Economy sounds alarm over travel restrictions

economy sounds alarm over travel restrictions

Fitters cannot travel to customers abroad, trade fairs are cancelled: travel restrictions and regulatory confusion within the european union are not only a burden on the tourism industry. Leading german business associations have called on the federal government to change course on the corona-related restrictions on foreign travel and urged better coordination among EU member states.

The extended and widened restrictions and their lack of coordination between EU states had a variety of negative economic effects that went far beyond tourism, according to a joint paper by the DIHK, BDA, BDI, dehoga, DRV, HDE and ZDH associations. This is available to the german press agency. "Too frequent and last-minute changes to the rules on test strategies, quarantine requirements and travel warnings create uncertainty and increase economic risks."

The global trade and exchange of goods as well as the investment activity have been hit hard, warn the associations from industry, commerce, trade, hospitality and the travel industry. For example, technical specialists could not travel to install or repair machines – with consequences for the supply chain. In addition, international trade shows were cancelled. Thus new orders were missing.

The federal government recently lifted the travel warning for tourists due to the corona pandemic for more than 160 countries outside of the european union until 14. September verlangert. On wednesday the cabinet was able to discuss how to proceed afterwards.

The declaration of the associations states that the business community is aware that travel restrictions are a political tool to contain the pandemic. "However, travel restrictions run the risk of severely affecting economic activities such as trade and investment."

The associations demand that in the future an economic impact assessment be part of the considerations when the foreign office classifies countries and decides on travel warnings. In the future, the ministry of economy should be involved in the preparation of travel restrictions throughout the country. The worldwide travel restrictions had to take into account the very different situations in different countries. It goes on to say that negative consequences hit many companies in a very fragile economic phase. "In contrast to the beginning of the pandemic, many of the liquidity and capital reserves have now been used up." Many companies are threatened with insolvency. 


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