stronger than it was initially assumed (Foo, Chin, Tan, & Phuah, 2020).
    Despite the fact that the pandemic is still ongoing, there are some
efforts to develop possible crisis recovery scenarios – either based on
econometric models or relying on a panel of experts (e.g., Delphi method).
However, stress is put of the fact, that both limited access to data and
unpredictability of pandemic development restrain possible reasoning
(Zhang, Song, Wen, & Liu, 2021).
    There is also no element of surprise that some research is dedicated
to particular segments of the tourist industry, like the ones related with the
transport services, overnight accommodation or operation of the travel agen-
cies (Ghazali & Ishak, 2021). The following study focuses on the operation of
small- and micro-enterprises offering overnight accommodation services.


Research aims and methodology

Tourist industry is characterised by strong diversity and is made of differ-
ent entities. Establishments offering accommodation services make the
key group and taking this group into consideration micro-enterprises are
of special interest. The entities in question manage small establishments,
which in the pandemic perspective should constitute an asset and be con-
sidered as competitive advantage, as the social distancing requirement is


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                                 Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




more likely to be observed there. According to data presented in the Sta-
tistical Yearbook of the Republic of Poland, in 2019 there were 11251 tourist
accommodation establishments in Poland, out of which 2635 constituted
hotels and 1064 other hotel facilities. Boarding houses, motels and “other
facilities” i.e., the research potential addressee, constituted the remaining
70% (Statistical… 2020, p. 409).
   The major aim of the research was to determine how pandemic-related
restrictions introduced during the first lockdown affected small facilities and
how these establishments cope during the economy unfreezing. Research
hypothesis was therefore as follows: micro-entrepreneurship offering over-
night accommodation services, due to their sizes, did relatively well while
coping with the COVID-19 restrictions introduced in Poland in 2020, both
during the lockdown, as well as spring and summer economy unfreezing.
Another aim of the research was to identify actions undertaken by these
establishment in order to guarantee the tourists safety. The research also
aimed at uncovering respondents’ expectations in terms of aid to be provided
to micro- and small-enterprises offering overnight accommodation services.
   47 accommodation establishments participated in the research. Rooms for
rent (29.8%), agrotourism lodgings (27.7%) and boarding houses (12.8%) made
the greatest share of respondents. Apart from the above-mentioned facilities,
the research covered also other types of facilities, i.e., complexes of tourist
cottages, villas, and excursion hotels. Most establishments were located in
the mountains (78.7%) and at the seaside (10.6%). Out of all establishments
91.5% operated all year round. Family-owned enterprises constituted 80.9%.
   The research was conducted in November and December 2020. Par-
ticipation invitation letters were sent via e-mail to 1000 establishments;
moreover, 150 phone calls to the prospective respondents were made to
strengthen the request. 47 establishments responded positively, which make
only 5% of all entities to which the survey link had been sent. Of course, this
cannot be considered as satisfactory, and therefore results gathered must
be considered as the first stage of the ongoing research aimed at assessing


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                             Tourist Accommodation Establishments during the Pandemic – Consequences and
                       Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




pandemic impact on small-sized tourist enterprises in Poland. On the other
hand, that situation was partly explicated during the phone calls. Large number
of establishments were run by elderly persons who were often unable to use
e-mail correspondence. Moreover, due to situation caused by the lockdown
many owners were not interested in taking part in the survey.


