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article_detail
Date Published: 02/07/2020
ARCHIVED - Spanish tourist sector lost 15 billion euros of revenue in two months of covid lockdown
Zero income from international tourism in Spain for the second consecutive month
The cost of the Covid crisis continues to rise and in financial terms one of the sectors hardest hit is that of tourism, which still faces an uncertain future this summer, with many restaurants and hotels choosing to stay closed rather than struggle through what will be an undoubtedly difficult summer campaign.
The National Institute of Statistics has today published its monthly summaries for both the number of tourists arriving in Spain and the amount they spent in the country for May 2020 and in both cases the totals for the second month running are zero.
In April 2019 foreign tourists spent 7,095 million euros (that’s 7 BILLION euros), with an average expenditure per tourist of 990 euros, 153 euros a day per person.
In May 2019, the expenditure increased to 8,195 million euros (8.1 BILLION euros), with an average of 1,030 euros per person, or 163 euros a day.
So the total loss in these two months alone, is over 15 BILLION euros.
At the beginning of March tourism started to feel the effects of the growing covid crisis and visitor numbers began to decline sharply as fears grew about the prospect of lockdowns and quarantines, and by the 14th March the state of emergency had been declared and Spain went into lockdown.
Tourism expenditure as a result, plummeted by 63%, tourists spending only 2.2 billion during March.
The cumulative effect of the first five months of the year is a drop in tourist visitors of 64%, with just 10.5 million tourists arriving in Spain and a fall of 62% in total expenditure, bringing in just 11.7 billion euros.
For a country which earns more than 12% of its GDP through tourism, it’s a disaster.
In May 2019, nearly eight million tourists arrived in Spain but this year frontiers have been closed, airports processing only travellers returning to their habitual residences and no tourists whatsoever, a disastrous scenario for the sector.
There is still tremendous uncertainty about the summer ahead, particularly regarding the flow of international tourists due to the covid situation.
Although EU borders have re-opened to fellow member states and the EU agreed a list of “safe” countries from which non-EU nationals wishing to enter the “27”can be drawn, there is still a great deal of uncertainty relating to international travel, fear of catching Covid and the lack of travel options making international travel difficult.
The UK has still not settled the question of whether it will be binning its quarantine requirement, following widespread condemnation within the industry of the scheme, so even on July 2nd UK residents are in the dark about whether they can safely book a flight to Spain and then return to the UK without being forced to quarantine for 14 days.
And as a result of this uncertainty, airlines are still cancelling dozens of flights between Spain and the UK, often with little warning, making it increasingly difficult for those who want to come to Spain to do so.
With so much uncertainty, many hotels and restaurants have opted not to open and 1.8 million people remain in limbo on the ERTE temporary redundancies scheme until the end of September, unsure whether their job will still exist in the future if their place of employment is able to re-open or whether the business will close altogether.
Outbreaks in different parts of the country continue to create unease, with many in the domestic market unwilling to make plans for long summer breaks just in case there is the need to quarantine or leave an area due to the imposition of a lockdown.
As a result, the Spanish domestic market is largely opting for “staycations” this year, but choosing to take shorter breaks in areas which are generally less populated instead of choosing their normal extended summer holiday by the beach in popular tourist areas, opting above all for accommodation in which they feel “safe”.
As a result, rural tourism is enjoying a surge of interest, as are rentals of camper vans and villas, but this does nothing to ease the misery of hotels on the costas and the tens of thousands of people who depend on this annual flow of international tourists to feed them.
Foreign tourists have started to trickle in through the airports once again, but numbers are expected to be significantly lower than in previous years.
There is nothing, unfortunately, certain this summer, but uncertainty.
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