A TOTAL of €11.1 million was paid out in benefits 5,295 hotel employees who were temporarily or permanently out of employment during the winter period between November 1, 2010 and March 31, 2011.
According to Minister of Labour and Social Insurance Sotiroulla Charalambous, the number of unemployed hotel workers registered with the ministry increased by 8.6 per cent during the 2010-2011 winter period when hotels were not in operation.
Charalambous added that the suspension of the hotels’ operation increases pressures on the Social Security Fund and prevented young people from looking for a job in the industry.
To respond to this increase in the number of businesses which suspend their operation, Charalambous said that the Labour Ministry was working together with Higher Hotel Institute of Cyprus (HHIC) to implement the Grant Project in Hotel Industry for a third consecutive year.
The budget for the project amounts to €612,000 and it is funded by the European Social Fund by 85 per cent. The project, which will last till 2013, aims to educate and train employees from hotels that suspend their operation totally or partially.
Charalambous yesterday expressed her hope that the programme would lead to a reduction in seasonality and an increase in productivity, turning unemployment benefits into training allowance.
The Grant Project was first implemented in 2009, without much success. Only 49 employees were involved in the programme, with just 39 of them completing it successfully. The second year of the programme was more successful, with a participation of 153 hotel employees.
Although during the first year of the programme the target was only fulfilled by 16 per cent, this rate increased to 64 per cent during the second year of its implementation. Charalambous said that they are expecting to meet and even surpass the target by 2012.
According to Charalambous, the Ministry is also in contact with its partners in the tourist and hotel industry in view of establishing a committee that will evaluate the institution of the hotels’ suspension of operation. The committee will look into reducing the period when workers receive unemployment benefits and set the parameters for effective training of hotel employees.
Hotels suspending their operation in winter can submit their participation application for this winter’s training programme between September 2 and October 14.
