Spain’s tourism sector is a vital part of the country’s economy accounting for up to 16% of GDP and is a key portion of Spain’s economic recovery program.
A report holds that long-term Spain’s Tourism Revenues projected to trend around €4440.00 million in 2020.
However, since the outbreak of the coronavirus in china and its spreading to 54 countries among which is Spain, the tourism sector in Spain has been facing challenges right from when the first Brit tested positive to it at son de Especes hospital, Mallorca.
Maria Jose Aguilo, Executive Vice president of the Mallorca Hotel Business Federation (FEHM), said that many hotels in Spain are recording a rise in bookings cancellations since the virus got to Spain.
Aguilo talking to the press conference explained that some organizations were currently considering delaying opening at Easter provided bookings do not pick up in weeks to come.
“If the current situation continues and sales are not revived, it is clear that with 30% occupancy, establishments will not open during Holy Week,” he said.
Again, Aguilo warns that the epidemic may have a knock-on effect on hires as the start date on short-term contracts may be suspended till summertime.
“Despite being a safe destination, we are being harmed by an accumulation of circumstances which will have a direct impact on hiring workers and in the opening of hotels,” He added.
Several complaints have been put forth by the Globalia and Barcelo hotel chains on the negative impact the epidemic is rendering on their businesses including stagnation in their bookings.
Again, the cancellation of the Italian based Luxottica Group’s annual convention due to swelling fears on the spread of coronavirus has by far affected several businesses on the Island. Anticipated to be capable of pulling over some 500people to the Island, all of the assembly’s hotel bookings, transportation, transfers, excursions and restaurant bookings remained cancelled.
The cancellations continue in other sectors thanks to fear of the spread of the killer coronavirus. Report by Spanish and foreign officers hold that customers are cancelling flights to Mallorca at Easter.
“During the next two months, we will have to reschedule flights between Mallorca and all European destinations.
“It’s a complicated situation and the crisis has taken its toll on sales for our Easter campaign,” an airline spokesman said.
Heretofore, it is still not clear what the potential impact of its spreading to Europe is, but confirmation retains that the situation is fluid-linked and changes every day.