Bar and restaurant turnover fell by 55% in August compared to 2019 and is forecast to fall by 70% by year’s end, says PIMEM President, Eugènia Cusí.
The future of the entire Sector depends on what happens with Covid-19.
"It is difficult to anticipate what will happen when we’re still not clear what will happen with ERTEs, International mobility or safe corridors," said Cusí.
What is clear is that 42% of restaurants will close soon for the winter, 18% will fold and the rest will hang on, in the hope of staying afloat until next season.
Of the 58% of bars and restaurants that stay open, “only 9% will operate as normal, 11% will work at half the normal pace and 37% will cut back to the bare minimum,” she says.
Dialogue
Eugènia Cusí stressed the importance of a "collaborative" dialogue table between public and private Administration.
“We demand that the Balearic Government and the Central Government take responsibility for the economic damages that these measures have caused our businesses,” said Cusí who pointed out that most of Majorca's 10,500 businesses are very small companies.
"We are talking about businesses that have not been able to access aid, but with just a small amount of money they could survive the winter season."
In the coming months, PIMEM hopes to negotiate with institutions and entities, to obtain tax exemption for the Sector and "secure an economic injection for micro-businesses in Majorca.”
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When lockdown started in the UK, my boss closed the restaurant, just keeping the takeaway going. To avoid infection she only employed her own family on 1 shift and the manager and her family on the other. 10 of us were furloughed. She's since found out she makes more money from running a takeaway. Than from running both. Less wages of course. Not just Mallorca that's being hit hard. 10 of us have now been made redundant !!
We have been coming to Mallorca for 21 years and we have never seen more than 30% of restaurants open in winter. So, what is new? The virus may shake out the poorer quality places and maybe, just maybe, next year the restaurants that do survive will realise that quality and value for money will attract customers back. Mallorca was becoming far too expensive and there appeared to be a captive market leading to a degree of arrogance and certainly low standards. Competition from other countries has probably already attracted a large slice of the action in 2021. Time to wake up guys.