Working capital grant for the TURISTIC STATE “TURYSTA” Wałbrzych
As a result of the pandemic, international tourism was completely paralysed in mid-March 2020. The closure of borders and the complete suspension of international flights led to the abandonment of customers from departures. Organised individual and group trips abroad had to be cancelled, which required the trader to reimburse the fees and advances paid. In the following months sales decreased drastically, resulting in a decrease in the company’s revenues and the number of customers. Despite the low revenues, the company continued to bear the costs of hiring employees, maintaining the company (e.g. operating costs, labour costs).The shortfall in cash and the obligation to reimburse the funds already paid (advances) by customers led to problems with maintaining the company’s liquidity. The interest in tourist trips is still small, customers only choose to travel within the national borders, which does not allow for high enough sales to maintain liquidity. In view of this situation, the company requests a grant in order to maintain its activities. The funds granted under the project will be transferred to finance the day-to-day operation of the company, i.e. utility fees – the company has premises in the centre of Wałbrzych, where it serves customers, purchases of operating goods and fuels required to maintain the company’s business continuity, repayment of liabilities – leasing instalments and loans and public-law liabilities. Before the pandemic, the company was financially sound and had a group of regular customers. The company took care of the development and expansion of the customer portfolio. The type of business carried out often requires an obligation-advance/initial fee with contractors (hotels, catering outlets, transport companies). In order to continue to provide quality services, the company needs financial support in order to be able to pay fees.