Results

In the first part of the questionnaire, respondents were asked to assess the
establishment’s standing at the outset of the pandemic. That period was
divided into 3 sub-periods: lockdown and far-reaching restrictions affecting
the tourism sector – March–April; lifting the restrictions – May–June; summer
holiday – July–September 2020.
     During the research respondents were asked to specify the date of
re-opening the establishment following the economy unfreezing in the spring
2020. Slow re-opening started in April (that month only 4.2% of establish-
ments re-opened – 2 respondents). Most of the respondents indicated June
(40.4% – 19 respondents), and a little fewer May (31.9% – 15 respondents).
Another 19.1% of the surveyed establishments re-opened in July (9 entities).
2.1% of the respondents (1 establishment) was closed even during the whole
summer holiday.
     The aim of the research was to determine what kind of changes the estab-
lishments experienced and to what extent (discretionary opinion – expressed
in % as compared to the previous year) COVID-19 (during spring 2020 lock-
down, from the moment of lifting restrictions to June and during the summer
holiday) affected: employment, employees remuneration, occupancy level
in the establishment, share of foreign tourists, duration of the tourists stay,
sales revenues, room rates, maintenance costs resulting from an obligation
to observe sanitary requirements. Results are presented in tables 1-3.




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                                             Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk



Table 1. Changes experienced by the accommodation establishments during lock-down as compa-
red to the previous year

              decline (in %)                     increase (in %)                     no           not appli-
                                                                                     changes      cable (own
              1–29    30–59    60–99   100       1–29    30–59     60–99    100
                                                                                                  workforce
                                                                                                  is used)
 employ-      2       4        3       4         0       0         0        0        23           11
 ment
 employ-      7       2        5       4         2       1         0        0        16           10
 ees remu-
 neration
 revenues     5       12       13      13        3       0         0        0        1            0
 on service
 sales
 estab-       8       6        4       0         9       5         1        2        12           0
 lishment
 mainte-
 nance
 costs


Source: own compilation based on questionnaire survey.


   According to table 1, during the lockdown almost 50% of establishments
did not change employment level. Individual establishments downsized
employment (in different percentage share), including 4 cases (8.5%), where
downsizing reached 100%. Increased employment was not reported in that
period. In terms of remuneration, conditions were almost the same – large
group of establishments – 34% – did not change it, but some establishments
lowered employees’ remuneration in different percentage share. During
lockdown, 91% of establishments reported lower revenues on service sales.
In percentage terms the said decrease significantly differed. Decline in the
revenues on service sales reaching 1–29% was reported by the fewest number
of establishments. The remaining ranges (concerning decline in revenues)
was reported by similar number of establishments (12–13 respondents). In
terms of maintenance costs during the lockdown, 38% of accommodation
establishments reported decline indicating different percentage ranges,
whereas for 36% of them maintenance costs were higher. Quite a large num-
ber of establishments claimed there were no changes in the maintenance
costs – 25.5% of respondents.


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                                     Tourist Accommodation Establishments during the Pandemic – Consequences and
                               Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services


Table 2. Changes experienced by the accommodation establishments from the moment of lifting
restrictions to June (number of establishments) as compared to 2019


                  decline (in %)                     increase (in %)                        no           not ap-
                                                                                            changes      plicable
                  1–29    30–59    60–99      100    1–29     30–59      60–99      100
                                                                                                         (own
                                                                                                         work-
                                                                                                         force is
                                                                                                         used)
  employment      2       4        3          2      2        0          1          0       23           10
  employees       5       3        3          2      4        1          0          0       19           10
  remunera-
  tion
  occupancy       4       18       15         5      3        1          0          0       1            0
  level
  revenues on     4       14       17         6      5        0          0          0       1            0
  service sales
  room rates      14      4        3          1      2        0          0          0       21           2
  duration of     11      13       7          2      1        0          0          0       11           2
  guests stay
  share of for-   6       2        7          20     0        0          1          0       9            2
  eign guests
  estab-          8       0        2          0      18       2          1          2       14           0
  lishment
  maintenance
  costs


Source: own compilation based on questionnaire survey.



     Table 2 shows that during the following period – from the moment of lifting
restrictions to June – in the same number of establishments (almost 50% of
respondents) employment level was not changed, similarly to the previous
period. As previously, downsizing was present in individual establishments
with different percentage share, and only in 2 establishments decline reached
100%. Also, during this period similar percentage share of respondents
reported no changes in the remuneration (40% of establishments). A num-
ber of establishments reported lower remuneration in different percentage
ranges. During the second period, 87% of establishments also reported lower
revenues on service sales. However, as compared to the previous period,
a larger number of establishments (49% respondents) reported increased
maintenance costs, which means that situation was experienced by addi-
tional 6 establishments (13%).


