Car Rental Sector in Majorca suffering.

Car Rental Sector in Majorca suffering. archive photo.

15-09-2020Ultima Hora

Turnover at car rental companies in the Balearic Islands has fallen by 80% compared to 2019 and since the beginning of the pandemic, only 22 of the 110 companies in the Sector have resumed activity.

70% of the 1,200 employees in the Car Rental Sector are back at work and the rest are in the ERTE, according to the Business Group for Rental Vehicles in the Balearic Islands, or AEVAB which is affiliated with Pimem.

Many car rental companies were planning to buy a new fleet of electric cars before the pandemic to comply with climate law changes and some were unable to cancel their orders despite the fact that there was no activity.

AEVAB pointed out that the high season began in July but measures taken by the UK and Germany in August stopped all tourist activity, so there’s only been turnover for a month and a half this year.

AEVAB President Ramon Reus commented that "year after year" the sector must face crises that cause the closure of car rental companies, either due to lack of generational continuity or the proliferation of multinationals.

Due to the coronavirus crisis this year, many multinationals that use the car rental channel for export have not moved large fleets of vehicles to the Balearic Islands.

“There has been less unfair competition and more balanced prices,” said Reus. "The authorities must assume responsibility for the sustainability of our Sector and control activity.”

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