The hospitality industry, waiting for the aid plan: it will lose 50% of its turnover and up to 1.4 million jobs

The sector continues to demand 8,500 million euros in aid that the Government promised them and they see the recovery at the end of 2021.

The hospitality industry explodes: bars and restaurants ask for a rescue plan in the face of the wave of closures

The hospitality drama continues. The sector will close with a 50% drop in turnover, which translates into a fall of 67,000 million euros in 2020 (compared to the 129,000 million registered in 2019), according to the Hospitality of Spain. Situation that puts 1.4 million jobs at stake.

Till the date, 85,000 establishments are permanently closed. If support measures are not produced to sustain companies in winter until recovery arrives, the figure can rise to 100,000 and 400,000 jobs. “There are 1.4 million total or part-time workers affected throughout the value chain,” they point out from the employer’s association.

Nowadays, there are 334,000 workers in ERTE. They emphasize that in the case of Andalusia they have returned to work only to give meals, which brings workers in this situation to 400,000.

The hospitality sector will be marked in the future by the restrictions of the third wave, the unknown about the aid and the effectiveness of the vaccine. They are also aware that there are trends such as delivery Y take away that have come to stay.

And as for the future, Hospitality of Spain believes that until late 2021 and early 2022 recovery will not be seen. And that in the best of scenarios.

Aid plan

In this sense, the sector regrets that the aid plan announced by the Executive of Pedro Sánchez does not arrive. “An urgent aid plan is necessary. Everything has gotten worse. That aid plan that was urgent is even more urgent. Two months ago the Government announced a plan and it is surprising that we do not know anything, “says the President of Hospitality of Spain, José Luis Yzuel.

It should be remembered that the hospitality sector, through the Juntos con la Hostelería platform (made up of FIAB, Hostelería de España and Aecoc), requested direct aid to the sector worth 8,500 million euros to the autonomous communities and the Minister of Industry, Commerce and Tourism, Reyes Maroto.

“Hopefully these aid will arrive and it will resemble what we have demanded. It seems that they are going to the next Council of Ministers ”, Izuel points out during the presentation of the Yearbook of the Hotel Industry of Spain 2020.

Fall until September

The average drop in billing between January and September for the hotel industry is 50.3% (42.8% in restaurants and 65.2% in accommodation). The greatest falls are concentrated in the Autonomous Communities most dependent on tourism, such as the Balearic Islands with a drop of 71%, in the Canary Islands of 56.5% and in Catalonia of 50%.

“These are figures up to September, but they have changed in the coming months”, They recognize from the employer since the restrictions of capacity and telework affect a lot, as in Catalonia and the Community of Madrid. More than a million have not been incorporated to work in Madrid ”, they assure. That is, one in four workers.