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                                          Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




   With respect to establishments re-opening, respondents informed about
changes in room rates, duration of guests stay and the share of foreign guests.
Results of the survey show that in 44.6% establishments room rates remained
unchanged. Large number of entities (29.7%) reported decline in room rates
ranging 1–29%. Unfortunately, during that period 70.2% of establishments
informed that the duration of guests stay was shorter.
   What is quite characteristic for that period (still foreseeable) is that 74.4%
of respondents reported significant decline in the number of foreign guests,
including 42.5% establishments where the said decline reached 100%.
Declined occupancy level was observed in the majority of establishments
(89.4%), ranging 30–59% (18 respondents) and 60–99% (15 respondents).


Table 3. Changes experienced by the accommodation establishments during the summer holiday
(July–September) as compared to 2019


                 decline (in %)                  increase (in %)                     no        not
                                                                                     chang-    applica-
                 1–29    30–59    60–99   100    1–29    30–59      60–99     100
                                                                                     es        ble (own
                                                                                               work-
                                                                                               force is
                                                                                               used)
 employment      2       3        3       1      1       2          0         0      25        10
 employees       3       1        4       1      5       1          1         0      21        10
 remuneration
 occupancy       5       15       9       1      7       3          2         0      5         0
 level
 revenues on     7       12       8       2      10      4          0         0      4         0
 service sales
 room rates      9       5        2       1      5       0          0         0      24        1
 share of for-   6       2        8       19     0       1          0         0      9         2
 eign guests
 estab-          4       2        3       0      17      6          0         2      13        0
 lishment
 maintenance
 costs


Source: own compilation based on questionnaire survey.


   Table 3 presents changes observed in the overnight accommodation
establishments during the summer holiday. As it comes to employment


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                           Tourist Accommodation Establishments during the Pandemic – Consequences and
                     Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




level, the changes were insignificant. Downsizing was reported by slightly
smaller number of establishments than during the previous period. Sim-
ilarly to employment level, also decline in remuneration was reported by
fewer establishments. That was an expected result, as firstly, during the
holiday tourist demand was definitely higher, and secondly decline in both
aspects was reported during both previous periods. During the summer
holiday some establishments (25.5%) reported increased occupancy level.
Decline in occupancy was reported by 30 establishments – 63.8%, whereas
in the previous period it was observed even in 42 establishments (89.4%).
Taking into consideration the analysed and previous periods, there was a
significant change in the number of establishments which reported decline
in revenues on service sales – this figure decreased by 12 establishments
(from 41 establishments in the previous period to 29 establishments in the
analysed period). During the summer holiday, 29.7% of establishments re-
ported increase in revenues, whereas until June that share was only 10.6%.
Similarly to the previous period, room rates were usually not changed in the
majority of establishments (51% respondents) or were decreased in different
% range (decrease ranging 1–29% was reported by the largest number of
establishments). The share of foreign guests remained almost unchanged
as compared to the previous period. Decline reaching 100% was observed
in 19 establishments. As it comes to establishment maintenance costs,
the situation was almost similar both in the analysed and previous periods.
A pretty large number of the surveyed establishments reported increased
costs during the summer holiday (17 respondents – 36.2%), whereas for
others the costs remained unchanged (13 respondents – 27.6%).
     During the survey, the respondents were asked to name actions they
undertook, as well as rules and procedures they implemented in order to
prevent negative consequences of Coronavirus pandemic and to guarantee
the tourists safety (survey results are presented in table 4). When certain
solutions were introduced, the respondents were asked to determine or-
ganisational efforts and financial burdens related therewith ranging 1–3,


15
                                          Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




where 1 – minor, 2 – medium, 3 – considerable. Where no solutions were
implemented, the effort was ranked 0. “Not applicable” (N/A) response was
possible, if a given facility did not render certain type of services or if it did
not possess equipment referred to in the question.

