The terrible economic consequences of the coronavirus in Spain. Around 40,000 hotel and catering establishments have already closed permanently in the country due to the Covid-19 pandemic, weighed down by the lack of tourists or office workers, said on Tuesday the employers' organization representing the sector.
This figure represents 13% of the total number of cafes, bars, restaurants and hotels in Spain. This economic sector is crucial in this very touristy country whose inhabitants also eat many meals away from home, according to Hosteleria de España.
More than 20% expected to close by the end of the year
By the end of 2020, 65,000 establishments should have closed, or more than 20% of the total. "The worst omens will be confirmed", regretted the president of the federation, José Luis Izuel, during a press conference.
In the middle of summer, and while the borders with the European Union have reopened a month ago, "there are very few tourists (...) in areas of outright tourism", such as the Balearic archipelago where less than half of the bars and restaurants had reopened by July 13, Izuel said. Business is also very bad in the office districts of big cities, deserted while teleworking is still recommended by the government.
The fear of losing more than a million jobs
"Telecommuting affects breakfast, pincho de tortilla (piece of omelet), churros (donuts), the menu of the day, especially in Madrid," Izuel explained, citing the snacks traditionally consumed by locals. Spaniards who often have their breakfast in cafes. The sector's turnover could be cut by 50% in 2020 according to the organization, which fears the loss of 900,000 to 1.1 million direct and indirect jobs.
Hosteleria de España calls for “a lot of funds” from the European loan and grant stimulus package approved on Tuesday to be used to support the hotel and catering sector, which accounts for 6% of Spain's GDP and around 9% of employment .
Tourism as a whole represents 12% of the GDP of Spain, the second largest tourist destination in the world after France. At the end of June, the government presented a tourism assistance plan of 4.2 billion euros, consisting mainly of loans guaranteed by the State. But the sector is asking for stronger measures: direct money transfers, tax cuts, or even “good holidays” to spend for the Spaniards, as Italy does. With more than 28,400 officially recorded deaths, Spain is one of the countries most affected by the pandemic.
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