Hotel Chains in the Balearic Islands have started shutting down establishments in tourist areas of Majorca because of the steep fall in tourist demand, negative occupancy levels in the last seven days and the dismal number of reservations in the coming weeks.
Playa de Palma, Alcudia-Can Picafort, Cala Millor, Playa de Muro, Magalluf and other areas of Calvia have been worst affected by the decline in British and German tourism since the end of July and fewer visitors are now coming from Belgium, Holland, Denmark and Austria.
The quarantine measures imposed on travellers arriving in other countries from Spain is a total disaster for the Island's Tour Operators, Airlines and Hoteliers.
Large hotel chains in Majorca, such as Barceló, Meliá, Riu and Iberostar, will hold out as long as possible, but are preparing a schedule for closures.
"We are maintaining our programming, but it is clear that the evolution of the European source markets does not help and the season is already lost and we will close ahead of time," they said.
Chains such as Grupotel, Hipotels, HM, McHotels, THB, Roc, Valentín, Garden, Ferrer, BQ, Edén, Stil, Palmira, Blau, Esperanza, Protur and other small and medium-sized hotel companies are already in the process of closing their doors.
Business started to slump after the British Foreign Office advised people not to travel to Spain unless absolutely necessary and the UK Government introduced mandatory quarantine for all travellers from Spain, except the Canary Islands. When Berlin declared the Balearic Islands a risk zone for coronavirus it marked the end of the season.
“Enormous effort was made to start the season, including the completion of the Pilot Plan and we recovered hundreds of workers from ERTE, then faced an unthinkable situation at the end of June which was aggravated by the levels of contagion in the Islands,” said hoteliers. “There are no tourists and vacation packages are not being sold, so it is necessary to close.”
The closures were scheduled to begin in September but the increase in Covid-19 outbreaks in Spain has forced hoteliers to take drastic action.
Large and medium-sized chains say they’ll accommodate guests in one or two hotels and close the rest, putting thousands of workers back in ERTE.