The Spanish government has been busy telling businesses what they can do and what they can´t do under the different lockdown phases. It was the free market gone mad but all for a good cause with the government dictating to businesses when they could open and what they could do.

Bars and restaurants with terraces were allowed to open and then a week later they were allowed to open inside but with all the necessary health and safety guidelines. It was all very nice and part of Spain returning to normal after the lockdown. But the government can dictate policy but it is businesses who decided whether it is profitable or not.

Sadly this has been the case in many parts of the island. Businesses which are allowed to open have stayed closed because they do not believe that it is a profitable for them to open. Some hotels have opened but the majority are closed because there are no tourists.

In the case of Majorca until the airport starts welcoming international flights then a large number of businesses will not open. This is one of the reasons why the local authorities are desperate for tourists to start coming to the island...because that is when local businesses will start operating. The lockdown phases which have been introduced by the government have been successful from a public safety point of view but the business community is deeply concerned about the lack of trade. With no tourists and thousands of people without a job times are hard.

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Yogi / Hace about 1 month

Also The furlough scheme ERTE, and it’s complicated operation and eligibility mean that hotels and other businesses will have to remove all staff from the scheme (and pay them) even if they only want to open a small portion of their operation. This has put an enormous disincentive in the way of some, mainly medium sized hospitality businesses, opening at all. I understand that The Govt. is discussing how to overcome this, but for these businesses it’s clearly a no-brainier. It’s simpler to stay shut, perhaps for the entire season, cut your losses and start afresh, hopefully, next year.

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