Open letter from the Mayor of Luhačovice to the Government of the Czech Republic

Dear Prime Minister, Dear Members of the Government,

As the mayor of the spa town of Luhačovice, a town of five thousand people, I am appealing to you for support in the matter of preserving the largest Moravian spa.

As a result of the necessary crisis measures of the government, tourism in the Czech Republic is one of the most economically threatened sectors. Luhačovice is fatally affected in this respect, because our spa town is actually synonymous with the spa, accommodation, hospitality, services and trade. The current situation is not easy for anyone, but while the overall business environment is partly restricted, it is the tourism sector that is 100% suppressed. The majority of the local population works in this sector, which has been de facto halted by government measures, and they are dependent on it for their livelihood. I communicate daily with citizens, entrepreneurs, employers, and also with the directors of municipal contributory organisations, and I perceive great concern about the current state of affairs. The potential threat of high unemployment could have far-reaching effects on the entire region and paralyse the whole area in the long term, with implications for the state budget. The Luhačovice area has historically always been a stable entity and the possible bankruptcy of tourism operators will bring about the destruction of the cultural heritage. Most local employers are trying to prevent mass redundancies, but the reserves created are running out and there is no income at the moment. The entire business structure of the spa town is interconnected, and when restaurants and hotels had to close, it immediately began to affect other segments.

The city's budget will also be radically affected by measures to prevent the spread of contagion. This is not a simple matter for a spa town of our size, because the spa and tourism industry (a very important source of local taxes, parking fees, etc.) has been halted, and we can certainly expect a significant drop in the city's tax revenue. The current setup of the Antivirus compensation program lacks employment support for the cities' contributing organizations, which find themselves in a similar situation as other business entities, and the cities have to financially compensate for the revenue shortfalls.

Despite this, a wave of solidarity, mutual aid and cooperation has risen in our city. All citizens, without distinction, have submitted to strict quarantine, and it is certainly to our credit that we are one of the areas with the lowest number of infections. We are all pulling together and resisting during this crisis, but we also know that we cannot do without the help of the state. We look to the government to help save jobs and prevent the collapse of much of the business on which our city is built.

We call for a significant simplification of applications and an acceleration of the release of funds from the COVID I and II programs.

We call for accelerated support for tradesmen and companies that are on the verge of existence and need immediate relief from expenses in the form of a subsidy determined by the number of employees.

Entities affected by crisis measures should not lose the possibility of claiming compensation.

We call for acceleration of the Antivirus compensation program and at the same time for its extension to the city's contributory organizations in the field of culture and sports. The measures set by the government neglect the impact on cities through their contributory organisations in the field of culture and sport (information centres, cinemas, cultural and social events, congresses, sports centres, swimming pools), which are reaching zero in terms of revenues (the revenues of the contributory organisations covered 60-70% of their costs), and the austerity measures introduced by the city-founder are not enough to compensate for this drop in revenues.

The seriousness of the situation is also realized by the Governor of the Zlín Region Jiří Čunek, from whose point of view the current situation is tragic for Luhačovice and if the restrictions, when the spa cannot be operated, last for a long time, the impact would be fatal for the spa. As the Governor said. "The restart of the whole region would be long-term, because people might not come back in the future. It's not just the clients and spa guests, but also the staff who look after them and provide them with services and medical care. In the current situation, direct support needs to be urgently addressed so that the spa and tourism sector in Luhačovice does not disappear. The spa is based not only on the environment and the springs, but above all on the people."

I fully agree with this, our spa town needs support to help the employers of nearly 2,000 employees to survive these crucial few weeks.

We therefore ask for your cooperation and understanding.

With kind regards

Ing. Marian Ležák

Mayor of Luhačovice

Categories: News from the city, Luhačovice, COVID-19, Spa Luhačovice, Luhačovice Town Hall, City of Luhačovice, Coronavirus