Table 4. Actions undertaken, rules and procedures implemented to prevent negative consequences
of Coronavirus, as well as organisational efforts and financial burdens related therewith




 Actions/rules/procedures                              3           2          1           0        N/A

 determining and controlling maximum number of 16                  10         9           4        8

 guests based on the number of rooms

 introduction of 1-week stay requirement               9           0          4           18       16

 no booking of rooms in the establishment, only 5                  1          1           12       28

 self-contained residential premises or cottages

 available for booking

 introduction of no-cash payments                      8           1          10          17       11

 separation of safe zones outside the establish- 12                2          5           13       15

 ment for each accommodated family

 common areas like gyms, playgrounds, recreatio- 14                6          4           7        16

 nal facilities were closed for guests

 no extra offers like: excursions, equipment rent, 17              2          2           8        18

 barbecue, educational activities, or health acti-

 vities

 organisational changes including pathways, incre- 9               2          2           12       22

 ased number of entrances and exits

 minimum number of guests at the reception desk 10                 9          5           5        18

 and limited time spent within the check-in area

 disinfecting equipment available for guests after 27              6          1           3        10

 each use




                                                                                                        16
                                  Tourist Accommodation Establishments during the Pandemic – Consequences and
                            Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




 increased frequency of disinfecting common to- 25                    3           2           5         12

 ilets

 placing instructions and recommendations con- 22                     8           9           5         3

 cerning health safety improvements in relevant

 places

 implementation of a special procedure to be follo- 18                4           9           9         7

 wed in case of suspected infection

 introduction of special rules to be observed in the 17               7           6           9         8

 establishment and using relevant tools to com-

 municate them

 possible purchase of personal protection equip- 11                   5           3           14        14

 ment/masks in the reception desk

 offering masks                                           11          4           4           14        14

 offering disinfectants in common areas                   29          3           8           2         5

 room cleaning procedure with additional disinfec- 32                 5           7           1         2

 tion of frequently touched surfaces

 regular disinfection of frequently touched surfa- 33                 2           4           2         6

 ces in common areas

 not accommodated individuals were absolutely 25                      6           7           4         5

 banned from staying in the establishment

 temperature measurement at check-in                      8           4           5           15        15

 obligation to fill in a health statement by the gu- 7                1           9           19        11

 ests

 Other, please specify...                                 2           2           3           11        29

Source: own compilation based on questionnaire survey.


     Numerous establishments introduced different solutions aimed at guaran-
teeing tourists’ safety. Large number of entities claimed that implementation
of those measure entailed much effort. According to data presented in the
table, for over 50% of surveyed establishments organisational and financial
efforts were most burdensome in areas such as: disinfecting equipment


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                                Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




available for guests after each use, increased frequency of disinfecting
common toilets, making disinfectants available in common areas, room
cleaning procedure with additional disinfection of frequently touched sur-
faces, regular disinfection of frequently touched surfaces in common areas,
introducing absolute ban for not accommodated individuals on staying in
the establishment. Some solutions were not implemented in a large number
of establishments. Those included: obligation to fill in a health statement by
the guests, introduction of 1-week stay requirement, introduction of no-cash
payments, possible purchase of personal protection equipment/masks in
the reception desk, offering masks, temperature measurement at check-in.
   To withstand competition and attract customers in the harsh times of
pandemic, the following actions were undertaken by the establishments:
   a) full return of advance payment without stating the reason – 31.9% of
   establishments;
   b) attractive rates – 27.7% of establishments;
   c) guests were encouraged to contact the establishment via e-mail –
   8.5% of establishments;
   d) vouchers to be used at any future time were offered instead of booking
   cancellation – 10.6% of establishments;
   e) vouchers encouraging visit in the establishment at any future time –
   14.9% of establishments;
   f) interior disinfection, room ozonation – 2.1% of establishments.
   The respondents specified an option chosen by the guests, who had
earlier made booking, due to establishments closing. In case of 57.4% of
establishments the booking was cancelled/agreement was terminated,
whereas in case of 40.4% respondents the booking was postponed.
   Asked about actions and initiatives which should be implemented in the
future to guarantee guests safety, respondents primarily opted for: proper
marketing communication concerning safety (46.8% of surveyed estab-
lishments), tourist health passports (21.3%) and safety certificates granted
to establishments (19.1%). Other suggestions were presented occasionally.


