Bar terrace in Palma, Mallorca

A 70% fall in Balearic hospitality industry turnover.

15-12-2020Jaume Morey

On Tuesday, Hostelería de España, the confederation that represents bar, restaurant, cafe and pub businesses nationwide, presented its 2020 yearbook. Information contained in this points to a 50% fall in turnover in 2020 and the potential loss of 67,000 million euros and 1.1 million jobs.

At the start of the pandemic, 400,000 jobs disappeared, while some 900,000 workers were placed on ERTE terms. During April and May, turnover shrank by 90%. Given the seriousness of the situation, up to a third of the 315,000 establishments which existed in 2019 could disappear by February 2021 if ERTE is not extended further.

Antonio Garamendi, the president of the CEOE national confederation of business organisations, said that hospitality has been the industry most affected by the pandemic. "We are talking about the most vulnerable businesses and people in Spain. They have their businesses and a high risk of losing them. This country has an obligation to them. I would not like to see this yearbook in 2021 with the data that may emerge, as they could be terrifying. We must get across that the hospitality industry is safe and that it complies with all the systems."

Emilio Gallego, the secretary general of Hostelería de España, observed that a significant recovery of the industry was not envisaged until the end of 2021 or early 2022. "It is in crisis. There is a major depression, and a plan is needed for its restructuring."

Gallego explained that sales fell most in the Balearics between January and September. The 71.2% decline in turnover in the Balearics was followed by 56.5% in the Canaries and 50.9% in Catalonia. Regions with lower falls were ones that were less reliant on foreign tourism, e.g. Asturias (32.9%) and Cantabria (36.8%).

The president of Hostelería de España, José Luis Yzuel, expressed his hope that Easter 2021 will mark a turning point and that in summer there will be "normal" levels of business. The industry would therefore end 2021 "in the best possible way" after what has been "a bad dream".

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