                                                                                              18
                             Tourist Accommodation Establishments during the Pandemic – Consequences and
                       Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




     Respondents expected the following forms of state aid:
 · financial aid, assistance dependent of the revenues earned in the preced-
 ing years;
 · decrease in fixed costs;
 · hotels and restaurants re-opening in sanitary regime around summer
 holiday 2020;
 · remission of real estate tax, waste management fees and other financial
 obligations when a given symbol in the Classification of Business Activities
 [Polish PKD] is required to close;
 · exemption from Social Security [ZUS] and Agricultural Social Insurance
 Fund [KRUS] payments as well as downtime pays for employees;
 · compensation of 75% of revenues;
 · resignation from closing rent-related establishments, or alternatively
 limiting the number of rented rooms e.g., to 50%;
 · separate residential premises/cottages should be available for single
 families, with limiting a residential premises/cottage per one family and
 with board provided with the observance of sanitary regime;
 · re-opening of hotel industry;
 · including all entities, also agrotourism establishments, in the financial shield,
 · non-returnable loans and grants;
 · minimum financial aid of PLN 6000–10000 a month;
 · proving free Coronavirus tests for hotel owners;
 · payment of 75% of income after taxation earned in 2019;
 · grants aimed at extending offer, in particular recreational offer;
 · compensation of lost revenues (calculated against similar period in pre-
 vious year) of at least 60%.


Summary

Assumed research hypothesis was confirmed: micro-entrepreneurship offering
overnight accommodation services, due to their sizes, did relatively well while


19
                                 Maciej Dębski, Małgorzata Borkowska-Niszczota, Robert Andrzejczyk




coping with the COVID-19 restrictions introduced in Poland in 2020, both during
the lockdown, as well as spring and summer economy unfreezing. Most of the
surveyed accommodation establishments coped with lockdown restrictions
and re-opened in the spring. Both during lockdown and between May and
June, in the large number of establishments employment level and employees’
remuneration remained unchanged, although some entities reported the de-
cline. Massive downsizing or establishments liquidations were not observed,
though. Decline in revenues on service sales was the most visible pandemic
impact in the majority of establishments. That was caused by shorter stay of
guests, lower occupancy level, and in particular, sharp decrease in the share of
foreign guests. Despite lower revenues, to attract customers establishments
were undertaking different types of actions aimed at guaranteeing tourists’
safety, which entailed considerable organisational effort and financial burden.
That could result in increased maintenance costs and room rates. However,
according to research results, changes in the maintenance costs were much
diverse, in some establishments they increased (usually the increase was greater
following lockdown), in the others declined or were the same, but room rates
remained unchanged or even declined. Attractive rates were one of the tools
to withstand competition and attract tourists. In terms of employment level and
remuneration, situation of the micro-establishments slightly improved during
the summer holiday. Positive increase or lesser decline in occupancy level as
compared to the previous period were observed as well. Fewer establishments
reported decline in revenues with more entities earning higher incomes, how-
ever maintenance costs were higher in the larger number of entities. Certainly,
entrepreneurs expected better results in the summer holiday. Unfortunately,
due to still unsatisfactory share of foreign guests during the summer holiday,
the situation was not much better. As the number of infections continues to
increase and there is no visible pandemic extinction, entrepreneurs expect
state support, mostly in the form of financial aid, but also in the form actions
aimed at decreasing operational costs. They also opt for new solutions that
will make it possible to operate their businesses even during the pandemic.


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                                Tourist Accommodation Establishments during the Pandemic – Consequences and
                          Aid Reporton a Survey among Polish Micro-enterprises Offering Accommodation Services




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